Different Purchase Order Types Described

In this article, we summarize the Purchase Order types you can create and utilize in Precoro. This way, you can select the specific document that best meets your company’s needs.

Type of Purchase Order	Document Definition and Application	Best Practice Use Cases
Standard	Standard PO can be used both for buying goods and services, but the best practice is to purchase goods when you know the exact Quantity and Price per item. A Purchase Order can be created either from scratch or by using a pre-existing Purchase Requisition. It can be used to order services at a fixed rate per hour/day/month. Each new service is recorded as a separate line (for example, if you have a monthly subscription and receive Invoices from the supplier every month, each month is recorded as a separate line, and the Invoice is applied to each line separately based on the month the charge comes). There is a required Receipt Match by the Received Quantity for post-payment terms. There is an Invoice to PO Matching process. It works as follows: Precoro will calculate the delta between the Purchase Order and the Invoice. The document will only go to the PO initiator for the Matching process if the Invoice to PO % difference exceeds the allowed Tolerance Limit. Also, your settings for the Tolerance Limit will, in turn, affect whether the document will be re-approved after the manual changes made in the document or whether the re-approval process will be triggered after the Matching.	One-off (regular) Orders with a fixed amount or list of items (office supplies, hardware, etc.). Yearly Orders with monthly/quarterly invoices with fixed amounts (regular fixed services or subscriptions).
Blanket per Total	A Blanket Order is an agreement between an organization and a supplier to deliver goods or services at a predetermined price repeatedly for a specified period. You can use this type of Blanket Purchase Order to place an order for a fixed amount, and there are no item lines in this type of document, so there is no need to enter the ICF and other item data. Items are added to this Blanket Order by creating new Invoices. You can create a Receipt document only after creating and approving the Invoice document first. Multiple Invoices can be charged against the same Order within the established time frame until the set Total amount is over. There is no limit to the number of Invoices created. The Budget in a document will only be written off after creating the Invoice.	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.
Service	The Service Order document will allow you to create, pay, and track all your utilities and services. The major difference between Service and Standard Purchase Orders is that you order actual items in Purchase and need to track their receipt. In Service, on the other hand, you will have the ability to: Pay for services instead of items. The document does not have a quantity field. Therefore, you will not be necessarily required to create Receipt documents. Create multiple Invoices and break the item total into partial amounts. It can be helpful if you, for example, want to create a payment for a 12-month service. The document is created for the amount-based sum. Receipts and Invoices are amount-based as well. Those related documents also do not have the Quantity field, only the sum. Net Total is available for editing instead of Price. The document is created for a certain Service Period, not a specific date. You can add it to the Budget and set a Budget Breakdown function (select periods needed to be included in the Budget). You can use the 3-Way Match Functionality, which will help you block the document’s Invoice Confirmation without Receipt. After the Receipt creation, the Invoice will be automatically forwarded to the next Step in your Workflow.	Yearly Orders with monthly/quarterly invoices with fixed or varying amounts (regular fixed services or subscriptions). Yearly Orders with unpredictable invoicing and varying amounts (usage-based services). A contract for goods with varying scopes for each delivery.
Recurring Order	This type of document is useful if you need to completely copy the previous Order and create an identical one for a new period. The Order will be repeated as often and in the periods you select in the settings. You can choose the needed Validity Period, Repeat frequency, and select Budgets for future recurring documents. Please note that recurring Orders can only be created for a Standard or Service document type. Precoro will create an Order automatically, depending on the settings you have selected. The recurring documents will be created with all the exact data from the original. Please note that if you have an Approval Workflow in place, the recurring documents will automatically undergo the same Approval Workflow every time a new recurring is created unless you are using the Auto-Approval for Recurring Documents feature. That functionality will help you build a seamless approval process for the recurring Invoice and PO documents by automatically approving them when the original document is approved.	Repeated purchases like coffee/water delivery or any other items you want to order on a schedule. Packing materials.