Units of Measure:

Set up packages
SAP Business One Version 9.3

PUBLIC

PUBLIC

Welcome to the topic on setting up packages.

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 Objectives

At the end of this topic, you will be able to:

 Set up automatic calculations for the type and quantity of
package materials to use when shipping or receiving an item

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In this topic, you will learn how to set up automatic calculations for the type and amount
of package materials to use when shipping or receiving an item. You will also see how to automatically
create a packing slip showing the contents of the packages in a delivery.

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 Business Scenario

OEC Computers purchases paper in pallets and sells paper with or

without a package.

When paper is sold in large quantities, the warehouse team packs

paper in boxes.

We want to set up automatic calculation for packing materials for

paper in order to speed up the process.

Additionally, we want to ensure correct packing slips are

automatically created for our items in sales and purchasing.

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OEC Computers purchases paper in pallets and sells paper with or without a package.

When paper is sold in large quantities, the warehouse team packs paper in boxes.

We want to set up automatic calculation for packing materials for paper in order to speed up the
process.

Additionally, we want to ensure correct packing slips are automatically created for our items in sales
and purchasing.

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 Steps to Set Up Packaging

1 Set up global package types Inventory Setup

Item Master
2 Assign a unit of measure group to the item Data

Set up the packaging in the item for each Item Master

3 unit of measure Data

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Let’s look at the steps to set up packaging by unit of measure for an item.
1. Set up global package types. This is done in the Inventory Setup
menu.
2. Assign a unit of measure group to the item (How to set up unit of
measure groups for items was covered in an earlier course topic.)
3. Set up packaging in the item for each unit of measure. You can set up
packaging for sales from a button on the Sales Data tab and for
purchasing from a button on the Purchasing Data tab.

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 1. Set up Package Type

Administration > Setup > Inventory > Package Types

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The first step is to set up the package types that you will use globally.
The menu path for the package setup window is shown in the graphic.
For each package type, enter a name and its dimensions. If dimensions
have also been entered for each unit of measure, entering package
dimensions will enable the system to calculate the number of units for
each specific package.
For our business example, paper is bought on pallets. When the paper is
sold, large quantities are shipped either in boxes, containers or on
pallets.
As we see in our graphic, dimensions for length, width, height, volume
and weight have been entered for each of the package types used for
paper products.

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 Using weight in a package type

An empty box weighs 0.5 kg

A box containing 6 units of 6-Packs weighs

60.5 kg

A box containing 5 tablets weighs 6 kg

The weight listed for a package type can refer to gross weight including its contents
or to the net package weight without contents.

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The weight listed for a package type can either refer to the gross weight
including its contents or the net package weight without its contents. This
gives you the flexibility to use the weight column based on your business
needs.
When deciding how to use this field you should consider whether you
plan to use this value to calculate the number of units that can fit into a
package. If you want this data to be the default value for the calculation
of the number of units in each package, you should refer to the weight as
the gross weight available for this package.
The disadvantage of using the gross weight is that the package definition
will need to be limited to items that share the same weight for the same
volume. If you plan to use the package type for many items that vary in
weight, then you will not want to use a default gross weight for the item.

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 Step 2: Assign the UoM Group to an Item

Paper Unit of Measure Group Item Master Data

Pack = 21x30x4 cm Printer Paper White

Small Pack = 0.5 Pack

6-Pack = 6 Pack
Carton = 24 Pack Packaging
by UoM
Pallet = 48 Pack

Once the unit of measure group is assigned to an item master record, you can take the
next step to set up packaging for each unit of measure

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The second step in setting up automatic package selection for an item, is

to assign a units of measure group to an item.
You can assign a unit of measure group to an item manually or have the
unit of measure group default into an item from item categories.
You also have a global option of having all the units in the group available
in the item rather than having to choose which units of measure you
would like to use for the item. This is controlled by the Auto add All UoM
Group Definitions checkbox in General Settings. If this checkbox is not
selected, then you need to add the units from the group individually in an
item by using the Add Row button. Even if you have added all the units
as a default, you can also use the context menu to remove unwanted
units of measure for an item.
The details on how to set up a unit of measure group are covered in
another course topic “Set up Units of Measure”.
Once the unit of measure group is assigned to an item master record,
you can take the next step to set up packaging for each unit of measure.
 Step 3 – Set up packaging in the item

