How to Create and Track a Blanket Purchase Order

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 View 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 → Purchase Order → Blanket 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.

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.