GlossaryReviewed by Peasy Team

Inventory Unit

An inventory unit is the base unit of measure used to track an item's stock levels. In Peasy, every parent item has exactly one inventory unit that serves as the common denominator for all buying, selling, and production activities.

How It Works in Peasy

  • The inventory unit is set when you create a parent item and cannot be changed afterward
  • Buy items and sell items can use different units, but everything converts back to the inventory unit
  • For example, you might buy flour in 50 lb bags but track inventory in pounds — pounds is the inventory unit
  • Unit conversions define how buy and sell units relate to the inventory unit
  • Inventory counts and adjustments are always entered in the inventory unit

Why It Matters

The inventory unit is the single source of truth for stock levels. Without it, there would be no way to reconcile buying in cases, selling in eaches, and producing in batches. Getting the inventory unit right at item setup prevents conversion errors downstream.

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