How does BUSY accounting software handle conversions between different packing units for a single product?
To handle conversions between different packing units for a single product follow the below steps:
Solution/Answer/Relevant Steps
Step 1 :
Set Up Product Master:Create or update the product in the product master with all relevant details.Specify the primary packing unit (e.g., "Pieces," "Kilograms") for the product.
Step 2 :
Define Additional Packing Units:Within the product master, define the alternative packing units you want to use for the product (e.g., "Cartons," "Dozens").Specify the conversion ratio between the primary packing unit and each alternative packing unit (e.g., 1 carton = 10 pieces).
Step 3 :
Enter Purchase or Manufacturing Details:When entering purchase or manufacturing details, select the appropriate packing unit based on the quantity received or produced.The software will automatically convert the entered quantity to the primary packing unit.
Step 4 :
Stock Conversion Handling:When goods are received in a different packing unit than the primary unit, BUSY software performs the conversion automatically.The converted quantity is updated in the stock ledger under the primary packing unit.
Step 5 :
Sales Order Processing:When creating sales orders, select the desired packing unit for the products.The software will handle the conversion between packing units based on the defined ratios.
Step 6 :
Inventory Valuation:The software ensures that inventory valuation is accurate by converting all stock quantities to the primary packing unit.Valuation reports reflect the total quantity and value in the primary packing unit.
Step 7 :
Automatic Conversion Calculation:Whenever a packing unit conversion is needed, the software calculates the equivalent quantity in the primary packing unit using the defined ratio.
Step 8 :
Reporting:BUSY software provides reports that display product quantities, both in primary and alternative packing units.
Stock reports, sales reports, and purchase reports show details in the chosen packing unit for ease of analysis.
Step 9 :
Batch Conversion:For existing inventory, BUSY software often provides a batch conversion feature to convert quantities in alternative units to the primary unit.This ensures uniformity and consistency in inventory records.
Step 10 :
User Training:Proper training of users is essential to ensure they understand how packing unit conversions work and how to select the appropriate units in different scenarios.