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What is the difference between a Compound Unit and an Alternate Unit ? @ Tally.ERP9


What is the difference between a Compound Unit and an Alternate Unit?


A Compound Unit is a relation between two Simple Units or one simple and one compound unit, whereas Alternate Units are individual units similar to independent units which are used instead of the primary unit.

Alternate units are capable of defining a relationship between two simple units, one simple and one compound unit or 2 Compound Units.  One of the scenarios wherein Alternate Unit is used is when the Item is bought in one UOM and sold in another UOM Eg. Pencils could be bought in Boxes and sold in pieces.

Compound units are usually used when the definition is predefined eg. 1kg=1000g. However, the user can use it at his discretion.

Compound Unit

Alternative Unit

Once you define the units of measure for compound units, it cannot be separated. For ex: 1 Kgs = 1000 grms. We cannot define as 1 kg = 900 gms. Here UOMs are joined together.

Here UOMs are separated. You may define and change as required i.e the conversion factor can be different for different items and vouchers.

Compound unit is not parallel

Alternate units are parallel to each other

Conversion is defined at the compound unit level. For eg. While creating the compound unit if it is defined that 1box=10nos, then this remains constant throughout, whether used in different stock items or in vouchers etc.

But alternative units are flexible where it can be converted at any point of time. Eg. For Item A, 1 box=10 nos and for Item B, 1box=12 nos. It can also be defined in the voucher level irrespective of the conversion specified in the Item Master. i.e For Item A 1box=10 nos is specified in the item master, however, at the voucher level it can be defined as “1box=5nos”.

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