Standard Purchase Order: These for one time purchase of various item. we create standard purchase order when we know the details of the goods or services we require, estimated costs , delivery schedules and account distributions.
Note: Long term agreement is not appropriate with vendors.
Blanket Purchase Agreement: To create these orders when we know the details of goods or services and we plan to buy from a specific vendor in period. But we don't yet know our detail delivery schedules.By using blanket purchase order we specify the negotiated prices for our items before actually purchasing them.
Note: Choose this agreement when we have negotiated volume discounts and we want to create release against these negotiated volumes. or when we commit to the specific items, quantities or amounts.
Blanket release: We can issue blanket release against blanket purchase agreement to place the actual order(as long as blanket release with in the blanket agreement affective dates).
Planned Purchase Order: This order is long term agreement committing to buy items or services from a single source. we must specify the tentative delivery schedules and all details for items or services that we want to buy ,including charge accounts ,quantities and estimated cost.
Note: we want to choose this order when we want encumber order before creating release. and also provide vendor scheduling for capacity management while issuing releases to confirm order commitment.
Contract Purchase Order: when we create this order with our supplier to agree on specific terms and conditions without indicating goods or services that we will be purchasing. Later we issue the standard purchase order against this contract orders.
Note: Negotiate pricing on the entire volume of ordered goods or services.
