Purchase Order Each Amount

An ‘Each Amount’ will populate for every item entered on a purchase order. The each amount is the cost of the item per unit and is used on the purchase order to calculate an estimated order amount for each item, enabling users to control their spending.

The Each Amount on a purchase order is not based on the current purchase item value. Purchase orders are vendor item-specific because different vendor items for the same product may have different units of measure, which can affect purchase prices.  Because purchase orders are vendor item specific, their each amounts derive from vendor item cost sources.

There are three methods that determine costs for vendor items.  The system applies the methods in the following order of priority:

1. Integrated order guide pricing

2. Contract Pricing

3. Vendor Item Price

Integrated Order Guide Pricing

Integrated order guide pricing takes the highest priority.

Certain vendors offer integration for order guides. View the vendor integration list to see which vendors offer order guide integration.

With this integration, order guides are given from the vendor to R365. Order guides provide current item availability and the most up to date pricing. Read more about the order guide vendor integration.

Contract Pricing

Contract pricing takes second priority when integrated order guide pricing is not available.

Vendor item records have fields available to include a Contract Price and/or a Split Contract Price. These are prices agreed upon between the vendor and customer. Entering these prices on the vendor item record helps keep track of contract pricing for specific vendor items. The Contract Price will populate as the Each Amount on purchase orders.

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Vendor Item Price

The base level, and most common, cost method for vendor items is the vendor item price or split price. This method will be used when there is no order guide integration and no contract price or split contract price.

R365 updates the vendor item price whenever an invoice containing the vendor item is completed or approved at any location. This updated price will be used across all locations. This price is associated with the item’s Purchase UofM. The Split Price is associated with the Split UofM.

The Split Price and Price values are not dynamic, meaning they do not update each other. This is intended because most vendors charge split/break fees, so the cost per unit for a split case will be higher than the cost per unit of a full case.

The most updated vendor item price can be viewed on the classic vendor item table or the Ordering section of the new vendor item record.

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