Blanket Purchase Order

Blanket PO

It can be created either manually or through quotations. It will not have any shipments. We have to create shipments by creating a release. It has price breaks. Most of the time we copy the price breaks of blanket Purchase Agreements from Quotations

Navigate to RFQ’s and Quotations > Quotations

Navigate to Tools > Copy Document

Press OK

Give Amount Agreed as 50K

Go to Terms & give details as shown below

Manually add another item in lines Tab of PO

& to make things simpler, I am deleting the line 1 (line 1 & line 2 have same items)

Go To Price Reference Tab & give details as shown below

Now go to Agreement Tab & check the cumulative Pricing check box

By checking this we ensure that the price of an item will be calculated based on the total items we give in all releases & not just in one release.

With Minimum release amount, we will decide as to what should be the minimum amount for each individual lines

Now Approve the PO & Navigate to Purchase Orders > Releases & give details as shown below

Here the total amount is more than 10K but line 1 total is less than 1000 so when we try to save it & approve, we’ll get following error

Now both the lines have amount greater than the individual specified limit but the header level total is less so when we try to approve it, we get following error

Now give details as shown below

& Approve the release

Create another release for the same PO

Here we can see that for line 1 the price is 10. This is because of cumulative pricing.