Could any expert can tell the major differneces between balnket Purchase order and Purchase order ?
because In Purchase order we can receive the Partial quantities, In blanket order also we can receive the Partial quantities.
Every time when we receive the material that we have to convert that from blanket order to purchase order , instead that one why dont we create the One Purchaseorde with different schedules.
what is the wrong in this ?
In Blanket order where can i define that deliver schedule periods.
Answer in detail is rather lengthy - but you can look up Help topic Creating Blanket Purchase Orders - there it’s described step by step how to create BPO and later create different POs from it.
Creating Blanket Purchase Orders
Use blanket orders when you have committed to buying large quantities of an item that are to be received in several smaller shipments over a certain period of time. See About Blanket Purchase Orders for more details.
Open the Blanket Purchase Order window.
Press F3 to insert a new order and then press Enter to assign the default number series.
In the Buy-from Vendor No. field, click the AssistButton to select the vendor from the Vendor List window.
Leave the Order Date field blank. When the separate purchase orders are created from the blanket order, the program will set the order date of the purchase order equal to the actual work date.
In the detail lines, create separate lines for each receipt. For instance, if you want 1000 units split out equally between four months, you would enter four separate lines of 250 units each.
In the Type field for each line, select Item and in the No. field, click the AssistButton and select the item from the Item List window.
In the Quantity field for each line, type the amount to be ordered for this line.
The Qty. to Receive field is automatically filled in by the program to indicate the quantity that the purchase orders are to be created for on the respective receipt dates.
In the Expected Receipt Date field for each line, enter the date this item must be received. You may need to insert the Expected Receipt Date field with the Show Column function.
Creating a Purchase Order from a Blanket Purchase Order1. To create an order for any of the lines, remove the quantity in the Qty. to Receive field on all the lines that you DO NOT wish to receive at this time.
When you are ready to create orders, click Make Order and then click Yes. A message appears informing you that the blanket order has been assigned an order number. Note that the blanket order has not been deleted.
Click OK.
To see the results of the preceding steps, click the Line button and then select Unposted Lines, Orders.
In the Purchase Lines window, select the appropriate purchase order, click the Line button, and select Show Document.
Converted Blanket Order Details- Once the blanket order is converted into a purchase order, the purchase order contains all the lines from the blanket order. The quantities for the lines where the quantity in the Qty. to Receive field was deleted appear but with blank Quantity fields. You may choose to leave, edit, or delete the lines.
It is important to remember that the purchase order line quantity must not exceed the quantity of the associated blanket order line. Otherwise, posting of the purchase order will not be possible.
When the purchase order is posted as received and/or invoiced, the program updates the Quantity Received and Quantity Invoiced fields on the related blanket order.
The program records the blanket order number and line number as properties of the purchase lines when created from a blanket order.
When purchase orders are not created directly from the blanket order but still relate to it, a link between a purchase order and a blanket order can be established by entering the associated blanket order number in the Blanket Order No. field on the purchase order line. The Blanket Order No. field will most likely need to be displayed using the Show Column function.
Once the purchase order(s) has been created for the total quantity of a blanket order line, the program ensures that no other purchase order(s) is created for the same line by preventing users from entering a quantity in the Qty. to Receive field. If, however, additional quantities need to be added to a Blanket Order, the value in the Quantity field can be increased and additional orders can then be created.
The invoiced Blanket Purchase Order remains in the system until it deleted, either by using the Delete (F4) function on individual Blanket Orders or by running the Delete Invoiced Blanket Purchase Orders batch job.
You do not enter teh blanket order in the manner described, you enter it for the years commitment, and in january convert 150 to a purchase order, in February 250.
My preference is to ignore blanket orders and load the lines on the purchase order and send it to the supplier as a call off which you never call off. If it is a true call off then the blanket order approach is used, just depends upon the relationship with the supplier and the process.
No that is not true, there is a clear difference. One is an actual order, one is a commitment and a call off. Planning will not look at blanket orders from memory for example. It is understanding the business process and what they want to do which is key.