Blanket PO

[Former Member]

Dear all,

Kindly make clear the following questions

1.What is the purpose for creating the blanket purchase order?

2 For blanket Po- there is no goods receipt and service entry then how to enter the invoice for this PO?

3.How to system know whether the goods receipt has made or not?

Regards,

Renuga.A

[former_member459660]

Hi renuga,

1.What is the purpose for creating the blanket purchase order?

Blanket purchase orders is used to procure different consumable items or external services,for which more detailed induvidual processing(ex:goods receipt) is considered uneconomical.You can create a blanket PO which has a validity period and an item specific value limit.The materials or services are grouped under a heading or superordinate term(short text) and represented as an item of the blanket order.Prices for induvaidual materials are not recrded in the purchase order.

The key advantage of blanket PO is the reduction in processing costs.

>Differentmaterials and /or services are procured over a long period witha single PO item

>It is not necessary to issue seperate purchase orders for the induvidual procurement transactions

>There is no goods receipt or service entry process

2 For blanket Po- there is no goods receipt and service entry then how to enter the invoice for this PO?

3.How to system know whether the goods receipt has made or not?

When an invoice is entered with reference to a balnket PO,the system checks the following

>Does the invoice lie within the validity period of the blanket purchase order

>Will the over all limit of the PO item be exceeded as a result of the posting the invoice

You can use same MIRO transaction for invoice verifcation for balnket PO

Hope this will help you

Reward if useful

Thanks and Regards

SHYAM.R

[Former Member]

Hi all,

Thanks,

Regards,

Renuga.A

[Former Member]

Dear Renuga,

Characteristics of Blanket PO are :

> For low value items

>For consumable material & services

> Have validity period & value limit

> Validity period instead of delivery dates

>Invoice posting is done with respect to Blanket PO

> Total invoice value must not exceed limit

> Contain short text & no material /services code nos.

> Item category used is B

> PO Document type FO

> No GR

> No account assignment for individual item required at PO

> Account assignment can be changed at IV

> Price st item line level.

I hope this will give you clear idea of blanket PO

If useful reward point.

Vivek Maitra

[Former Member]

Hi

1.What is the purpose for creating the blanket purchase order?

-->blanket purchase orders are used to procure materials or services that you do not want to process individually (purchase order, goods receipt, and invoice receipt). These PO's are valid for longer period so no need to create seperate Po for indivisual GR

2 For blanket Po- there is no goods receipt and service entry then how to enter the invoice for this PO?

--> In blanket Po we give Validity period and Limit value while Invoice Verification checks whether the invoice lies within the validity period and whether the total limit will be exceeded when the invoice is posted.

IV is posted with reference to blanket PO

3.How to system know whether the goods receipt has made or not?

-->There is no goods receipt (for services, there is no service entry or service acceptance). Invoices are posted directly for the purchase order. In these cases user deparment will validate receipt of goods or service

Vishal...

[Former Member]

The use of blanket purchase orders 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.

The steps for creating such orders are:

You create a blanket PO for the desired validity period.

The PO need not contain any specifications.

You set a value limit.

It is not necessary to record and accept services performed against the order.During the validity period of the purchase order, incoming invoices are posted directly with reference to the PO, provided that the value limit is not exceeded.