This page will explain how to setup package ratios on parts in master inventory and how the package ratio affects ordering and receiving the parts. A package ratio is a multiplier set on parts that are purchased in bulk quantity but sold individually.
Ordering Parts with Package Ratio
Receiving Parts with a Package Ratio
Setting Up a Packaging Ratio
When viewing the General tab of a part in master inventory, there are 3 fields related to the package ratio:
- Selling Packaging – description of how the part is sold (e.g., quart, piece, each, etc.)
- Purchase Packaging – description of how the part is purchased (e.g., case, box, roll, etc.)
- Packaging Ratio – multiplier used when the part is ordered and received (e.g., if the package ratio is set to 12, ordering and receiving a quantity of 1 will receive 12 individual items into inventory)
Note: The selling and purchase packaging descriptions are set up in the Parts Pick List.
When using a package ratio multiplier, the Retail Price, Replacement Cost, Average Cost, and Standard Cost (depending on cost method used) should be equivalent to the price and cost of the individual item, not the package price and cost. This requires that you divide your package retail price and cost by the package ratio.
Note: If the part is in a price book and the price/cost indicated in the price book is the bulk price/cost, then you will need to uncheck the Price Book Update boxes for the retail price and replacement cost.
Ordering Parts with Package Ratio
When a part with a package ratio is added to the Ordering List, the Packaging Ratio field will show that there is a multiplier involved. In addition to that, the Ordering comments field will indicate how many individual items are being ordered.
Once the PO is created, those same fields carry over and the sub-total of the PO reflects the cost of the case.
Receiving Parts with a Package Ratio
When receiving a part with a package ratio the Pack Ratio field shows the multiplier. The Ext Cost and Ext Price fields will show the packaging ratio multiplied by the quantity received.
Once the item is fully received the total on hand (TOH) field in master inventory will reflect the individual quantities received.