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Inventory: Units of Measure

Lecture Slides are screen-captured images of important points in the lecture. Students can download and print out these lecture slide images to do practice problems as well as take notes while watching the lecture.

  • Intro 0:00
  • Setup Single Unit of Measure 2:12
    • How to Edit Unit of Measure on an Item
  • Setup Multiple Units of Measure 5:32
    • Setting up Preferences to Multiple Units of Measure Per Item
    • How to Edit Multiple Units of Measure on an Item
  • Assign Units of Measure to Items 8:44
    • Edit Items to Assign UN Set
  • Assign Measure Sets 9:42
    • Open Purchase Order and Select Unit of Measure
  • Use Units of Measure on Sales Forms 12:47

Transcription: Inventory: Units of Measure

Welcome back to Educator.com.0000

This is QuickBooks lessons: inventory units of measure. We are going to be talking about setting up units of measure and what they are.0002

In QuickBooks, we can only use units of measure utilizing the QuickBooks version Premier or the Enterprise Solutions in QuickBooks.0010

So, it is more of the advanced software there.0020

If you are using QuickBooks Pro, you are not going to be able to utilize this section or this module of QuickBooks.0023

Units of measure is something we can actually show, the prices of different volumes for instance.0033

We are going to have prices and rates and costs based on the units of measure or gallons. We can have volumes of that nature.0041

We can have the measurements of inches and millimeters, and we can convert those, as well.0050

For instance, if a business purchases some sort of inventory using gallons, and then, they could sell that same inventory as gallons.0056

It is unit for unit or measure for measure, and we can also certainly look at different measurements, as well.0065

We can purchase them in inches and sell them in millimeters or whatever, so we are going to have conversion rates as well for that.0072

Again, utilizing this function is really only a function of QuickBooks Premier or Enterprise Solutions.0081

QuickBooks will use single units of measure as well as multiple units of measure.0090

And the single units of measure can only be utilized in the QuickBooks Premier versions:0096

the QuickBooks Premier Non-profit or QuickBooks Premier Professional Services.0105

But, the units of measure for a single unit and multiple units per measure can be utilized in the Accountant version,0111

the Premier Contractor, the Premier Manufacturing and Wholesale, as well as the QuickBooks Enterprise Solutions.0119

So, those products of QuickBooks can utilize the multiple units per measure, as well.0125

The first thing that we are going to do is we are going to talk about setting up and how to set up a single unit of measure in QuickBooks.0131

Again, our inventory, our items are in the Item list. There are a couple of ways to get to our item list.0141

Of course, you know we can use the - get this message out of there - Lists and choose Item list.0148

Or from your Home menu, if you go to the right section where up here it says Chart of Accounts, Inventory Activities,0157

just below the Chart of Accounts, there should be an icon that says Items and Services.0164

If we click on that, it will pull up our Item list just as if we went to the Lists menu and pull down our Item list there.0169

So, in this measure, we are going to go in this particular part of the lesson.0177

We are going to add a unit of measure. We are going to do that.0181

So, we are going to go down to an existing item that we have under Lumber, and we are going to choose our Decking, OK?0185

And we are going to edit that, so, I can always hit Ctrl+E to edit, or if I choose Item at the bottom of the window, choose Item and choose Edit.0196

See, where the Quick function is. Ctrl+E is also right there.0208

So, it is going to pull up our item of the Decking of lumber.0213

And the thing that we are going to do now is we want to look at the unit of measure and notice that it is not enabled yet.0220

So, first thing we are going to do is we are going to click on Enable for this non-inventory part, and we are going to see a couple of options for us.0226

It is a single unit per item or multiple unit per item. So, we are actually going to say it is a single unit per item.0237

So, we are going to click on that because we are going to set this up for this particular item that we are going to be selling.0244

We will click on Next, and we will see that we can define and begin to find the units of measure.0253

So, we will go ahead and look at length for this particular item. That is inch, foot, yard, meter, etc., and we will click on Next.0261

Notice the other items you have.0270

There is Count. There is each box, Case etc.0272

There is Weight in Ounces, Pounds, Kilograms. There is Volume: Quart, Gallon.0275

There is Area: Square foot, Acres, Square meter. There is Time: Minute, Hour, Date.0280

So, there is a variety of units of measure that we are could choose from. In this case, for the Lumber decking, it is going to be length.0285

We will click on Next, and we can measure it in any way we like. We can measure in Inches, Yards, Miles, Foot, Millimeters, Meter.0293

But, in this case, it is going to be Lumber, and we are going to measure by foot.0301

Select that Radial button and click on finish. It is going to bring us back to the item.0307

Now, we have unit of measure, UM for unit of measure is by foot.0314

We can edit that if we like and go back, say "Well, I want to go back and change it and do something else to it", or we are going to keep it as foot, OK?0320

Now that we have learned how to set up a single unit of measure, we are going to talk about setting up multiple units of measure.0328

