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Written by Cecilia Chee, Singapore   
Monday, 03 October 2011 17:50

 

 

 

Purchase Order Types

 

Standard Purchase Orders

You generally create standard purchase orders for one-time purchase of various items. You create standard purchase orders when you know the details of the goods or services you require, estimated costs, quantities, delivery schedules, and accounting distributions. If you use encumbrance accounting, the purchase order may be encumbered since the required information is known.

Blanket Purchase Agreements

You create blanket purchase agreements when you know the detail of the goods or services you plan to buy from a specific supplier in a period, but you do not yet know the detail of your delivery schedules. You can use blanket purchase agreements to specify negotiated prices for your items before actually purchasing them.

Blanket Releases

You can issue a blanket release against a blanket purchase agreement to place the actual order (as long as the release is within the blanket agreement effectivity dates). If you use encumbrance accounting, you can encumber each release.

Contract Purchase Agreements

You create contract purchase agreements with your suppliers to agree on specific terms and conditions without indicating the goods and services that you will be purchasing. You can later issue standard purchase orders referencing your contracts, and you can encumber these purchase orders if you use encumbrance accounting.

Planned Purchase Orders

A planned purchase order is a long-term agreement committing to buy items or services from a single source. You must specify tentative delivery schedules and all details for goods or services that you want to buy, including charge account, quantities, and estimated cost.

Scheduled Releases

You can issue scheduled releases against a planned purchase order to place the actual orders. If you use encumbrance accounting, you can use the planned purchase order to reserve funds for long term agreements. You can also change the accounting distributions on each release and the system will reverse the encumbrance for the planned purchase order and create a new encumbrance for the release.

Purchase Order Types Summary

 

Standard Purchase Order

Planned Purchase Order

Blanket Purchase Agreement

Contract Purchase Agreement

         

Terms and Conditions Known

Yes

Yes

Yes

Yes

Goods or Services Known

Yes

Yes

Yes

No

Pricing Known

Yes

Yes

Maybe

No

Quantity Known

Yes

Yes

No

No

Account Distributions Known

Yes

Yes

No

No

Delivery Schedule Known

Yes

Maybe

No

No

Can Be Encumbered

Yes

Yes

No

No

Can Encumber Releases

N/A

Yes

Yes

N/A

 

 

 

 

Last Updated on Monday, 03 October 2011 19:39
 
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