Order Unit of Measure Business Rules

The following business rules apply to Order Unit of Measure:

• When any material receipts are performed, the system uses the order unit-of-measure factor to determine the effective quantity received and the effective unit cost. These effective values are used in all quantity adjustments and cost adjustments.
• The order unit-of-measure must be a positive number, greater than zero. If you attempt to set the order unit of measure to zero, null, or a negative number, the application will use a value of one.

• To calculate the effective quantity received, the quantity received is multiplied by the order unit of measure factor.

• To calculate the effective unit cost, the unit cost is divided by the order unit-of-measure.