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October 25, 2016

10/25/2016 11:21:00 AM
Oracle Order Management DUal UOM
 Oracle Order Management : DUAL UOM

Dual UOM functionality mainly comes into picture in industries like poultry and fruits where items are tracked based on Dual UOMs and there is a variable conversion rate between Primary and
Secondary UOMs.

In this type of industry, even though the primary quantity remains same, the secondary quantity varies
because of various factors.

In case the secondary quantity varies, the item can be invoiced based on the secondary quantity

In some business scenarios customers may order items in third UOM, for which the invoice should be
based on the secondary quantity shipped.

Whenever there is a change in secondary quantity, you must define the price list in Secondary UOM
with the Primary UOM check box enabled in the Price list. All pricing calculations for catch weight
items are performed with respect to the pricing unit of measure defined for that item.

Examples of catch weight items:

1) In the poultry industry, chicken will be measured in terms of Dual UOM like Each and Kg.

 One live chicken = 3 Kg, here we can define the Primary UOM as each; such that

One live chicken=One Each and Secondary UOM as Kg such that one live Chicken =2 Kg.

Primary UOM ‘Each’ indicates that one live chicken is always consistent in terms of Each, but the
chicken weight in Kgs may decrease or increase depending on the various conditions causing the bird
to either gain or lose weight.
In this case the customer requirement would be to set the price as per the
secondary UOM.

2) Consider an example of a Box of fruits. The Primary UOM is always a Box, but the weight of the box may vary depending on the environmental factors.
The customer would prefer to be invoiced based on the Secondary UOM ‘Kg’.

The UOMs used for the item Fruits are Box and Kg.
The conversions between the UOMs, Box and Kg, should also be defined so that the price will be
calculated based on Kg even if the customer places an order in a UOM that is Primary.

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