Blanket Purchase Order (PO)

Blanket Purchase order -

A blanket PO is a longer term PO which is a chief instrument for recurring low value purchases. Example : Office Supplies, Stationery, Shop floor D items. Primarily Blanket PO is created for office supplies.

A PR can be a preceding document for a blanket PO. Contract for blanket POs cannot be created. We intend not to engage time in repetitive indirect purchases and thats precisely the reason to create such a longer term document. We ensure the duration of the blanket PO coincides with the financial year.

Specifics to be entered in the PO :

Document Type : FO

Item Category : B Limit

AAC : U Unknown / K / P

Validity Period : Financial Year

Value Limits : At Item level

No Material Code

There will be no MIGO in this process. MIRO will be done when the supplier delivers the goods + Invoice. MIRO will be posted against the PO. We can post invoices till the value limit is exhausted.

Value limit + Validity are the main criteria which is checked by the system for Invoice Blocking.