In Tradogram, the Purchase Price serves as the financial benchmark for an item. It acts as the "Standard Cost" or "List Price" that the system uses for automation, budgeting, and performance tracking.

Default Pricing for Transactions

Whenever you add a database item to a Requisition, Purchase Order, or Expense, the system will automatically populate the price field with this value. While you can manually override it on the document, having a default price saves time and reduces entry errors.

Sourcing & Target Values

When creating a Request (RFQ/RFP), the purchase price is used to calculate the "Target Value" of the sourcing event.

• Internal Visibility: This target value is visible only internally to help your team understand the expected cost of the request.
• Offer Comparison: When supplier bids arrive, the original purchase price is displayed in the comparison table as a reference point to evaluate how competitive the new quotes are.

Savings and Overspend Reporting

The purchase price is the primary variable used in the Item Savings Report. Tradogram calculates your procurement performance by comparing:

• The PO Price: What you actually paid.
• The Purchase Price: Your established benchmark price.
• The Result: The difference is reported as either Savings (if the PO price is lower) or Overspend (if the PO price is higher).

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