How to Create and Track a Blanket Purchase Order


What a Blanket Purchase Order Is and When to Use It

A Blanket Purchase Order is an agreement between an organization and a supplier to deliver goods or services at a predetermined price on a recurring basis for a specified period (typically one year).

The primary purpose of the Blanket Purchase Order is to reduce administrative costs when posting regularly and when agreeing to purchase services/goods.

When to use a Blanket Purchase Order:

  • When making repetitive and pre-specified purchases from the same supplier within a specific time frame (typically one year).
  • When ordering standardized products or services that require numerous shipments.

When not to use a Blanket Purchase Order:

  • When the price is unknown at the time of purchasing.
  • When the price is subject to change without notice.
  • When the supplier can change ordered items without notice.

Here is the workflow of the Blanket Purchase Order:

How to Create the Blanket Purchase Order

First, you need to activate it in ConfigurationsBasic Settings Purchase OrderBlanket Purchase Order.

Then, go to the Purchase Order page and press the Create Blanket PO button. You can create either a Blanket PO per Total or a Blanket PO per Items.

HubSpot Video

To find more details on how to create a Blanket PO per Total, please follow
this link.

The Blanket PO additional fields:

  • Validity period — the period when the Blanket PO is active and available for Invoice posting. 
  • First delivery date — the date when the Supplier should start the deliveries.
  • Amount of the deliveries — the number of goods you expect delivered.
  • Non-stock items checkbox — the received items from this PO will not affect the stock balance. It appears only if you use the Inventory module. 

How to Create an Invoice for the Blanket Purchase Order

All posted Invoices are calculated in the Blanket PO.

You can see the available amount for the Invoice posting on the Blanket PO page.

How to Create a Receipt for the Blanket Purchase Order

The process is similar to Invoice creation here.

Navigate to the Receipt page and find the Create Receipt button. 

You should have a Receipt role to be able to create a receipt.

All the receipts are shown in the item table.

When all the items are received, the Purchase Order status regarding delivery changes to Received.

How to View All Blanket Purchase Orders

To view all Blanket Purchase Orders you have, filter them by using the Purchase Order Type filter.