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When items are received, Paladin uses supplier ratio to calculate an item’s stock on hand (SOH), cost, and retail price. It is also used to order the correct quantity from a supplier.

A supplier ratio, or a reverse supplier ratio, is required when you buy items from your supplier in different quantities, sizes, or dimensions than you sell them.

## How to add a supplier ratio to an item

A supplier ratio is required when you buy an item from your supplier in a different quantity or dimension than you sell the item.

Examples:

• You buy chain, rope, and wire by the spool, but sell it by the foot.
• You buy packages of light bulbs by the case, but sell the packages individually.
 Supplier sells item by One unit from the supplier equals Size/quantity sold in store Order quantity (sellable units) Supplier ratio Spool 250 feet of wire One foot 250 feet 1/250 feet = 0.004 Stick 10 feet of pipe One foot 10 feet 1/10 feet = 0.1 Bundle of 10 sticks (10 sticks x 10 feet = 100) 10 feet of pipe One foot 100 feet 1/100 feet = 0.01
1. If you don’t know the supplier ratio and order quantity for the item, calculate:
Supplier ratio = 1 ÷ order quantity
2. In Paladin, on the top ribbon, select the Inventory module.
3. Enter the part number you want to edit in the Part # box.
4. Press Enter.
5. Select the Order Control tab.
6. In the Stock Information pane, in the Order Qty box, enter the order quantity, then click the lock icon to prevent further changes.
7. In the Suppliers pane, in the Sup. Ratio box, enter the supplier ratio, then click the lock icon to prevent further changes.
8. Select the Pricing tab.
9. In the Item Cost pane, for the item unit that you sell, enter the Avg Cost and the Mkt Cost. Paladin will use the supplier ratio to calculate the equivalent cost for one supplier unit.
10. In the Pricing Levels pane, on line 1, do the following:
• In the Quantity column, enter the smallest size/quantity sold in the store, which is typically by the “each.”
• In the Sales Price column, enter the retail price for the smallest size/quantity.
11. To sell a larger quantity for a reduced price (quantity price break), in line 2, in the Quantity column, enter the quantity, and in the Sale Price column, enter the quantity sale price. For additional quantity discounts, use lines 3 and 4.
12. For each quantity price break that you entered in the Ref column, enter the reference margin for the quantity break level. Typically, the reference margin will be equal to the amount in the Margin column or Mkt Margin column.

Note: If you do not enter the reference margins, the following message appears: Supplier ratio settings are incomplete. To add the reference margins, click OK, then enter the amounts. To move forward without adding margins, click Cancel.

1. Depending on the store type, do one of the following:
• Single-store: Make sure the Pricing Levels pane is not locked (padlock is open). In single-stores, if the Pricing Levels pane is locked, EDI and manual receiving processes cannot apply the reference margin or update the retail price.
• Multi-store: Make sure the Pricing Levels pane is locked (padlock is closed). In multi-stores, the reference margin is only applied if the Pricing Levels padlock is closed (locked). If the Pricing Level pane is not locked (padlock is open), the reference margin is ignored, and the retail price is updated.
2. Click F12 Save.

## How to add a reverse supplier ratio to an item

Occasionally, items are sold in larger quantities than they are bought. This is a reverse supplier ratio.

Example: You buy cans of spray paint individually from the supplier, but sell them in bundles of two.

 Supplier sells item by One unit from the supplier equals Size/quantity sold in store Order quantity (sell-able units) Reverse supplier ratio Bottle 1 bottle 2 can bundle 2 1
2. Select the Invoice (Store) tab.
3. Check Default to Largest Pricing Quantity when added to Invoices.
4. Click Save, then click Close.
5. On the top ribbon of Paladin, select the Inventory module.
6. On the Inventory tab, enter the Part # that you want to edit.
7. Click the Order Control tab.
8. In the Stock Information pane, in the Order Qty box, enter the number of supplier units that you sell as one unit, then click the lock icon to prevent further changes.
9. In the Suppliers pane, in the Sup. Ratio box, enter 1, then click the lock icon to prevent further changes.
10. Click the Pricing tab.
11. In the Item Cost pane, for the item unit that you sell, enter the Avg Cost and the Mkt Cost. Paladin will use the supplier ratio to calculate the equivalent cost for one supplier unit.
12. In the Pricing Levels pane, on line 1, in the Sale Price column, enter the retail price for the item unit that you sell. Set up a reference margin.
13. On line 2, in the Quantity column, enter the number of supplier units in your item unit, and in the Sale Price column, enter the same Sale Price that you entered in line 1.

Note: When you scan the item at checkout, the quantity and price will default to the values in line 2 because you set the Default to Largest Pricing Quantity when added to Invoices option in setup.

1. If you want to apply a rounding scheme to automatically adjust prices to always end in values, such as .99, refer to: Rounding schemes.
2. Click Save.

## How to create a purchase order for an item that has a supplier ratio

When you create a purchase order for an inventory item that has a supplier ratio, specify the order amount in the units that you use to sell the item. For example, if you sell an item in your store by the foot, but you purchase the item from the supplier by the spool, you would enter the number of feet you want to order. The supplier ratio will take care of the conversion, and the purchase order sent to the supplier will show how many spools you need.

1. In Paladin, on the top ribbon, select the PO module.
2. Enter or select a supplier from the Supplier list.
3. In the Part Number box, enter the part number that you want to order, then press Enter.
4. In the item line, in the Quantity box, enter how many items that you want to order in the units that you sell them.

Example: If you sell wire in units of feet, and the supplier sells wire by the spool, specify the number of feet that you want to purchase.

1. On the bottom ribbon, click F8 Confirm PO.
2. In the Confirm PO tab, on the bottom ribbon, click F7 Print Test Copy, then verify that the order quantity that you specified was converted to the supplier’s units.

Example: If you purchase wire from the supplier in spools and sell it by the foot, verify that the final purchase order correctly converted from the number of feet to the number of spools, and that the supplier price is accurate.

Important: When submitting a PO to a supplier via email, a PDF is created that displays the unit of measurement (U/M) for that item. If the Supplier Ratio isn’t one-to-one, U/M label will not print.