Savings Calculating in Purchase Order

Savings Calculating in Purchase Order

You can calculate savings item-by-item on any purchase order. To access the area where savings are calculated, click on the PurchaseOrder List menu under the Purchase Orders heading in the left menu.

On the PO List page, click on the Detailsicon under the Action column to proceed to the purchase order setup step for the respective purchase order. Calculation can be performed only for items in setup status, either for defined products or freetext products.

Calculation of Defined Product Savings

For items added from a catalog or product list, savings can be calculated by clicking on the Calculate Savings icon located at the end of the item rows under the Action column.

After clicking on the Calculate Savings icon, select the calculation method in the opened window.

Last Order Comparison: This is the savings calculation method that compares the difference between the last purchase order placed for the selected product and the purchase order currently being created.

When you select the Last Order Comparison method and click the Calculatebutton, the difference between the last purchase order and the current purchase order is automatically calculated. Information indicating that the calculation has been performed will be displayed under the Action column.

The calculated savings amount is listed as the unit price savings and the line saving amount.

Average Product Price Comparison: This is the savings calculation method that compares the difference between the average of all purchase orders placed for the selected product and the purchase order currently being created.

After selecting the calculation method, click the Calculate button. When you return to the item details page, hovering over the Calculate Savings icon will display the selected calculation method.

Savings data can be accessed under the Unit Price Savings Amount and Line Saving Amount columns.

Note: To calculate the Average Product Price Comparison for items added from the product list or catalog, all past purchase orders in the Sent toSupplier status must be set to Completed status. To calculate the Last Order Comparison, the last purchase order created for the respective products must be set to Completed status.

Freetext Product Savings Calculation

After adding the product using the Add Free Text Item method, click on the CalculateSavings icon under the Action column on the opened page to access the window where the calculation will be performed.

After clicking the Calculate Savings icon, select the calculation method in the window that opens.

Calculation Method: This is the area where you select the method for calculating the savings related to the respective purchase order.

Last Order Comparison: This calculate savings method compares the difference between the last purchase order placed for the selected product and the purchase order being created.

Bid Price Comparison: If there is a different calculation method determined by the company for the selected product, this area can be used.

Average Product Price Comparison: This calculate savings method takes the average of all purchase orders placed for the selected product and compares it with the purchase order being created.

Supplier: This is the area where the supplier information for the relevant purchase order is selected.

Amount: The amount determined within the calculation methods. The difference between this amount and the freetext product amount is calculated to determine the savings.

Currency: This is the area where the currencies defined for the company are listed.

Documents: This is the area where documents and information to be uploaded for the calculate savings are entered.

After completing the relevant steps, click the Save button. When you return to the Item Information page and hover over the Calculate Savings icon, the selected calculation method will be displayed.

TheUnit Price Savings Amount represents the savings corresponding to the unit price. The Line Saving Amount represents the line savings amount for the relevant item.

In the Summary menu, the information created within the purchase order can be viewed in a general framework.

In the Summary menu, under the General Information area, the Total Purchase Order Savings for all purchase order items can be viewed.