Product: Integration Basics
Units of Measure (UoM) are standardized quantities used to define how inventory items are counted, stored, bought, and sold in Electronic Data Interchange (EDI) and Enterprise Resource Planning (ERP) business systems.
When a product is listed for sale it is listed by the Quantity in which it is sold - whether that is a single can of soda that is sold individually (Each), a 12-pack bundle (Case), or the liquid weight of fluid ounces (8oz). This way a Unit of Measure allows you to know how much of something you are receiving when purchasing a particular product.
Common Unit of Measures
When handling Inventory Items you will often come across some standard Unit of Measures (UoM) that are fairly common across Business Systems and Trading Partners for most goods.
Unit of Measure (Code) | Description |
Each (EA) | A single item being sold as an individual unit (Laptop) |
Case (CS) | A bundle with a set number of items (12-pack of Beer) |
Pound (LB) | Weight-based goods (50lb bag of cement) |
Liter (LTR) | Volume based liquids (Liter of Soda) |
Ounces (OZ) | Volume based liquids (12oz Water Bottle) |
EDI Codes
When dealing with both Business Systems and Electronic Data Interchange (EDI) each Unit of Measure is often given an abbreviated Code that can be found on PO1 Segments or IT1 Segments for example.
Item 1209-S sold in Eaches (EA)
IT1*1*100*EA*15.00*PE*BP*1209-S~
Pricing, Quantity, and Unit of Measures
A Unit of Measure is used to help define the Base Price of a particular item sold. This allows everyone to know how much they are receiving and need to pay per the quantity amount.
For example if I am purchasing a single item, sold as an Each at a price of $1.29 but then see I can purchase Case Pack which bundles 12 together of the same product for 12.99 then I can determine that I can save ~$2.49 buying the Case versus 12 individual units.
Unit of Measure | Cost | Per-Unit Cost |
Each | $1.29 | $1.29 |
Case (12 Pack) | $12.99 | $1.08 |
Pricing
When handling pricing, you can understand your total since the formula is simply Price x Quantity. A Unit of Measure tells you how much of that particular product you are receiving at that Baseline Price which can often be used to provide savings when buying in bulk since a lower price per-unit can be achieved when raising the minimal quantity (through a 50lb bag or a 12-pack case) in a single Unit of Measure
Inventory Management
When dealing with Inventory Management inside of a Business System such as a Warehouse Management Software (WMS) or Enterprise Resource Planning (ERP) software you are handling Inventory Items based primarily on their Unit of Measure, how much it costs (Unit Cost) and the selling price (Unit Price).
Whether that is your Physical Product, Labor Fee, or a Rental Fee each Unit of Measure helps detail out how to properly evaluate Cost and Profit for any Goods or Services offered or purchased.
rev 5/28/2025