Catch Weight Functionality

Dual UOM or Catch Weight management is used primarily in the meat and metal Industries. In these industries due to variability of each piece logistic unit of measure will generally differ from the valuation unit of measure. Shipping and receiving generally happens in Each or Box but payment happens on the weight. The key requirement for this business process is to track the inventory in two different unrelated UOMs where the relationship between both the UOMs is not fixed.

Inventory module’s Dual Unit of Measure functionality enables users to transact inventory items in two unrelated units of measures. With this functionality we can track item both in primary UOM as well as secondary UOM. Both the UOM and QTY are stored in the separate fields called secondary UOM and Secondary Qty in Database. This functionality was available in process inventory in 11i but introduced to discrete inventory also in R12.

We need to be aware that by just defining an item in dual UOM does not set the system to track the transaction in both the UOM. While creating an item we should set “Tracking ” as ” Primary and Secondary”. once done system will track all transactions in primary and secondary quantity and UOM.

Step1 : Navigate to Inventory > Item > Master Item

Under main Tab –>UOM Section

§  Define primary UOM

§  Tracking as Primary and Secondary

§  Pricing as Primary

§  Secondary UOM

§  Defaulting as No Default (as we don’t want application to automatically default the converted UOM value. Each chicken may vary its weight)

Step 2: Define conversion between 1st UOM and 2nd UOM of this Item

Navigate to Inventory > Setup > UOM > Conversion

Step3 : Pricing

The pricing unit of measure can be defined as either the primary or the secondary unit of measure for the item. Price lists are then created for that item in its pricing unit of measure. In our case ‘Pricing’ for the item is set to ‘Secondary ‘which is LB.

E.g. If the meat has a pricing unit of measure in LB, then at the time an order is taken the order line shows the default conversion value (for example, 5  LB for 10 Ea) as the pricing quantity as the shipping lot is yet not known.

A price based on that 5 LB is calculated. During shipping when the lot XYZ is picked up which has a weight of 8 LB the extended price will be changed to reflect the correct value.

Step 4: Do a Miscellaneous receipt

As we set Defaulting value to “No Default” while creating the item, we need to input the Quantity and Secondary Quantity as well manually.

(Actual conversion as per UOM is 10 Ea = 5 LB but the chicken in this case is little heavier than expected which is 8 LB. As the deviation factor is set to 100% system allows till 10 LB)

Step 5 : Order Management & Shipping

§  Sales orders is entered for 10 Ea (or 5 LB)

§  Unit Price got defaulted as 5 based on price list setup

Step 6 : Pickrelease the sales order

Step 7 : Pick the task through mobile and ensure that Primary Qty is 10 Ea and secondary Qty is 8 LB

(Alternatively, you can confirm the SecReqQty as 5 in the above screen and update the catch weight of the qty in the LPN through Catch Weight Update Page after completing Pick Drop. Navigate Oubound -> Packing -> Catch Wt Update

The above screen is just a sample screenshot but not related to this example)

Step 8 : Ship confirm the Order

The shipping transaction form clearly shows the Secondary Requested Qty and Secondary Picked Qty.

Go back to the order and you can clearly see the change in the Unit Price as per the shipment done.

Each LB is configured in the price list as 10 and so the total bill is 80 as 8 LB was shipped.