You must receive goods using the same units of measure that are used in the estimates in Project and Job Costing.
Purchase Orders does not convert different units of measure when it updates PJC with quantities from receipts or invoices.
Example:
This example shows what can happen it you receive goods using different units of measure.
Assume that:
- Your estimate includes 70 items that cost $10 each.
- Shipment 1 includes 50 items, packed in 5 boxes.
- Shipment 2 includes 20 items, packed individually.
| Shipment | Material Category | Quantity | Conversion Factor | Cost |
|---|---|---|---|---|
| 1 | Item 1001 | 5 boxes | 10 | $500 |
| 2 | Item 1001 | 20 items | 1 | $200 |
When Project and Job Costing is updated with the quantities and costs of these shipments, the actual quantity and cost for item 1001 appears as follows:
| Shipment | Material Category | Quantity | Conversion Factor | Cost |
|---|---|---|---|---|
| 1 and 2 | Item 1001 | 25 | None | $700 |