Blanket Purchase Orders
Blanket Purchase Orders
Introduction to Blanket Purchase Orders
• Blanket Order Flow
• Blanket Order Maintenance: Header 1 of 2
• Blanket Order Maintenance: Header 2 of 2
• Blanket Order Maintenance: Line Items
• Blanket Order Maintenance: Trailer
Print Blanket Order
• Blanket Order Print
Release Blanket Order
• Blanket Order Release to PO (Optional)
Exercise: Blanket Orders
Introduction
• A blanket order is an agreement to purchase items at a specific price during a defined time period, with the actual delivery dates to be determined
• A blanket order assumes that you and the supplier have a long-term relationship
• Blanket orders are useful when you place periodic (daily, weekly, monthly) or recurring orders for the same item
• Blanket orders are usually negotiated in advance of the demand and cover a rather long time period, such as the annual requirement for a key component, with a price based on a volume commitment. Blanket orders monitor the quantity purchased and offer an opportunity to negotiate a good price
• In general, blanket orders are entered, printed, and released to purchase orders (POs). Multiple releases can be processed for any blanket order line item, and you specify the quantity to release and the due date. Each release generates a purchase order; all receipts are processed against this PO
• Blanket orders are used for multiple deliveries of stock rather than make-to-order items
Example: A manufacturer of circuit boards might buy solder at irregular intervals but always from the same supplier. A blanket order for 12 months, could be set up with the supplier, and each month an order for solder would be released. The amount of solder needed would be specified at the time each order is released.
• The system uses the blanket order as a template to create a purchase order when a release is made
MRP ignores blanket orders and you cannot process receipts against them
However, once the blanket order is released, the resulting purchase order is treated exactly as any other purchase order
• You do not have to specify order and line item due dates during order entry. If you leave these fields blank, the system will assign these automatically when you release the blanket order
• To release a blanket order to a purchase order, the Release field must be set to Yes and the quantity to release must be entered for each line item. If you are releasing orders by cycle code, the blanket order must also have a cycle code
• When blanket orders are released to purchase orders, the system assigns a PO number by appending a release number to the blanket order number. For example, the first purchase order for blanket order 12004 would be 12004001, the second would be 12004002, and so on
• If a purchase order line item is canceled or deleted, the open quantity on the corresponding blanket PO is automatically adjusted
When a receipt is posted against a regular PO, the corresponding blanket order receipt quantity, if any, is also updated
The system closes blanket orders when the order is fully released or when all the lines are closed or canceled
• Blanket orders have no effect on the General Ledger
Note: For close supplier partnerships and recurring deliveries, you can use supplier schedules rather than blanket orders. Generated by MRP, these can provide your supplier with visibility into the projected timing of your requirements.
