Blanket Purchase Order

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Blanket

purchaseorder

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Limit items also referred as
blanket items
Blanket purchase order is a simplified
procedure for procurement of consumable
materials.
Mainly “C” class materials are procured by
this process

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Blanket purchase order is created with a
longer validity period such as one year with
item specific value limit.
In this procedure PO, GR, Inventory entry
are considered un -economical.
Price of an individual item is not recorded in
the PO.

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Certain steps are deliberately omitted in Blanket
purchase order.
PR (Purchase requisition) is generally accepted.
RFQ (Request for Quotation), Contract, GR and
Service entry sheet are given away with.
An Incoming invoice is posted with reference to
PO.

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The processing cost is reduced for
Blanket purchase order due to the
following.
1. Different materials and services are
procured over a longer period with a
single PO.
2. No Goods receipt or service entry
sheet.

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Characteristics of a Blanket PO
PO type : Framework order
Validity period in header data is a must with the
limits entry
Item category: B (Limit)
No material master records required

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Characteristics of a Blanket PO
We can not use material number in PO with item category
B.
Material group / Service group is essential entry.
Account assignment category U (Unknown) permitted.
No GR or Service entry sheet.

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During invoice entry for Blanket purchase
order following facilities provided
It is checked within the validity period of PO.
Limit of PO value is not exceeded.
Accounting data for the item suggested.
Change the account assignment to multiple.
Correct the account assignment from unknown
to any.

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We will be allowed to create more
invoices even after crossing the limit of
value mentioned in blanket purchase
order.
The system will block payment to the
vendor until the limit is amended and
saved in the PO.