Skip to main content

How to Change Item's Based Unit of Measure in Business Central

 It is quite frequent that user need to change the existing based unit of measure of an item to another scale in order to fit the operation requirement. But do take note that once there is remaining quantity in the item, an error message will pop up to prevent user from changing the unit of measure in Item Cards.


Refer to the following scenario where the user need to change one of the item, from "Box" to "Pcs"  with quantity still sitting in it. User will need to setup a UOM conversion where 1 "Box" of Apple is equivalent to 50 "Pcs" of Apple.

1.    You will need to perform an negative adjustment on the item quantity. Generate the Inventory Valuation Report to confirm the total quantity that need to adjust out. This is to make sure that the adjustment will not impact the item valuation after the quantity adjustment, as it should remain the same value before and after the adjustment.

Report Path: Search > Items > More Options > Report > Inventory > Finance Reports > Inventory Valuation



2.    Use "Negative Adjustment" in Item Journals to adjust ALL the quantity of Apple from the inventory. It is advise not to change the UNIT COST, user should follow as it is.

Page: Search > Item Journals




3.    Once the Negative Adjustment is posted in Item Journals page, the balance quantity of the item should be Zero "0" now.



4.    To setup the Unit of Measure conversion of the item, go to Units of Measure page.

Page: Search > Item > Select Item from the list > Select "Related" > Item > Unit of Measure



5.    Select the "Base Unit of Measure" code that will be used by this item. Once the Base Unit of Measure is set up, you can set up alternate units of measure with a conversion factor using "Qty. per Unit of Measure".
NOTE that the base Unit of Measure should be the lowest denominator.




6.    Proceed to Item Journals page to capture back the full quantity of the item using "Positive Adjustment". User will need to calculate the converted Quantity and Unit Cost based on the original recorded quantity and unit cost. The total "Amount" should be same as before the item change Unit of Measure.



7.    After posting the "Positive Adjustment" in Item Journals, the item quantity will now be updated based on the new Base Unit of Measure.


8.    The Item Valuation of the item should still remain the same as per original UOM recorded with different quantity.






Do you have question on BC that you think I can help?
Drop me an email at "Hello365businesscentral" at Gmail, I will try to answer if I can. 











Comments

Popular posts from this blog

How to Reverse Posted Documents in Business Central

  If you need to amend or change a posted documents in Business Central, there are few ways to do it instead of having you to manually create a reversal journal or Credit Memo to rectify a Posted Document. Before you proceed to Correct or Cancel any document that posted in Business Central, you need to identify the origin of the posted document, as the method of cancellation depends on the document type.   There are 2 types of documents that posted in Business Central. i.                      Journals – E.g., General Journals, Purchase Journals, Payment Journals, Sales Journals, Receipt Journals etc. ii.                    Documents – E.g., Purchase Invoice, Purchase Credit Memo, Sales Invoice, Sales Credit Memo etc.   A.       A.     C orrecting ...

Foreign Currency Revaluation in Microsoft Dynamics 365 Business Central

Microsoft Dynamics 365 Business Central (BC) allow users to account for foreign currency transactions. BC also able to translate the registered foreign currency amount into functional currency that setup in the entity using the conversion rates which setup in Exchange Table.   Due to the exchange rates fluctuate constantly, as a dollar worth in foreign currency today might not equivalent to the same foreign currency worth the next day. Hence, users are required to adjust the open documents that transact in foreign currency which include open invoices, credit memos, and advance payments. Once the open documents transacted in foreign currency is revalued, the gain and loss which calculate after comparing the closing rates at the period end will be posted to profit and loss as unrealised gain and loss, ensuring that the subledgers and general ledger can be reconciled.   This process can be done using Adjust Exchange Rate in BC, a batch job to adjust the exchange rates fo...

Disposal of Fixed Asset in Business Central

You can perform Fixed Asset Disposal in Business Central in Fixed Asset G/L Journals . The reason for performing fixed asset disposal may be result of several events: i.                       An asset is fully depreciated and must be disposed of ii.                        An asset needs to be removed due to unforeseen events (EG., theft) iii.                     An asset was captured with wrong information and need to be reversed   In the following example here, the user has registered the asset in the fixed asset book, and there is depreciation being perform too, but later identified that the asset was registered with wrong date. It will be easier to dispose this asset and capture again using new Fixed Asset ID...