Set up packaging for:

Sales
Purchasing

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There are two types of packaging that you can set up for an item:
packages for sales and packages for purchasing.
To set up packages for items you sell to customers, choose the Sales
Data tab and choose the button to the right of the Package Type field.
To set up the types of packages you use for receiving items, go to the
Purchasing Data tab and choose the button to the right of the Package
Type field.
These buttons will open a window where you can set up a relationship
between each unit of measure and specific package types based on the
number of units needed and dimensions of those units.
The type of packages used in sales can be different from the type of
packages used in purchasing. In our business example, OEC
Computers receives paper from its suppliers on a pallet. When they sell
paper to customers, it may be sold without packages, in boxes, in
containers or on pallets.

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 Step 3 Details: Item Sales Data - Sales Unit of Measure

From the Item Master Data – Sales Data tab

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For our example, we will look at sales windows, but keep in mind that
packages for sales and purchasing are set up in the same way.
From the Sales Data tab, the button leads you to the Sales UoM and
Package Types window.
This window is where you define the default units of measure, their
measurements and package data for each unit.
On the left side of the graphic, we see the left side of the Sales UoM and
Package Types window. Here we see the units of measure.
One of the units of measure can be set as the default for sales. In our
example, the most popular unit for this paper item is the 6-pack so it has
been set as the unit default for sales. We see that the 6-pack unit is
highlighted and appears on Sales Data tab along with its ratio to the
inventory unit of measure (the pack).
When you choose a unit, the dimensions for that unit are displayed at the
bottom of the window. These measurements are drawn from the global
Unit of Measure setup and can be changed manually.

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 Step 3 Details: Item Sales Data – Package Type

From the Item Master Data – Sales Data tab

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▪Now we see the right side of Sales UoM and Package Types window.
▪On this side we enter the package information for each item.
▪You have the option of having all package types appear in this window
as a default. This option is controlled by the Auto. add All Package
Definitions check box in General Settings.
▪This can be a very useful setting if you do not have a large number of
package types. However if you have a large number of package types
and do not select this checkbox, then you can add the package types
individually by using the Add Row button. Of course you always have an
option to delete package types using the context menu.
▪You can set a package type as the default for when you sell the item.
The default package type is copied to the Package Type field in the Sales
Data tab.
▪When you click on a package type, you can see and define its
dimensions. The dimensions are drawn by default from the Package
Types Setup but they can be changed manually.

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 Step 3 Details: Quantity per Package

A “Box” package can contain

4 “6-Packs”

60 cm
6-pack 6-pack
6-pack 6-pack

Box

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▪Here we see the full window for the Sales UoM and Package Types
window. We can see the connection between the units of measure and
the packages and what the system uses to calculate the quantity per
package. The system uses the volume dimensions of the package and
of the unit of measure to determine how many units will fit in a package.
The result of the calculation appears in the Quantity per Package field.
▪Notice the dimensions of the 6-Pack unit. It is 30 centimeters long and
21 centimeters wide.
▪Now, look at the dimensions of the Box Package. It is 60 centimeters
long and 42 centimeters wide.
▪The 6-Pack UoM and the Box package are the same height. This
means that 2 6-Pack units can fit in the Box length and another 2 6-Pack
units can fit in the Box width. This means a total of 4 6-pack units can fit
in the box since the height is the same.

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 Calculating Packages in Documents

8 “6-Packs” multiplied by 6 items per unit

3 equals 48 packs

1
8 “6-Packs”
(4 “6-packs” in 1 box)
equals 2 boxes

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Let’s look in detail at how the number of packages is calculated

automatically by the system.
First notice the Quantity and Number of Packages fields. The Number of
Packages field shows a calculation of the quantity entered in the row,
divided by the quantity per package.
We can see where that number comes from by looking at the Sales UoM
and Package Types window in the bottom left of the graphic. We see that
the Box is default because it is highlighted in bold. The Quantity per
Package field shows that the box can contain 4 of the default unit (the 6-
pack).
Therefore, if we sell 8 6-packs of paper, then we need 2 boxes.
The inventory isn’t counted by the sales unit of 6-pack. Instead the
inventory unit is a pack. We can see in the upper right of the graphic the
total number of inventory units is calculated. The Quantity (Inventory Unit
of Measure) field shows the sales quantity multiplied by the items per
unit.
In our example, the items per unit defined in the Sales/ Purchasing UoM
and Package Type window, is 6. This means 1 6-Pack unit equals 6
packs. The Quantity (inventory Unit of Measure) field shows the total
quantity of packs. Therefore the system calculates: a quantity of 8
multiplied by 6 inventory units equals 48 inventory units

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 Useful tips

▪ It is always possible to change dimensions of units and package

types within the item sales data or purchasing data

▪ If volume dimensions are missing, then the Qty per Package field
in the sales and purchasing package type windows in the Item
Master Data record will be calculated according to weight.

