What is a Processing Cost
Savannah Ryan
Last Update 4 months ago
This is an indication of the internal cost of the administrative or operational work involved in processing a purchase order.
It’s typically used to account for the time, labour and system costs needed to process an order. For example such costs might include:
Reviewing and verifying item selections and supplier choices.
- Generating and submitting the purchase order.
- Receiving and storing the order.
- Processing confirmations, delivery notes and invoice reconciliation.
- Recording of the supplier invoice.
- Payment of the supplier invoice.
As a result, reducing the number of purchase orders may actually save the practice staff time and indirect costs even if an item is purchased at a higher cost to another alternative.
The Processing fee amount is determined by your Primary Account Holder (PAH), based the operating structure of your practice.
The adding, editing or removing of the Processing cost is carried out in Purchase Order Management area of the General Settings section of the PAH My Account:
