Likes Likes:  0
Results 1 to 5 of 5

Thread: Cost of PO

  1. #1
    Member
    Join Date
    Jan 2009
    Location
    philippines
    Posts
    4

    Default Cost of PO

    Hello


    Could you tell me how to compute for cost of PO?
    What should be considered in computing for this?

    I sometimes process PO in SAP with USD 200 as a total value which could have been more practical if this item was bought via cash advance.

    In order for me to support my justification, I have to at least come up of how much is the cost of PO.

    Here are the things to do before I could make a PO:

    End-user create a PR
    Line Manager releases PR
    Buyer creates PO in SAP and sends PO to supplier (fax or email).

    Thanks.

  2. #2
    Forum Manager Starbucks Junkie's Avatar
    Join Date
    Nov 2006
    Location
    West Midlands, (Formally an Essex Barrow Boy)
    Posts
    1,149

    Default Re: Cost of PO

    Quote Originally Posted by sarie View Post
    Hello


    Could you tell me how to compute for cost of PO?
    What should be considered in computing for this?

    I sometimes process PO in SAP with USD 200 as a total value which could have been more practical if this item was bought via cash advance.

    In order for me to support my justification, I have to at least come up of how much is the cost of PO.

    Here are the things to do before I could make a PO:

    End-user create a PR
    Line Manager releases PR
    Buyer creates PO in SAP and sends PO to supplier (fax or email).

    Thanks.
    Sarie,

    I would say that first you need to understand how long each one of the listed processes takes from end to end, establish the hourly rate of the level of individual who undertakes each task, put a small factor in for Paper, and ink, and this should give you the cost of creating a PO.

    Starbucks Junkie
    Happy Coffee and Panini day.
    Roll on Christmas..mmmm.. Gingerbread Latte



    I am proud to work for Europe's leading Single Price Retailer

    Poundland Retail
    Dealz (Part of the Poundland Family)

    I am pleased to be associated with Himsworth Consultancy - The Supply Chain Performance Improvement Specialists
    Himsworth Consultancy

  3. #3
    Member
    Join Date
    Jan 2009
    Location
    philippines
    Posts
    4

    Default Re: Cost of PO

    Hi Starbucks Junkie

    Thanks so much for the inputs.. appreciate it a lot!

    Take Care

  4. #4
    Member Plus
    Join Date
    Dec 2016
    Location
    Philippines
    Posts
    64

    Default Re: Cost of PO

    Except when the amount is way too low, most companies I've worked with require both PR and PO preparation as this establishes control,responsibility, and accountability for the purchase. A cash advance would still need to be supported by a PR approved by the department head of the requesting company. Cash payment is usually resorted to only on cases where the supplier does not accept other forms of payment besides cash but it doesn't eliminate the need for PR and/or POs.

  5. #5
    Regular Member
    Join Date
    Dec 2016
    Location
    Nakhon Ratchasima
    Posts
    12

    Default Re: Cost of PO


Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •