> For the complete documentation index, see [llms.txt](https://kb.logicerp.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://kb.logicerp.com/logic-erp-learning-hub-tutorials-and-best-practices/order-processing/purchase-order/po-configuration/default-rate-in.md).
# Default Rate In
**YouTube:** [How to Configure Default Conversion Factor for Rates in Purchase Orders?](https://youtu.be/ZWSEAuXXvKg)
## How to Configure Default Conversion Factor for Rates in Purchase Orders?
In this tutorial, we will learn how to configure the **Default Rate In** option in Purchase Order Configuration. This feature allows the system to automatically display item rates based on different item conversion factors such as Units, Item CF1, and Item CF2, ensuring that rates are picked according to the desired inventory unit of measurement.
***
### Objective of This Feature
* Display rates according to the required conversion factor.
* Simplify purchase order entry.
* Eliminate manual rate calculations.
* Support multi-level packaging structures.
* Improve pricing accuracy during procurement.
***
### Access to Purchase Order Configuration
* Open the **Purchase Order Configuration** window.
* Navigate to the **General Settings** section.
* Locate the option labeled as:
> **"Default Rate In"**
* This option provides a dropdown list containing various item conversion factors.
* The system automatically picks and displays item rates according to the selected conversion factor.
***
### Option 1: Units
* Select **Units** in the **Default Rate In** dropdown.
* Save the configuration.
* **Note:** Please note that along with this option, you also need to update the **"Pick Unit/Pack from"** setting.
#### Implement the Functionality
* Initiate a New Purchase Order.
* Select the Supplier.
* Proceed to the Item Details section.
* Enter or scan an Item.
**Result**
* The system displays the rate on a **per-unit basis**.
**For example:**
* If an item rate is maintained for a larger packing quantity, the software automatically calculates and displays the rate for a single unit.
This is useful when purchases are managed at the unit level.
***
### Option 2: Item CF1
* Return to the Configuration window.
* Select **Item CF1** in the **Default Rate In** option.
* Save the configuration.
#### Implement the Functionality
* Create a New Purchase Order.
* Enter the same Item.
**Result**
* The system now displays the rate according to the **Item CF1 conversion factor**.
**For example:**
* One Box = 150 Tablets.
* If CF1 represents a Box, the system displays the rate for the complete Box instead of a single Tablet.
This allows purchasing and pricing at the Box level.
***
### Option 3: Item CF2
* Return to the Configuration window.
* Select **Item CF2** in the **Default Rate In** option.
* Save the configuration.
#### Implement the Functionality
* Initiate a New Purchase Order.
* Enter the Item.
**Result**
* The system displays the rate according to the **Item CF2 conversion factor**.
For example:
* If CF2 represents a Strip, the Purchase Order will display the rate per Strip.
This enables purchasing and rate management according to the secondary conversion factor defined for the item.
***
### Example of Conversion Factor Hierarchy
| Conversion Factor | Example Unit | Rate Displayed As |
| ----------------- | ------------ | ----------------- |
| Units | Tablet | Rate per Tablet |
| Item CF1 | Box | Rate per Box |
| Item CF2 | Strip | Rate per Strip |
***
### Key Benefits
* Supports multiple packaging levels.
* Automatically calculates rates according to selected conversion factors.
* Reduces manual calculations.
* Improves purchase order accuracy.
* Provides flexibility for different purchasing units.
***
### Best Practice Tips
* Ensure Item Conversion Factors are properly defined in the Item Master.
* Select the conversion factor that matches your purchasing process.
* Verify rates after changing the Default Rate In setting.
* Use CF1 and CF2 when purchasing items in bulk packaging formats.
***
### Final Outcome
The **Default Rate In** option allows Logic ERP to automatically display item rates according to the selected conversion factor such as **Units**, **Item CF1**, or **Item CF2**. This ensures accurate pricing, simplifies purchase order creation, and supports businesses that purchase items in multiple packaging units such as tablets, strips, boxes, cartons, or other conversion-based quantities.
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