Minimum Version Required: 25.01
Pre-Conditions
What are Case Equivalents?
Case Equivalents (often abbreviated as "Case Equiv" or "CE") are a standardized unit of volume used in various industries, particularly those dealing with the sale and distribution of goods that come in different sizes and packaging. Instead of simply counting the number of physical cases, case equivalents provide a common metric to measure and compare the total volume of products sold, shipped, or inventoried.
Think of it as a way to "normalize" different product sizes into a standard "case" unit for easier analysis and reporting.
Why Use Case Equivalents?
Using case equivalents offers several benefits:
Standardized Measurement: It allows for the comparison of sales or volumes across products that come in different case sizes or configurations. For example, comparing the volume of sales of a product sold in cases of 12 units to another sold in cases of 24 units becomes straightforward.
Accurate Volume Tracking: It provides a more accurate representation of the total volume being moved or sold, which is crucial for logistics, warehousing, and supply chain management.
Consistent Reporting: It enables consistent reporting across different product lines and sales channels, providing a unified view of overall business activity.
Pricing and Promotions: It can be used as a basis for pricing strategies, promotional offers (e.g., discounts based on equivalent case volume), and sales targets.
Inventory Management: It helps in managing inventory levels by providing a consistent unit for tracking overall product volume, regardless of the actual packaging.
Steps
"Case Equivalents" (Case Equivs) represent the volume of a product, not necessarily a direct one-to-one count of the physical cases. The system uses a defined standard volume for a "case equivalent" of a specific product or product category and then converts the actual volume sold (based on the number of physical cases and the volume per case) into this standardized unit.
Calculation Steps:
Define Standard Case Equivalent Volume: For each product or potentially product category within Encompass, a standard volume is defined as equal to one case equivalent. This volume could be in units (e.g., 24 items), weight (e.g., in pounds or kilograms), or fluid ounces/milliliters. Standard volume calculations for case equivs live on the case equivs table where you can define a case equiv type and the amount of volume for a standard 'case'.
Define Volume per Physical Case: For each product, Encompass stores the volume contained in one physical case. This could be the number of units per case multiplied by the volume per unit, or a total volume for the entire case. This is set based on the package of the product.
Calculate Total Volume Sold: When a sale occurs, the number of physical cases sold is multiplied by the volume per physical case to determine the total volume of that product sold.
Total Volume = Number of Physical Cases Sold × Volume per Physical Case
Example: 2 cases × 152.163102 ounces/case = 304.326204 ounces
Convert Total Volume to Case Equivalents: The total volume sold is then divided by the defined standard case equivalent volume for that product (or product category) to arrive at the Case Equiv value.
Case Equivalents = Total Volume Sold / Standard Case Equivalent Volume
In the example: 304.326204 ounces / 304.3260 ounces/case equiv ≈ 1 case equiv
Therefore, the Case Equivalent value reflects how many "standard volume units" were sold, even if the product was packaged and sold in a different physical case size.
Fields And Definitions
Case Equivalent (Case Equiv): A standardized unit representing the volume of a product, used for consistent reporting and comparison across different packaging sizes. It may not always equal one physical case.
Comparison Report View: A report that allows for the comparison of data, potentially showing both the number of physical cases and the calculated Case Equivalent value.
'Case Equivs' Table: A table within the system defines the standard volume or calculation rules for Case Equivalents for different products.
Best Practices
Understand that 'Case Equivalent' is a measure of volume and not necessarily a direct count of physical cases.
Familiarize yourself with the location of any 'Case Equivs' tables or definitions within the system if you have access.
When inquiring about Case Equivalents, always specify the Product ID you are asking about, as the definition can be product-specific.