When you are setting up components on a bill of materials, you can enter quantities in either Units or by % Weight.

The method you use depends on how you measure the components needed to produce a finished good, and affects how the On Hand quantities are relieved.

Unit Quantities

Use 'Units' for a component when the components needed to produce a finished good are not based on a percentage of the good’s weight (for example, the finished good is in a unit of measure other than a weight-related unit such as TON).

For example:

Finished Good: 031010 2 x 8 Concrete Form Panel
 Unit of Measure: EA

If 10 units of the finished good are produced, Inventory’s On Hand quantities would be relieved as follows:

% Weight Quantities

Enter a weight percentage when the amount used of a component material is based on a percentage of the finished good weight (for exmaple, TON). If using this method of entering quantities, you must set up a weight conversion for the component material in the IN Location Materials form.

Once you have entered the weight % for a component material, the system automatically converts it into the number of units used in production so that the appropriate amounts can be relieved from Inventory. Since the conversion to units is based on the conversion factor specified for the component material, it is important to make sure accurate weight conversion factors are defined for the finished good and each of its component materials.

For example, you have a mix design for asphalt that calls for a certain percentage of asphalt oil. The standard unit of measure for the asphalt is TON, and the standard unit of measure for the oil is GAL. The oil makes up 6% of the finished good’s weight. Enter .06 in the % Weight field, and the system will automatically calculate the number of gallons. (For this example, we will assume the conversion factor for GAL/TON is 250.000.)

If 10 units (TONS) of the finished good is produced, Inventory’s On Hand quantities would be relieved as follows: