Glossary > —O— > Order Cost
Order Cost
Order Cost includes the internal overhead costs involved in the acquisition of a part, including such things as selecting vendors, generating purchase orders, and paying the invoice.
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As you order less, your Order Cost per part increases.
The global setting OP_USE_REPAIR_COST_FOR_REPAIR_AUTOAPPR determines if specific order costs are used.
When this global setting is set to true the Order Cost is determined as follows:
Repair orders use Repair Cost
Procurement orders use Order Cost
Replenishment and Balancing orders use Replenishment Order Cost
When this global setting is set to false the Order Cost is used for all order types.
Repair Cost is used for the repair orders and the Price is used for all other order types.
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The Order Cost is at the order level. The Repair Cost is at the unit level.
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