What are Blanket Purchase Orders?
Procurify’s blanket purchase orders allow you to procure goods or services multiple times over a set period of time. You can specify a total quantity/cost, unit price, and other relevant terms and conditions for the ongoing/repeated purchase. It allows you to draw against a single purchase as goods or services are delivered and billed.
Blanket purchase orders are ideal where the specific details of each purchase may not be known in advance. This helps your purchasers negotiate better prices by guaranteeing your vendor a certain volume of business.
What are the benefits?
Set a clear price or unit quantity ceiling that matches invoices against the blanket purchase order until they have consumed the maximum ceiling amount - allowing their procurement and accounts payable team to purchase and pay faster, with confidence.
When would I create a Blanket Purchase Order?
All kinds of services:
contractors (consultants, laborers, etc)
recurring but variable services (landscapers, cleaners, security, etc)
advertising
software where the price/usage might be variable
server fees
Physical goods where you won't know the exact quantity needed:
construction materials
production materials
Blanket Order Item Process
Step 2: The order awaiting approval will include"Contains Blanket Order Item(s)." Approve the blanket purchase order request. Learn how to approve order requests.
Step 3: Create a Purchase order for the Blanket Order Item. Learn how to create a purchase order. The purchase order created will display "Blanket Purchase Order" to help you distinguish it from regular purchase orders.
Step 4: Receive items against the blanket purchase order. With blanket purchase orders, it is possible to receive items partially and create a bill right away with partial receiving. Learn how to receive items.
Step 5: Create Bills for received items. Learn how to create a bill.
Frequently Asked Questions
Is the auto-receive function compatible with blanket purchase orders?
It is possible to auto-receive with blanket purchase orders.
How will blanket purchase orders work with our integrations NetSuite and QuickBooks Desktop?
Blanket purchase order works with NetSuite and QuickBooks integrations.
Important: When using the Receive by Amount blanket item option, the quantity and unit cost are inverted on the purchase order in NetSuite and QuickBooks Desktop (only applicable to purchase order sync). I.e. The unit cost will be $1.00, and the quantity will be equal to the total cost of the blanket item.
How do I disable or enable blanket purchase orders?
Is it possible to edit a blanket PO once created?
At this time, no.
Additional Information:
Blanket purchase orders will have an expiry date, not a promise date.