Replacement cost

Replacement Cost is the per-unit cost of acquiring inventory from a given supplier and is used as the default cost on purchase orders. Sterling™ Order Management System represents replacement cost as the published price list of the supplier.

Replacement Cost is stored within Sterling Order Management System in a structure that can vary the per unit cost by:

• Supplier
• Date

This is called the Vendor Price List.

The Sterling Order Management System provides the capability to use replacement cost in the following ways:

• As the default unit cost on purchase order lines. This can be overridden manually.
• As the base cost for unit cost calculations.