Definition
A unit of measure is the unit in which a line item's quantity is counted and priced, such as hours, days, pieces, boxes, square feet, kilograms, or miles. Stating the unit next to the quantity and unit price removes ambiguity about what the client is paying for and how the line total was calculated.
Also called: UOM, Unit
Unit of measure in practice
Use the same unit on the quote, the purchase order, and the invoice. A mismatch, such as a PO priced per box and an invoice priced per piece, is one of the most common reasons accounts payable teams put invoices on hold.
Frequently Asked Questions
Do I need a unit of measure on every line?
It helps on any line where the quantity is not obviously a count of items, such as hours, days, weight, area, or distance. For single fixed-fee services, "1" with no unit is fine.
What should I do if the client orders in a different unit than I sell in?
Agree on one unit before work starts and use it on the quote, purchase order, and invoice. If you must convert, for example from boxes to pieces, show the conversion in the line description so accounts payable can match it.
Related terms
- Quantity Quantity is the number of units of a product or service billed on an invoice line, such as 12 hours, 500 brochures, or 3 days.
- Unit price The unit price is the price charged for one unit of a product or service on an invoice line, such as the hourly rate, price per item, or daily fee.
- Line item A line item is a single row on an invoice that describes one product or service, with its quantity, unit price, and line total.
- SKU A SKU, or stock keeping unit, is a code a business assigns to each distinct product or service it sells so it can track inventory, pricing, and sales.
This page is for general information only and is not legal, tax, or financial advice. Rules change and vary by location, so consult a qualified lawyer or accountant about your situation.