What's the real difference b/w Compound Units and Alternate Units?

In compound units we select first (or main) units, give the conversion factor units and then select the second (or tail) units so that we can select compound units for our stock item purchases or sales.

The Alternate Units option does the same because we give the conversion factor b/w 2 simple units in the stock item screen.

Then what is the TRUE difference between these two types of units and what is the TRUE purpose for giving these two separate but similar functions? Please explain.

2 Answer(s)


A Compound Unit is a relation between two Simple Units or one simple and one compound unit, whereas Alternate Units are individual units similar to independent units which are used instead of the primary unit.

Alternate units are capable of defining a relationship between two simple units, one simple and one compound unit or 2 Compound Units. One of the scenarios wherein Alternate Unit is used is when the Item is bought in one UOM and sold in another UOM Eg. Pencils could be bought in Boxes and sold in pieces.

Compound units are usually used when the definition is predefined eg. 1kg=1000g. However, the user can use it at his discretion.


got it! thanks aachit. very well explained.