Purchase Order types

 Purchase Order:-
                           There are four types of purchase order

            i)                    Standard Purchase order:-

 This PO is created for a one-time purchase of material. A Standard Purchase Order is created when you know the Item, Price, Delivery schedule and Payment terms

ii)                  Blanket Purchase order :-

A Blanket Purchase Agreement is created you are not sure about the Qty, Price and required a Delivery schedule. The Qty and Price fields will be disabled as soon as you choose the PO Type as Blanket Purchase Agreement. You have to enter a Price. This price what you are entering can be made either final or overridable by checking or unchecking the checkbox name Allow Override in the ‘Price Information’ region of the PO lines. The exact Qty, Delivery Schedule and final Price will be informed to the Supplier by creating Blanket Releases against the BPA.

               

iii)                Planned Purchased order:-

 It is a long-term agreement PO. A Planned Purchase Order is created when you are not sure about the required delivery schedules. You are sure about the other details like Item, Price and Payment Terms. In the PPO window, you have to enter a Need-By date, but this date that you enter will be treated only as a tentative date. The exact date on which the shipments are to be delivered is informed to the Supplier by creating Schedule Releases against the PPO.

iv)                Contract Purchase Order:-

A Contract Purchase Agreement is created when you do not know even the item that is to be purchased. The only information that you provide in a CPA is Supplier, Supplier Site, Payment Terms and Agreement Control details. Standard Purchase Orders are created by referring to the CPA when something is to be purchased against this CPA.