Average Order Values

This card averages the rounded total, VAT included, of submitted Purchase Orders dated in the current quarter, leaving out subcontracting orders. It tells you the typical size of each order you place with suppliers. Two demo orders of Rs 40,000 for furniture and Rs 1,00,000 for the laptop average Rs 70,000. A rising average with a falling count means you are consolidating purchases, which usually improves bargaining power. Purchase Orders post nothing to the ledger; the Purchase Invoice does.

Average Order Values = Average of base_rounded_total on Purchase Order where docstatus = 1, is_subcontracted = 0, transaction_date in this quarter

1. 01Go to Buying; the card sits with Purchase Orders Count and Total Purchase Amount.
2. 02Click the card to open the Purchase Order list for the quarter.
3. 03To change the period, open the card menu > Edit and set the Timespan filter.
4. 04Sort the list by grand total to see which orders pull the average up.
5. 05Use the figure when negotiating volume discounts with regular suppliers.

Typical size of each purchase you place.

Orders of Rs 40,000 and Rs 1,00,000 give an average of Rs 70,000.