Glossary
Unit of measure
A unit of measure is how you count or weigh an item, such as piece, kilo or carton, and each unit relates to a smaller one.
What it means for a shop owner
You buy by the carton and sell by the piece, so you need the conversion number between them to keep stock correct. The price follows the unit you sell in, while stock is always counted in the smallest unit.
A worked example
A carton holds 12 pieces. You buy 5 cartons so stock gains 60 pieces, and after selling 14 pieces 46 remain.
Related
- InventoryInventory software for shops: branches and expiry
- SKU (stock keeping unit)SKU (stock keeping unit): definition and example
- Stock valuationStock valuation: definition and example
- Purchase orderPurchase order: definition and example
- Carton, pack and unit conversionCarton, pack and unit conversion: definition and example
Try it in your shop, free, no card.
The free plan: the whole shop for one branch, an offline cashier with stock, debts and accounting, with a daily limit on invoices, expenses and purchase orders. What it includes