▪ If you want to calculate by weight, then remember to use the gross

weight of a fully loaded package in the package type definition.

▪ The Qty per Packaging field can only contain integers and the
result of a calculation is always rounded down.

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It is always possible to change dimensions of units and package types

within the item sales data or purchasing data
If volume dimensions are missing, then the Quantity per Package field in
the sales and purchasing package type windows in the Item Master Data
record will be calculated according to weight. If you want to calculate by
weight, then remember to use the gross weight of a fully loaded package
in the package type definition.
The Quantity per Packaging field can only contain integers and the result
of a calculation is always rounded down. In our example the box can
hold 4 six-packs based on its size. If the box size could have held only 3-
1/2 six packs based on the dimensions, it would have rounded down to 3.
Furthermore, if the calculation of the package quantity for a specific unit
of measure is less than 1, then no value will appear in the field.

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 Automatic Creation of a Packing Slip

System initialization  Document Settings  Per Document tab

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SAP Business One can create an automatic packing slip for deliveries
and A/R invoices made for multiple unit of measure items.
Set up this option in the Document Settings window on the Per
Document tab.
In the Document field, choose Delivery or A/R Invoice, then select the
box Recommend Packaging Based on Item Master Data.

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 Packing Slip Contents

15 kg X 4 units in a Box = 60 kg

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Here is a look at a packing slip that was automatically created for a

delivery that includes packages.
The data is drawn from the Sales UoM and Package Type window
combined with the data entered in the delivery.
In our business example, we issued a delivery for 8 units of 6-Pack.
According to the definitions made in the Sales UoM and Package Type
window, 4 units of 6-Pack fit into 1 box. This means, we need 2 boxes to
deliver 8 units.
The total weight is a calculation of the weight per unit times the number
of units in each package. In this example, 1 6-Pack unit weighs 15 kg
and 1 box contains 4 units. This means that the total weight of the box is
60 kg.
When we choose a row in the list of existing packages, we can view the
items packed in the box at the bottom right of the window.

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 Summary

Here are some key points:

▪ There are three steps to set up packages based on the units of measure.
1. Set up global package types. This is done in the Inventory Setup menu.
2. Assign a unit of measure group to the item
3. Set up packages in the item master record for each unit of measure.
▪ You have the option of having all package types appear in this window as a default.
▪ You can set default package types for sales and for purchasing.
▪ The system uses the volume dimensions of the package and of the unit of measure to
determine automatically how many units will fit in a package
▪ SAP Business One can create an automatic packing slip for deliveries and A/R invoices made
for multiple unit of measure items.

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• There are three steps to set up packages for selling or purchasing items based on the units of
measure.
1. Set up global package types. This is done in the Inventory Setup menu.
2. Assign a unit of measure group to the item (How to set up unit of measure groups for items was
covered in an earlier course topic.)
3. Set up packaging in the item for each unit of measure. You can set up packaging for sales from
a button on the Sales Data tab and for purchasing from a button on the Purchasing Data tab.
▪ You have the option of having all package types appear in this window as a default. This option is
controlled by the Auto. add All Package Definitions check box in General Settings. This can be a
very useful setting if you do not have a large number of package types.
▪ You can set default package types for sales and for purchasing.
▪ The system uses the volume dimensions of the package and of the unit of measure to determine
automatically how many units will fit in a package. The result of the calculation is shown in the
Quantity per Package field in the Sales Uom and Package Types and Purchasing Uom and
Package Types windows in the Item Master Data record. If volume dimensions are missing, then
the Quantity per Package field will be calculated according to weight.
▪ SAP Business One can create an automatic packing slip for deliveries and A/R invoices made for
multiple unit of measure items. This setting is maintained on the Document Settings tabs for
deliveries and A/R invoices.

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