Contract Purchase Order

Purchase Orders

Purchase Orders are of 4 types

1.)   Standard PO

2.)   Planned PO

3.)   Blanket PO

4.)   Contract PO

Below mentioned table shows the actual usages of all of them

Note the following points

1.)   For planned PO, we’ll create Purchase Release. It will determine quantity & delivery schedule. Here validation is done based on quantity & PO total.

2.)   For Blanket PO, we’ll create Blanket Release. It will also determine quantity & delivery schedule. Here validation will be done based upon agreement amount.   

3.)   For Contract PO, a standard PO needs to be created

Update Approval groups with the details of new documents. Navigate to Setup > Approvals > Approvals Assignments & give details as shown below

& save the record

We’ll start with creating contract PO

1.)   Steps to create contract PO: Navigate to Purchase Orders > Purchase Orders. Give details as shown below

Click on Terms & give details as shown below

Kindly note that Amount agreed is used for approvals (In our case, it will go for 1^st level of approval). Whereas amount limit is used for Purchases.

Optionally you can add attachments to the contract which will be having actual Contract given by customers

Save the record & click on Approve. Once approved, the status of document will change to Approved

Against this contract, we’ll create a standard PO so navigate to Purchase Orders > Purchase Orders

Give details as shown below

Give contract details in Reference Documents Tab

Click on Shipments Tab & give Need By date

Save the record & click on Approve.

The status of this standard PO will change to Approved

Now query for contract PO. We can see that the Released amount is now 100K. we can make purchases for 50K more