> 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/sale-order/so-configuration/rate-on-basis-of.md).
# Rate on Basis of
**YouTube:** [How to Configure Rates on a Per Pack or Per Unit Basis in Sales Orders?](https://youtu.be/kOT2yFPEaOQ)
## How to Configure Rates on a Per Pack or Per Unit Basis in Sales Orders?
In this tutorial, we will learn how to configure the **Rate on the Basis Of** option in the Sales Order Configuration. This feature allows you to calculate item rates either on a **Pack** basis or on a **Unit** basis, depending on your business requirements.
***
### Objective of This Feature
* Configure item rates on a Pack or Unit basis.
* Support different sales and packaging methods.
* Automate rate calculation based on the selected mode.
* Ensure accurate pricing during Sales Order entry.
* Improve flexibility in quantity and rate management.
***
### Open Sales Order Configuration
* Open the **Sales Order Configuration** window.
* Navigate to the **Other Options** section.
* Locate the option labeled as:
> **"Rate on Basis of"**
This option provides two choices:
* **Rate Per Pack**
* **Rate Per Unit**
***
### Option 1: Rate Per Pack
When **Rate Per Pack** is selected, the system considers the rate of the **entire pack or box**.
**Configuration**
* Select **Rate Per Pack**.
* Configure the appropriate **CF for Units Per Pack** based on the conversion factor defined in the Item Master.
* Save the configuration.
**Observe the Functionality**
* Initiate a **New Sales Order**.
* Select an Item.
**Result**
The system automatically picks the **rate of the complete pack or box** for the selected item.
The item quantity is entered according to the selected **Units Per Pack** conversion factor.
***
### Option 2: Rate Per Unit
When **Rate Per Unit** is selected, the system calculates the item rate for each individual unit.
**Configuration**
* Return to the configuration window.
* Change **Rate On the Basis Of** to **Rate Per Unit**.
* Set **CF for Units Per Pack** to **Units**.
* Save the configuration.
**Observe the Functionality**
* Initiate a **New Sales Order**.
* Select the same Item.
**Result**
* The system automatically calculates and displays the **rate per individual unit** instead of the complete pack.
* The quantity is entered in individual units, and pricing is calculated accordingly.
***
### Verify Conversion Factor Settings
To review the conversion factors used for the Item:
* Open **Setup Item Multiple Packs**.
* Search and select the required Item.
* Navigate to the **Pack Details** section.
**Result**
Here, you can review all the conversion factors and **Units Per Pack** values defined for the Item. The system uses these settings to calculate quantities and rates based on the selected configuration.
***
### Key Benefits
* Supports both pack-wise and unit-wise pricing.
* Automates rate calculation based on business requirements.
* Improves pricing accuracy.
* Simplifies sales order processing.
* Provides flexibility for different packaging structures.
***
### Best Practice Tips
* Use **Rate Per Pack** when items are sold as complete packs or boxes.
* Use **Rate Per Unit** when items are sold individually.
* Ensure the appropriate **CF for Units Per Pack** is configured before creating Sales Orders.
* Verify Item Master conversion factors to ensure accurate quantity and rate calculations.
***
### Final Outcome
The **Rate On the Basis Of** feature allows Logic ERP to calculate item rates either on a **Pack** basis or a **Unit** basis. By selecting the appropriate pricing method and conversion factor, the system automatically applies the correct rate during Sales Order entry, ensuring accurate pricing and flexible order processing.
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