Concepts Tasks Settings Blanket Orders and Releases A blanket order is a standing purchase order for items that you order on a regular basis. Blanket orders, like purchase orders, have a line for each item you order regularly from the supplier. This topic explains concepts related to working with blanket orders. Blanket Orders Blanket orders are basically a type of purchase order template. Each blanket order contains lines for items purchased from a specific supplier. The blanket order includes the same information as a purchase order, such as the supplier’s delivery and payment terms and conditions. You can create as many blanket orders as necessary. Once procurement creates the blanket order using the negotiated prices, quantities, and ordering information, a buyer can place the order when needed by creating a release. A blanket order is different from a purchase order in that it does not go through a life cycle. The procurement department can maintain control of the blanket order, setting the status to “Active” to enable buyers to use it and changing the status to “Closed” to prevent more releases from being created. TOP Blanket Releases When you want to purchase items on the blanket order, create a blanket release. Each release is linked to the blanket order from which it was created through a two-part identification number. The first part is the number of the blanket order and the second part is the number specific to this release. You can select the specific lines on the blanket order that you want to include on the release; you do not have to purchase all lines each time. In addition, you can adjust the quantities as necessary. Blanket releases do not require approval, but they do go through a life cycle that includes being created, printed, sent to the supplier, and received. Note: When you create a blanket release, the system uses the current price for the supplier resource, which may be different than the price originally selected on the blanket order line. If a warehouse item’s replenishment rules indicate that it should be purchased using a supplier resource that is on a blanket order, APM creates a release of the blanket order to replenish the warehouse item. TOP Contracts vs. Blanket Orders Contracts and blanket orders are similar documents. They have many of the same features, but there are differences: • Both represent an agreement between the customer and a supplier. • Both cover a defined list of resources. • Both identify an agreed upon price and set of terms and conditions. • A contract specifies effective and expiry dates; blanket orders do not. • A blanket order includes the quantity covered by the order and supports releases; a contract does not. • You can create a blanket order to order from a contract. You cannot create a contract from a blanket order. For information on contracts, see Contracts Overview. TOP
