TABLE OF CONTENTS
- What a Blanket Purchase Order Is and When to Use It
- How to Create a Blanket Purchase Order
- How to Create an Invoice for the Blanket Purchase Order
- How to Create a Receipt for the Blanket Purchase Order
- How to Filter All Blanket Purchase Orders
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 Configurations → Basic Settings → Document Setup tab → Blanket Purchase Order under the Purchase Order section.
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 Item.
To find more details on how to create a Blanket PO per Total, please follow this link.
To use the Blanket PO per Total functionality please ensure you have activated the Invoices module for your company.
If you turn off the Invoices module, the Blanket PO per Total will become unavailable. If you also had BPO per Items functionality deactivated, then the Create Blanket PO button will not be displayed and subsequently will not be available.
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.
- Number of Deliveries — the number of goods you expect delivered.
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. In the document press the Create Receipt button on the right action panel. Then select the items you want to receive and proceed to the next step.
You should have a Receipt role to be able to create a receipt.
You can also create a Receipt from the Receipt creation page.
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 Filter All Blanket Purchase Orders
To view all Blanket Purchase Orders filter them by using the Purchase Order Type filter.