And in order to do that, we need to make sure that our preferences are set so that we can use multiple units of measure.0334

Again, you want to make sure that the version that you are using in multiple units is the QuickBooks Accountant version,0341

QuickBooks Premier Contractor, QuickBooks Manufacturing and Wholesale or the QuickBooks Enterprise Solutions.0352

Those are the only products of QuickBooks which will allow you to use multiple units of measure, but in order to do that, we want to go to our Preferences.0358

So, in order to access our Preferences for QuickBooks, from the Edit drop down menu, from our Menu bar, we will choose Edit.0368

And at the very bottom, we will choose Preferences.0375

From the left side of the window, we are going to choose Items and Inventory then, select the Company Preferences tab.0378

From there, we want to make sure that the units of measure, instead of being single units of measure per item,0387

we are going to do multiple units of measure per item and select that and then, click OK.0395

Now, we are going to set up multiple units of measure here for a particular item in our Item list.0401

We are going to choose our Counter.0409

So, from the Item list, we are going to go down to Counter, and we will do Ctrl+Edit to open up that item.0410

It is a non-inventory part, and we will notice that units of measure is blank.0421

If it is not enabled, you can go ahead and click on Enable and then, go into the set up for that.0427

From the dropdown menu, we are going to say Add new because we do not have what we want here.0433

It is actually there by Area, but I am going to do an add a new one, and we are going to do it this way.0438

It says Area. We are going to choose Area and click on Next.0442

We are go into Square foot if we want to do it by Square foot, and we will click on Next.0447

And from here, we are going to choose...I am not sure if we are going to use Square yard or Meter.0458

But, at this point, we will probably use Square meter here, and we will check on that if we want the Square meter.0467

And we can select Others, but we are just going to do the Square meter for now and click on Next.0480

And we are going to make sure that we have Square foot in Purchases. We are going to make sure that we have Square foot in Sales.0484

And we will go ahead and click on Next, and it is going to say Set name of this area by the square foot, and we will click on Finish.0490

So, now, we have the unit of measure that we are selecting for this particular item is going to be area by square foot.0499

Notice that also this particular item is used in assemblies or is purchased for a specific customer job.0507

So, this is an assembly item of which we went through in the past.0514

So, now, we have assigned that units of measure there and setting that up properly.0519

We are going to now assign the units of measure to those items, and we will continue on with that.0524

In the Item list, we are going to now choose Flooring.0530

We will go down to our items that says Flooring here, and we are going to start assigning units of measure or multiple measures there.0535

So, we will do a set for that. We will edit our flooring item by choosing Ctrl+Edit or from the item drop down menu, we will choose Edit item.0543

From the unit of measure, UM set, we will drop that down, and we will say area by the square foot, and we will then, click OK in the Edit menu.0556

Now, we have just assigned Flooring into utilizing area by square foot, so that assigns that.0573

Now, we are going to talk about assigning measure sets for that.0582

This company maybe wants to order the marble for a kitchen remodel, and in this exercise, we are going to order the marble using a purchase order.0586

And then, we are going to see how we can easily convert from one unit measure to another in the same measure set.0596

So, we will show you how that works in working with different measuring sets.0604

So, let's go into the...from the Vendors home page, we are going to go to the Vendors Center, OK?0611

Actually, let's go to the Home page here. Here we go.0628

And from the Vendors Center here, we are going to look at a particular purchase order.0631

From the drop down menu, we are going to choose Purchase Orders. From the New Transactions, we are going to use Purchase Orders.0644

On the Purchase Order, we are going to select Custom Kitchens of Bayshore.0657

So, we are going to say Custom Kitchens of Bayshore is our customer or vendor rather. We are going to purchase some items from them.0662

So, in the item column, we want to select Counter, the one we just set up a unit of measure for.0669

And in the quantity, we are going to use ten of those items, and it is going to be square feet, OK?0678

We have our prices, etc., so this is what we are going to buy, and we are going to buy those counters made for [inaudible], OK? Square feet, OK?0689

From here, we are going to go ahead, and we have our ten items there. We have the price that we are paying for it.0704

17.50 sounds like a lot of money for what we are paying for this item, but that is what we have.0715

From the units of measure by the way, we can drop the arrow down.0721

And we can actually choose or convert 10 square feet to 1.11 square per yard or change 10 square feet to 10 square yards.0726

We can choose those different sales.0736

We are going to leave it as 10 square yards at this point or square feet for this purpose.0738

And we will say Save and close, but notice you can actually convert it from the drop down menu.0748

Now, we have ordered that item, and that is how we go ahead and assign those units of measure on sales forms.0754

So, we have completed that section on utilizing units of measure. I hope that has been clear enough on how to use those.0764

Again, when we go in to purchasing those items, we could certainly purchase them0775

according to what our vendor sells them to us for in the various units of measure.0782

Again, thank you for visiting Educator.com. We will see you again next time.0788