In Maximo, you can create a
PO of type Blanket from Contract Application.
In general terms, If a company uses any PO system of any Kind, it has the option of utilizing blanket PO for purchase of frequently purchased items or services.
In general terms, If a company uses any PO system of any Kind, it has the option of utilizing blanket PO for purchase of frequently purchased items or services.
Difference
between Regular and Blanket PO
A regular PO is used for one-time purchases, while a blanket PO uses the same PO number for multiple purchases (releases).
What is blanket PO ?
Blanket PO is a long-term agreement between a company and its supplier.
Although a single blanket PO number is only set up one time, it can allow multiple releases against it different times throughout a set time period. A "release" occurs each time a blanket PO quantity is fulfilled and invoiced against.
Purpose/Uses
A regular PO is used for one-time purchases, while a blanket PO uses the same PO number for multiple purchases (releases).
What is blanket PO ?
Blanket PO is a long-term agreement between a company and its supplier.
Although a single blanket PO number is only set up one time, it can allow multiple releases against it different times throughout a set time period. A "release" occurs each time a blanket PO quantity is fulfilled and invoiced against.
Purpose/Uses
- Increases Efficiency - Eliminating repetitive data entry and multiple one-time POs.
- It can be used for automatic reordering process.
- Invoices are paid in more timely manner.
Scenario
Company wishes to set up an agreement with a landscaping service for monthly lawn care.
The company cant pay for the entire year of service upfront;instead, it wishes to create a blanket PO so that it can pay Lawn company each month.
In any Purchasing system, the company (buyer) will create a blanket PO for 12 months on a single line of PO.
The buyer will also set a rules that will set an expiration date (12 months from now) and how many months are allowed to be released at one time.
Each month, as the lawn care service provider performs the work and invoices for it, the buyer will generate a release of one month in order to pay the invoice.
Once 12 releases have been done against this blanket purchase order, the purchase order is complete.
http://www.ehow.com/facts_5158253_blanket-purchase-order.html
Company wishes to set up an agreement with a landscaping service for monthly lawn care.
The company cant pay for the entire year of service upfront;instead, it wishes to create a blanket PO so that it can pay Lawn company each month.
In any Purchasing system, the company (buyer) will create a blanket PO for 12 months on a single line of PO.
The buyer will also set a rules that will set an expiration date (12 months from now) and how many months are allowed to be released at one time.
Each month, as the lawn care service provider performs the work and invoices for it, the buyer will generate a release of one month in order to pay the invoice.
Once 12 releases have been done against this blanket purchase order, the purchase order is complete.
http://www.ehow.com/facts_5158253_blanket-purchase-order.html
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