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When i change a product's purchase UoM to kilo (kg) it changes back to unit. It doesn't allow me to change any product purchase UoM to kg. I can change to any other UoM, but not kg. Is this default behavior?

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The product's default Unit of Measure and the purchase Unit of Measure must be in the same UoM category. For example, you will be able to select kg as the purchase UoM only if the default UoM is in the "Weight" category.

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That is weird. For example. I buy plastic bags in Kilos, and i deliver them in units. I have no idea how many plastic bags there are in the 2kg package i buy. This should be changed.

The UoM's are used for automatic conversion from one UoM to another. Conversion ratios can be defined only when the UoMs are in the same category. For example, you can define a ratio to convert from 1 kg to gms or 1 ton to kgs, etc.

In your case, you will not be able to define a conversion ratio from a 1 kg package to the number of plastic bags in units/pcs. The system will not be able to handle the conversion under such situations since the bag count will vary from one package to another.

In such scenarios, you will need to define UoM based on the number of bags in the package for the system to be able to keep a track of the inventory for you.

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