How to track replenishment of items items that you buy in Bulk but you sell in smaller quantities.

[TM1010]

If i buy a Tank of refrigerant that is 25Ib and the cost is $500, how do I keep the track of replenishment in purchasing module.

if my item is “Tank of R-410” with cost $500. I can simply create a PO with that item and request 1 or 2. 

however when I am selling a task that has a linked material of 1ib I have to do the math and create 1/25 Ib= 0.04 Ib for 1Ib of r-410a task. Now when we sell that service, in the replenishment I will see 0.04 and …. Which I have to go and add those decimals and ensure when It getting closer to 1 I get one Tank. Is there an easier way for this kind of items?? Any input will be appreciated 

[TM1010]

Thank you all. another disappointment 

[dorobcp]

@LBabayan perhaps you can bring in another expert here as @codybumpus brings up a valid point. You could do as  @TM1010  originally mentioned and have the techs use only .04 for 1lb, but that puts the mgt in the hands of non-inventory personnel 

[codybumpus]

Yep! That's exactly what we're doing right now, keeping the bulk quantities as the 1 unit of inventory and consuming them with less than 1 quantities. Definitely looking forward to the multiple unit of measure feature!

[dorobcp · Accepted solution]

@TM1010 you should track the qty in lbs, and therefore when you buy it, it is 25 @1lb, not 1- 25lb tank. So you should not be stocking “Tank of R-410”  instead 25lb (this should be your min for an inventory template) should be "1 lb 410" and you buy 25 at a time.

I hope this makes sense

[codybumpus]

This does fix the problem in a sense, but is ultimately a work around as the 25 lb tank is really one unit from the purchasers perspective. This would complicate dealing with cost changes, which are a common thing in 2023. We deal with it ourselves as we order multiple inventory items in bulk on a pallet or on a roll and consume them in much smaller amounts.

There was supposed to be a Unit of Measure feature rolling out that would fix this very problem but I haven't heard any more about it. I'll post the section and copy the link to the article here:

Items can be ordered at one Unit of Measurement and consumed at a different Unit of Measurement.

• Reduce vendor confusion when placing orders.

• Eliminate the need for multiple part numbers to maintain accurate stock levels.

• Define multiple ordering and consumption units of measurement.

Howard says this one is a big deal, especially for contractors who may buy certain parts in bulk, but only use a small portion on each job. Without this feature, he says, it’s like using one screw on a job, but saying you used a whole bucket of screws.
https://www.servicetitan.com/blog/webinar-recap-purchasing-inventory 

[LBabayan]

Hi @TM1010,  great question! Let's see if one of our Inventory experts @dorobcp can help with this. Dorothy, have you worked with or have suggestions for tracking replenishment in purchasing module more efficiently?

Thank you🙂