Oracle Inventory allows defining and converting between units of measure to manufacture, order, or receive items. A primary unit of measure is set for each item to track inventory and calculate transactions. Additional units can be set as secondary measures. Conversions between primary and secondary units define how quantities are stored and prices in dual units of measure. Tolerances for acceptable deviations in conversions can also be specified.

1. Oracle R12 Inventory – Defining Unit of Measure:
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Oracle Inventory provides a powerful methods for defining and manipulating units of measure. It can
be easily convert between the units of measure that is defined. This enables to manufacture, order,
or receive items in any unit of measure.
Unit of Measurement is defined for an item for tracking, storing & counting the items in the
organization.
Defining UOM for an Item:
Navigation:
India Local Inventory Responsibility > Oracle Inventory > Items > Master Items
Unit of Measure Block:
Primary Unit of Measure:
This UOM is used for the storing and selling UOM & calculated during every transactions. Any
necessary conversions are based on this UOM only. This attribute is not updatable.
Primary UOM is the default UOM for invoices and credit memos entered in Oracle Receivables.
Default primary unit of measure for new items is defined using the Profile Option:
“INV: Default Primary Unit of Measure”
Tracking:
This attribute controls how on-hand balances are tracked.
Available values are as follows:
Primary: System tracks the on-hand balances by the Primary UOM.
Primary & Secondary: System tracks the on-hand balances by both the primary and secondary UOM.
This option is available for process management enabled organization only.
Pricing:
This attribute controls if pricing is based on the primary or secondary unit of measure.
If the value is set to secondary, the system reprices the orders line at ship confirmation.
Secondary:
If the item is Dual Controlled, you can specify the Secondary unit of measure.
Defaulting:
Items can be stores in two units of measure.

2. The available choices are as follows:
Fixed: Inventory is stored in Primary and Secondary units of measure. Though item quantity entered
in one unit of measure, and the system will convert the quantity to the second unit of measure. Both
quantities will be displayed.
Default: Inventory is stored in Primary and Secondary units of measure. Though item quantity
entered in one unit of measure and the system will convert the quantity to the second unit of
measure. Both quantities will be displayed. System enables to change the quantity in the Secondary
unit of measure, without changing the quantity in the Primary unit of measure.
No Default: Inventory is stored in Primary and Secondary units of measure. This option is used when
the default conversion between the two units of measure is usually not the same. The system does
not automatically display in the Secondary unit of measure when specified the quantity for the
Primary unit of measure.
Deviation Factor +:
Decimal values can be entered as acceptable deviations. This produces a plus or minus tolerance of
acceptability.
Ex: If the allowable transaction quantity deviation for the item is 10 percent higher than the
established conversion, value to be entered as 0.10 in this field.
Deviation Factor –:
Decimal values can be entered as acceptable deviations. This produces a plus or minus tolerance of
acceptability.
Ex: If the allowable transaction quantity deviation for the item is 10 percent lower than the
established conversion, value to be entered as 0.10 in this field.
Conversions Block:
When an item is defined, user can decide which type of unit of measure conversion to use:
Item specific: Only uses unit of measure conversions unique to this item. If none exist, the item can
be transacted in Primary UOM.
Standard: Uses standard unit of measure conversions for this item if an item-specific conversion is
not available.
Both: Uses both item-specific and standard unit of measure conversions. If both exist for the same
unit of measure and item combination, the item-specific conversion is used.
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