Units of Measure in Inventory Management
The units of measure used in Inventory Management are:
Base Unit or Stockkeeping Unit
Unit of measure in which stocks are managed. All quantities you enter in other units are converted into the stockkeeping unit
Unit of Entry
Unit of measure in which a goods movement is entered. The unit of entry can be different from the stockkeeping unit.
You can enter a goods movement or a reservation in any unit of measure of the material. However, if you do not specify a unit of measure, the system automatically uses the unit of entry that has been defined for the given goods movement, that is:
For the unit of entry to be used properly, the unit of measure must be defined in the material master record (for the order unit, in the purchasing info record), or conversion to the relevant unit of measure (for example, from g to kg) must be possible.
For example, you can enter a goods receipt in the unit of issue of the material. The system then automatically converts the specified quantity to the stockkeeping unit. In the case of a goods receipt for a purchase order, the system also converts the quantity to the order unit.
Order Price Unit
Unit of measure (differing from the order unit) in which the vendor invoice is issued. The order price unit is defined in the purchase order or in the purchasing info record. If an order price unit is defined in the purchase order, the goods receipt must be entered both in the unit of entry and in the order price unit.