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<ManualTopic ID="/baanerp/tc/onlinemanual/000014" xml:lang="en">
   <Header>
      <Title>To use conversion factors</Title>
      <Keyword type="header" order="d1e1446218">
         <Level1>Conversion factors</Level1>
      </Keyword>
   </Header>
   <GeneralSection>
      <Paragraph>In ERP Enterprise, you
		must define an item's <Link href="/baanerp/wh/glossary/glossary#000337" role="glossary">inventory unit</Link> in the <GUIRef href="/baanerp/tc/ibd/tcibd0501m000" role="session">Items - General (tcibd0501m000)</GUIRef> session. However, the inventory unit is not always the
		only <Link href="/baanerp/tc/glossary/glossary#Units_tc" role="glossary">unit</Link> in which an item's quantity is managed. On a sales
		order or a purchase order, the same item can have a different unit. For
		example, an item's inventory unit is 'piece', while the quantity of the same
		item on a sales order is expressed as 'box' , a box containing 6 pieces.</Paragraph>
      <Paragraph>To keep track of the correct item quantities in inventory, you
		must establish the ratio between two different units, so that ERP Enterprise can convert
		quantities. Therefore, define <Link href="/baanerp/td/glossary/glossary#ConverFactor_td" role="glossary">conversion factors</Link> in the <GUIRef href="/baanerp/tc/ibd/tcibd0103m000" role="session">Conversion Factors (tcibd0103m000)</GUIRef> session. Enter a unit in the <GUIRef href="/baanerp/tc/ibd/tcibd0103m000#tcibd003.basu" role="manual">Base Unit</GUIRef> field, and add one or more alternative
		units and their conversion factors.</Paragraph>
      <Paragraph>Calculate the conversion
		factor as follows:</Paragraph>
      <Formula space-and-orientation="indented-estimated">
         <Paragraph>alternative unit / base unit</Paragraph>
      </Formula>
      <ExampleSection>
         <SectionTitle>Example</SectionTitle>
         <List>
            <ListItem>Base unit: 1 piece.</ListItem>
            <ListItem>Alternative unit: 1 box containing 6 pieces.</ListItem>
            <ListItem>Conversion factor from boxes to pieces: 6/1 = 6.</ListItem>
         </List>
         <Paragraph>If a sales order mentions that 15 boxes are sold, ERP Enterprise decreases the
		  inventory of the item by 15 * 6 = 90 pieces.</Paragraph>
      </ExampleSection>
      <ExampleSection>
         <SectionTitle>Example</SectionTitle>
         <List>
            <ListItem>Base unit: 1 meter (100 centimeters).</ListItem>
            <ListItem>Alternative unit: 1 inch (2.54 centimeters).</ListItem>
            <ListItem>Conversion factor from inches to meters: 2.54/100 =
			 0.0254.</ListItem>
         </List>
         <Paragraph>If a purchase order
		  mentions 10 inches, ERP Enterprise increases the inventory of that item by 10 * 0.0254 = 0.254 meters.</Paragraph>
      </ExampleSection>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>Retrieving conversion factors</SectionTitle>
      <ProcedureList>
         <ListIntro>If ERP Enterprise carries out calculations with item quantities expressed in different units, the
		  correct conversion factor must be retrieved. ERP Enterprise uses the <GUIRef href="/baanerp/tc/ibd/tcibd0103m000" role="session">Conversion Factors (tcibd0103m000)</GUIRef> session to search for the correct conversion factor,
		  in the following sequence:</ListIntro>
         <ListItem>Conversion factor by
		  item.</ListItem>
         <ListItem>Conversion factor by
		  item group.</ListItem>
         <ListItem>General conversion
		  factor, which means that both the <GUIRef href="/baanerp/tc/ibd/tcibd0103m000#tcibd003.item" role="manual">Item</GUIRef> field and the <GUIRef href="/baanerp/tc/ibd/tcibd0103m000#tcibd003.citg" role="manual">Item Group</GUIRef> field are empty.</ListItem>
      </ProcedureList>
      <Paragraph>If no conversion factor is found, the <Link href="/baanerp/ti/glossary/glossary#BaseUnit_ti" role="glossary">base units</Link> in the <GUIRef href="/baanerp/tc/mcs/tcmcs0500m000" role="session">MCS Parameters (tcmcs0500m000)</GUIRef> session are used to find the correct conversion
		factor.</Paragraph>
      <Paragraph>If ERP Enterprise cannot find the
		applicable conversion factor, a message indicates that you must define the
		conversion factor.</Paragraph>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>Calculations on quantities</SectionTitle>
      <List>
         <ListIntro>ERP Enterprise carries out calculations using the company's base units. Before calculating
		  quantities of items, ERP Enterprise first:</ListIntro>
         <ListItem>Converts quantities of
		  the item that are expressed in alternative units to the item's base/inventory
		  unit.</ListItem>
         <ListItem>Converts the resulting
		  quantity of the item's base/inventory unit to the company's base unit of the
		  same physical type.</ListItem>
      </List>
   </GeneralSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/tc/onlinemanual/000016" role="manual">Defining units</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/tc/onlinemanual/000011" role="manual">Units</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/tc/onlinemanual/000015" role="manual">General and item dependent conversion factors</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>