Which of the following represents the third step in establishing a new purchase item workflow?

Which of the following represents the third step in establishing a new purchase item workflow?

• A. Enter Forecast (FCS340)
• B. Purchase Price (PPS100)
• C. Sales Price (OIS017)
• D. Product Costing (PCS280)

Answer: (B)

The third step in establishing a new purchase item workflow is represented by establishing the purchase price through the relevant transaction, which is indicated by the Purchase Price (PPS100). This step is crucial because it sets the financial parameters for how much the organization will pay for the new item, directly impacting budgeting, cost management, and supplier negotiations. Setting the purchase price follows the initial steps in the workflow, which typically involve identifying the need for a new item and ensuring its inclusion in inventory or product offerings. By defining the purchase price, organizations can achieve accurate financial planning and maintain appropriate profit margins, ensuring alignment with overall business objectives. Establishing a clear purchase price also affects various downstream processes, including inventory valuation and procurement strategies. Thus, correctly defining the purchase price at this stage is essential for seamless integration into the broader financial and operational framework of the organization.

The third step in establishing a new purchase item workflow is represented by establishing the purchase price through the relevant transaction, which is indicated by the Purchase Price (PPS100). This step is crucial because it sets the financial parameters for how much the organization will pay for the new item, directly impacting budgeting, cost management, and supplier negotiations.

Setting the purchase price follows the initial steps in the workflow, which typically involve identifying the need for a new item and ensuring its inclusion in inventory or product offerings. By defining the purchase price, organizations can achieve accurate financial planning and maintain appropriate profit margins, ensuring alignment with overall business objectives.

Establishing a clear purchase price also affects various downstream processes, including inventory valuation and procurement strategies. Thus, correctly defining the purchase price at this stage is essential for seamless integration into the broader financial and operational framework of the organization.