Minimum Version Required: 24.01
Pre-Conditions
Case Equivalents must be configured in the Case Equivalents table
Steps
Case Equivalent Definition:
A Case Equivalent (CE) is a standard unit used in sales to measure the total volume of a product sold, rather than just the number of individual items. This allows for a more accurate comparison of sales when products are sold in various sizes. For example, in the beer industry, a standard case is often defined as 288 ounces, and different packaging sizes are converted to this equivalent.
Example Breakdown:
Let's look at how Case Equivalents are used to compare beer sales for Brand A:
Standard Case: We know that one standard case of Brand A is equal to 288 ounces. This is our base unit for comparison.
Salesman X's Sales: Salesman X sold 10 cases of Brand A.
-Since one case equals one case equivalent, Salesman X sold 10 Case Equivalents.
Salesman Y's Sales: Salesman Y sold 4 half-barrel kegs of Brand A.
-One half-barrel keg contains approximately 1,984 ounces of beer.
-To find out how many case equivalents that is, we divide the keg's ounces by the ounces in a standard case: 1984 ounces / 288 ounces/case = approximately 6.88 case equivalents per keg.
-Since Salesman Y sold 4 kegs, his total case equivalents are: 4 kegs * 6.88 case equivalents/keg = 27.52 Case Equivalents (often rounded to 27.55).
In Summary:
Using Case Equivalents, we can see that even though Salesman X sold more individual packages (10 cases), Salesman Y sold significantly more beer in terms of total volume (27.55 case equivalents) because kegs contain a much larger quantity than cases. This standardized measurement provides a clearer picture of overall sales performance.
Best Practices
The case equivalents table should be configured as broadly as possible using the standard package size in ounces for a group of products.