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In order to track our costing for our inventory correctly, QuickBooks gives us a wonderful feature that is called Units of Measures. Our Units of Measure will allow us to convert our cases to per-piece units and vice-versa. If we go to our List, you will note that right under our Item List, we'll see Unit of Measure. When I go into the Set List, it allows me to define each of the Units of Measurements that I use within my company. For instance, let's take the example of each to a case or a dozen. I'll simply right click and let's edit that unit of measurement. Here you will note that I defined my base unit, in this case, per piece or each. I can assign an abbreviation to it and then define how my units will relate within my organization. For instance, you will notice that there are related units of dozen and case. In this example, I may be able to purchase my items per case and get a wonderful discount. I do not sell them per case, however, I sell them in increments of one unit each. This now allows me to purchase my items per case and then sell them per piece. I can also define the standard unit of measurement for purchasing, for sales and for shipping. In each particular instance, I can change that as necessary and keep in mind, this is simply a default unit which means at any time on any transaction I can change it. Let's close out of our Unit of Measurement, let's return to our List and back down to our Item List. In our Item List, I'm going to go under our Hardware and simply select our brass hinges. You will notice while setting up the brass hinges, the unit of measure components was automatically placed in. In this particular case, it's each to case. In other words, we purchase by case but convert it into an individual unit when we're selling it. This allows us to not worry about how to do all of the calculations on purchase orders and on invoices. If I go into my purchasing center by pretending that I'm actually going to create a purchase order, you will notice on each purchase order the Unit of Measurement Line appears. When I select an appropriate item, you will now see that I can automatically select the appropriate unit of measurement. You'll notice also that it's very clearly stated for us. We can see that our purchase is normally in one case and it would be converted to two dozen or we can change one case to one dozen, in which case it will be remembered permanently. There's a great deal of flexibility with these Units of Measurements and it really aids in a very powerful and accurate Cost Accounting System.