How to purchase in a large quantity, but transfer in a smaller quantity?

[nik_lawh]

We are having a debate on what is best practice and how to keep inventory and material costs accurate. 
If I have an Item I purchase in a larger quantity, i.e: AAA Industrial Batteries (24-Pack)
The warehouse distributes them in smaller quantities.. like (3) individual batteries for a Zoeller water leak alarm.

What is the best practice for either tracking, ordering, or transfers? 

Thank you!

[codybumpus · Accepted solution]

We were just having this discussion last week. Check out this post: 

https://community.servicetitan.com/t5/Inventory/How-to-track-replenishment-of-items-items-that-you-b...

The obvious problem is that especially in the case of something like batteries that vary in cost each time you purchase them if you track them as a unit per battery you're going to have to constantly modify the cost per battery. Instead of just being able to put in that a pack of batteries was $16.99 or whatever you'll have to break that out into $0.70792 per battery, let alone if the next pack you buy is $17.50 then you have to adjust your cost again. 

I think the real answer is something that doesn't exist yet and is a unit of measure feature that I linked in that older post that is supposed to be coming in the future. There needs to be a way to purchase in one unit and consume in another. Anything else until that feature is available is just a work around.

You can either purchase them at each individual unit, such as each battery, which isn't a terrible suggestion unless you have multiple bulk items that you use as we do. You'll just have to stay on top of changing costs and make sure that you're adjusting the cost per unit accurately.

The other option is to track the bulk quantities as one unit and consume them as decimal points. This is the method we use. It's not perfect but allows us to keep up with changing costs better as we can just update the old cost with the new cost and it also allows us to see the cost change easier. It also automatically consumes at the appropriate cost without running the math. The only thing you need to do is make sure you know how many individual units are in your bulk unit and know what the decimal point is so you're consuming accurately. 

[RandiThompson]

Order and receive them them as a quantity of 24 not 1 box and then use or transfer them as 1ea. that should work. We order freon as quantity 25 (for 1 drum) since we use it by the pound. 

[Sheena_Palacios]

Truck inventory replenishment and transfers are the first things that comes to mind for achieving your goal of tracking!