Purchase order types


Purchase Order Types examples 

  1. standard :
    • like going to hardware shop asking for cement, 10 bags, @ 100rs each , on 1sep16
  2. Blanket :
    • I will take cement from you(single supplier)  worth of 50,000 but i dont know when and at what price
  3. planned :
    • I will take cement from you (single supplier ) and 10 bags , 100rs each on 1sep16 and with dist acct
  4. contract :
    • I will take some goods from you in future ( any supplier)
      (no info about goods,price  and dates )these are my terms and conditions , while creating PO add this contract to PO.



Purchase Order Types

Purchasing provides the following purchase order types: Standard Purchase Order, Planned Purchase Order, Blanket Purchase Agreement, and Contract Purchase Agreement. You can use the Document Name field in the Document Types window to change the names of these documents. For example, if you enter Regular Purchase Order in the Document Name field for the Standard Purchase Order type, your choices in the Type field in the Purchase Orders window will be Regular Purchase Order, Planned Purchase Order, Blanket Purchase Agreement, and Contract Purchase Agreement.

Standard Purchase Orders
(with good,prices,qtys,dates,accounting dist’s) to any supplier

You generally create standard purchase orders for one-time purchase of various items.

You create standard purchase orders
when you know the details of the goods or services you require,
estimated costs,
delivery schedules,
and accounting distributions.

If you use encumbrance accounting, the purchase order may be encumbered since the required information is known.

Blanket Purchase Agreements
(goods from single supplier without prices and dates)

You create blanket purchase agreements when
you know the detail of the goods or services
you plan to buy from a specific supplier in a period,
but you do not yet know the detail of your delivery schedules and prices.

specify negotiated prices for your items before actually purchasing them.

Blanket purchase agreements can be created for a single organization or to be shared by different business units of your organization (global agreements). You can encumber funds for a blanket purchase agreement.

Planned Purchase Orders
(single supplier + all standard details)

(standard + blanket = planned)
A planned purchase order is a long-term agreement committing to
buy items or services
from a single source.
You must specify tentative delivery schedules and
all details for goods or services that you want to buy,
including charge account,
quantities, and
estimated cost.

Contract Purchase Agreements
(any supplier + terms and conditions+amount , without goods )

You create contract purchase agreements with
your suppliers to agree on specific terms and conditions
without indicating the goods and services that you will be purchasing.

You can later issue standard purchase orders referencing your contracts, and you can encumber these purchase orders if you use encumbrance accounting.

Global Blanket Agreements

You may need to negotiate based on an enterprises’ total global purchase volume to enable centralizing the buying activity across a broad and sometimes diverse set of businesses. Using global agreements (a special type of blanket purchase agreement), buyers can negotiate enterprise-wide pricing, business by business, then execute and manage those agreements in one central shared environment. Enterprise organizations can then access the agreement to create purchase orders that leverage pre-negotiated prices and terms. You can encumber funds for a global agreement.

Blanket Releases

You can issue a blanket release against a blanket purchase agreement to place the actual order (as long as the release is within the blanket agreement effectivity dates). If you use encumbrance accounting, you can encumber each release.

Global Contract Agreements

You can use global contract agreeements (a special type of contract purchase agreement) to centralize a supplier relationship. Buyers throughout the enterprise can then leverage this relationship by referencing this global contract agreement in your standard purchase orders.

Scheduled Releases

You can issue scheduled releases against a planned purchase order to place the actual orders. If you use encumbrance accounting, you can use the planned purchase order to reserve funds for long term agreements. You can also change the accounting distributions on each release and the system will reverse the encumbrance for the planned purchase order and create a new encumbrance for the release.

Purchase Order Types Summary

  Standard Purchase Order Planned Purchase Order Blanket Purchase Agreement Contract Purchase Agreement
Terms and Conditions Known Yes Yes Yes Yes
Goods or Services Known Yes Yes Yes No
Pricing Known Yes Yes Maybe No
Quantity Known Yes Yes No No
Account Distributions Known Yes Yes No No
Delivery Schedule Known Yes Maybe No No
Can Be Encumbered Yes Yes Yes No
Can Encumber Releases N/A Yes Yes N/A

Purchase Order Features


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