Feeding the correct units of measure for items on PO’s (or blankets) to your ERP system from EDI is extremely critical. Also, your customers/trading partners are going to be very picky about getting back the same unit of measure on return documents that they send on their PO’s.
Before we talk about using the TRG EDI Connector’s unit of measure capabilities, there are a couple of things you can do, outside of the TRG EDI Connector, to handle unit of measure discrepancies:
- When you start EDI with a new trading partner, one thing we always recommend is to get the trading partner to provide a list of items including pricing and units of measure. If you can work with your trading partner on cleaning up item numbers, prices, and units of measure before going live on EDI, it will save you from dealing with every discrepancy on an exception basis.
- If you identify situations where the trading partner is going to always order in a unit of measure different than your stocking unit of measure for an item, you can set up unit of measure translations in your ERP system to handle the differences. Most ERP systems have a way to establish global level, item and/or customer/item unit of measure conversions. So if your customer sends in ‘PC’, you can convert it to ‘EA’. You can also typically apply a conversion ratio in the ERP UM definition.
The TRG EDI Connector has built-in Unit of Measure conversion as well as the ability for you to enter, on a trading partner and item basis, unit of measure translation and conversion ratios.
EDI Connector capabilities include:
- When PO’s are processed, the EDI Connector looks up the stocking unit of measure from the ERP system. If the unit of measure on the incoming PO is different, an exception is noted on the audit report and the unit of measure passed to the ERP system will be the ERP system’s stocking unit of measure to ensure that the ERP system does not generate an error when processing the EDI PO. On return EDI documents, the unit of measure sent by the Trading Partner is used to ensure they get back the same unit of measure that they sent. This automated feature assumes there is a 1-to-1 ratio between the trading partner’s unit of measure and your stocking unit of measure.
- If you don’t want to see a Unit of Measure exception show up on the audit report every time, you can use the TRG EDI Connector Unit of Measure Ratio table to enter the translation from the customer’s unit of measure for an item to your stocking unit of measure. You can enter the conversion ratio of 1 to make it a 1-to-1 conversion of the quantity ordered.
- If you need to apply a ratio, you can enter a conversion ratio other than 1. When you do this, the TRG EDI Connector will convert the quantity ordered that is passed along to the ERP system using the ratio you set up. For example if your customer orders in ‘EA’, but you sell in a ‘CS’ unit of measure with 6 items in a ‘CS’, you can enter a ratio of .167 (1/6th) for the ratio. So if your customer orders 6 EA, your ERP system will end up with 1 CS. The ratio is also applied on the outbound transactions in reverse so 1 ‘CS’ is translated back to 6 ‘EA’ going back on PO acknowledgements, ASNs and invoices. Pricing is also converted using the ratio.
Accurate units of measure are a critical component of using EDI successfully and require some time and attention to be set up right from the beginning. The TRG EDI Connector provides capabilities to help make your EDI integration more seamless and streamlined by providing functionality to manage unit of measure translations.