Customer and Sales
Purchase Price
The purchase price is the price at which a company procures an item from a supplier. It is an important basis for costing, purchasing price comparisons and the evaluation of procurement activities. The purchase price can vary depending on the supplier, quantity, currency or agreement and is often stored in the item master data or in supplier-specific purchasing data. This helps companies prepare purchase orders more economically and identify price variances more easily, so that when a new order is placed it can be checked immediately whether the current supplier price still fits the planned margin and the previous procurement level.
