Unit of Measures (UOMs)

UOM (Unit of Measure) is important in pricing because it defines how a product is measured or counted. In other words, UOM describes the unit in which a product is sold or consumed, and it is a critical component of determining the price of a product.

1. Defining the base unit of measure: UOM is used to define the base unit of measure for a product. For example, the base unit of measure for a product might be "each" or "license".
2. Defining the term dimension: the term dimension can be month, year, day, etc. The term dimension can also be empty if the price is a non-recurring product or service.
3. Calculating pricing based on quantity: UOM is used to calculate pricing based on the quantity of the product sold or consumed. For example, if the price of a product is $10 per license per month, then the price for 5 licenses for 12 months would be $600.
4. Offering pricing flexibility: UOM allows businesses to offer different pricing options for the same product based on the unit of measure. For example, a business might offer a discount for customers who purchase a product for an annual term versus by month. 
5. Supporting revenue recognition: UOM is important for revenue recognition because it helps to ensure that revenue is recognized correctly based on the quantity sold or consumed. By using the correct UOM, businesses can ensure that revenue is recognized accurately and in compliance with accounting standards.

The UOM is used to define a Product, Price Tag, Discount Tag, Product Bundle. It is a foundational component of Nue. You will want to create a few UOM records first before doing anything else.

Navigate to Price Builder > UOMs

A UOM can be based on two dimensions (quantity and term), or just a single dimension if there is no term dimension (this is true in non-recurring products or services).