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PO urgent

Former Member
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Pls help me to understand what is the difference between blanket

PO & framework PO

Regards

anamika

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Blanket PO is used to procure materials or services up to a certain predefined maximum value (the value limit) from a vendor. (E.g. Office supplies and minor services).

Blanket POs have the document type FO. Instead of a specific delivery date, you can specify a validity period for the order.

GR or the entry and acceptance of services performed are not necessary in the case of a blanket PO. The invoices are posted directly with reference to the purchase order, provided that the specified value limit is not exceeded.

Venkat

Answers (3)

Answers (3)

Former Member
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Dear Anamika Roy

<i><b>Blanket purchase</b></i>

The use of blanket purchase orders (item category B) enables you to procure a variety of consumable materials or services from a vendor up to a predefined value limit.

Most companies have recurring requirements for minor items (such as office supplies, screws, small parts, cleaning work or other routine services) during the course of the year. Issuing a series of individual (discrete) orders of low value (perhaps with voluminous specifications) for such items, and then recording in detail the work done or goods delivered against the order, is frequently considered uneconomical.

Blanket purchase orders enable you to procure low-value items quickly, easily, and efficiently.

<i><b>framework order</b></i>

A framework order is a purchase order with the document type FO in the standard system. It has an extended validity period instead of a specific delivery date

Former Member
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Dear Ranga,

For this type of PO we need to create GRN & IV or not

regards,

anamika

Former Member
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Hi Anamika,

In SAP we have 4 types of document types used for PO.

NB - Standard

UB- STO

FO - Frame Work

DB - Dummy

In Frame work order it is also known as blanket order where it comes with validity period, that is for a given period of time like stationeries we give a po for 3 months or 6 months & note it is not contract it is just open PO.

In legacy system people use the word blanket PO, in SAP Blanket / Frame work PO works in the same fashion.

Regards

Rang