What is a Blanket PO?
A blanket purchase order is a long-term agreement between an organization and a supplier to deliver goods or services at a set price on a recurring basis over a specified time period. Issuing a blanket purchase order with the details, such as price and delivery schedule, already specified is an efficient way to reduce time spent and processing delays.
How do I create a Blanket PO?
On the Supplier tab
- The PO type will be defaulted to “standard”
- Standard POs: standard POs should be used for a one-time purchase (one invoice – not recurring transactions)
- Blanket POs: Blanket POs should be used for suppliers with recurring purchases if the coding of the Purchase Order does not change.
Select blanket PO, and then select the invoice approver. The invoice approver is the person that will be responsible for approving all invoices submitted against the PO. Important: If the vendor submits an invoice that exceeds the invoice approver’s spend limit, the invoice will be escalated up the hierarchy for approval
the rest of the process remains the same