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Creating a Blanket Order From a Contract

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.

You can create a blanket order to place an order for resources covered by a contract. When you create a blanket order from a contract, only resources and prices from the contract can be included.

You can only create blanket orders for approved and open contracts. You cannot create a blanket order while the contract is:

•	Waiting for approval

•	Approval has been rejected

•	Pricing agreement has expired

•	Contract has expired

•	Contract or pricing expiration is pending

When you create a blanket order from a contract, the contract’s supplier information, and terms and conditions, and contracted resources are defaulted onto the blanket order. You may or may not be able to change the terms and conditions, depending on the terms and conditions rule selected on the contract. You may or may not be able to change the resource prices for the blanket order lines, depending on the purchase order rule selected on the contract.

If the contract was created from an RFQ, the system uses the bid quantity as the quantity required for each line. If the contract is not related to an RFQ, the system calculates an expected quantity for each resource, based on the quantity received over a period of time the same as the effective period of the contract.

This topic explains how to create a blanket order from a contract.

For more information on blanket orders, please see Blanket Orders and Releases.

To Create a Blanket Order From a Contract

1.	From the site’s Purchasing view, select the Contracts tab.

2.	In the Open Contracts configuration list, double-click the contract from which you want to create a purchase order to open it. The Contract window appears.

3.	From the Tools menu, select New and then Blanket Order. A confirmation message appears.

4.	Click Yes. The Create Blanket Order dialog appears.

5.	Select whether or not the blanket order includes inventoried items:

Setting Name

Description

Create inventory purchase lines for the resources that are stocked

Select this option if the blanket order will be used to purchase items for a warehouse inventory group. You must also select the warehouse inventory group in which the items are stocked. Note: Only resources that have a warehouse item in that inventory group will be included on the blanket order as inventoried items. Other resources will be added as direct purchases.

6.	Select whether or not the blanket order includes resources that are not stocked in your warehouses (direct-purchase):

Setting Name

Description

Direct purchases are to be included

Select whether or not the blanket order includes resources that are not stocked in your warehouses (direct-purchase). If you select this option, you must also select a GL account to charge for the direct purchases. Click Browse to search for the appropriate account. Inventoried resources with a regular purchase type are charged to the warehouse. All other lines (non inventories, rentals, repairs) are charged to the selected account. Note: If you do not select this option, but you select direct purchase resources for the order, the system will not create lines for those resources.

7.	In the Resource selection section, select which contracted resources to include on the blanket order.

8.	Click OK. The Purchase Order window appears, with the purchase order type set to Blanket Order.

9.	Fill in any remaining blanket order properties, contact information, and charging information.

Note: You may not be able to edit the blanket order’s terms and conditions, depending on the rules selected on the contract.

10.	Select the Lines tab. The selected resources are shown as separate lines.

11.	To review or edit a line, double-click it. The Purchase Order Line dialog appears.

12.	You can now edit the Quantity required, Release quantity, Instructions, or Charging Info for the line.

Note: You might not be able to edit the resource’s pricing information, depending on the rules selected on the contract.

13.	When you are finished, click OK.

14.	Repeat steps 11 to 13 for each blanket order line.

15.	When you are finished, Save the blanket order.

16.	You can now perform the following steps, as necessary:

•	Send the blanket order for approval (see Sending Purchase Orders for Approval)

•	Mark the blanket order as active (see Changing the Status of a Blanket Order)

•	Create a blanket release (see Creating a Blanket Release)

•	Send a blanket release to the supplier (see Sending a Purchase Order to a Supplier)