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Units of Measure

In order to use the Unit of Measure function in QuickBooks, Preferences should be set accordingly. Navigate to Edit->Preferences->Items & Inventory, then select the appropriate setting.

unit of measure preference

The Single U/M per item setting allows only one measurement (case, dozen, gallon, etc) per item. The Multiple U/M setting allows multiple units of measure per item (each or dozen or case of 24, etc).

 unit of measure edit item window

Unit of Measure sets can be added from a list of those already created or ‘on-the-fly as new items are created. The first step will be to specify the type of measurement. The list of possibilities, count, length, volume, etc., will be shown as selections in the unit of measure setup screen.

A base unit of measure is the smallest unit in which the item will be used in transactions. Each would be a common base unit. Others might be gallon, or foot.

Next, related units of measure are selected. What other measures are used in QuickBooks transactions for this product? There will be suggestions in the table, but custom units can be created and used. For instance carton or pallet might be created as a separate row. Multiple measures can be used, you aren’t restricted to only one additional measurement type. For instance, Case might be selected and 24 entered as the number of ‘each’ (base unit) units that will constitute a case.

The final setup screen will allow the setup of defaults. A company might order a particular item by the case and sell by the each. This value can be overridden at the time of sale or purchase; it is a default value only.

invoice w unit of measure

The invoice in the above graphic shows how QuickBooks uses the unit of measure on an invoice. Both lines are the same product, C500. The right highlighted column shows the unit of measure. Line 1 is being sold by the case, a quantity of one. Line two is also a quantity of one, but is being sold by the each.

The each price of the C500 product is $133. To arrive at the $3192 price in line 1, QuickBooks takes the each price and multiplies it by the number in a case, 24.

Hector Garcia, CPA
Certified Advanced QuickBooks ProAdvisor
12401 Orange Drive #136
Davie, FL 33330


Hector Garcia

Hector Garcia

Hector Garcia is a CPA and QuickBooks Consultant.

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