At the item level you need to define conversion factor of UOM. Since the UOM for Inflow and Outflow is different, you need to define that.
Also while making BOM and Prod Order or whatever docs, you need to select correct UOM as defined at the item level to correctly reflect stock movement and reletated cost calculation.
I’ve created all my items with UOM as Unit, and the weight per use is used to define the weight UOM. And, on the Units of Measure, I’ve had created all the alternative UOMs and the convertions…