Blanket Purchase Orders

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TAMM10 4.0B

15-1

Limit Purchase Orders: Objectives

At the conclusion of this unit, participants will be

able to:
Explain the business process for blanket purchase

orders
Enter blanket purchase orders in the system
Enter invoices for blanket purchase orders

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TAMM10 4.0B

15-2

Blanket Purchase Order

$ 107,000
$ 97,000

PO

$ 15,000

Validity period
Jan 01 98 Dec 31 98
Limit:
$ 100000,000

$ 5,000
Jan 01 1998

Dec 31 1998

Invoice
Jan 15 98

Invoice
Feb 03 98

Invoice
Dec 09 98

Invoice
Dec 19 98

Invoice
Jan 17 99

CCtr 1 $1,000.00
CCtr 5 $4,000.00
$5,000.00

CCtr 1 $8,000.00
CCtr 5 $1,000.00
CCtr 3 $1,000.00
$10,000.00

CCtr 2 $4,000.00
$4,000.00

CCtr 5 $5,000.00
CCtr 8 $5,000.00
$10,000.00

CCtr 4 $2,000.00
$2,000.00

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As of Release 4.0A, you can create a purchase order with an item-related value limit, which is valid for
a longer period of time (for example, a year).
You can use these blanket purchase orders to procure materials or services that you do not want to
process individually (purchase order, goods receipt, invoice receipt).
You can use the standard document type FO for these blanket purchase orders. In the standard system,
this document type enables you to enter the validity period at PO header data level and use the item type
for blanket purchase order items. (Limit items are sometimes called blanket items.)
Invoice Verification checks whether the invoice is within the validity period, and whether the total limit
will be exceeded if the invoice is posted.

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TAMM10 4.0B

15-3

Procurement Using Blanket Purchase Order

Purchase
requisition
1
2

RFQ

Invoice
Invoice
Invoice
Rechnung

Quotation

Rechnung

?
=

Goods
Receipt

Contract

Sched. agmt

Service
entry sheet

PO
1
R

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You do not have to define the account assignment when the blanket purchase order is being created.
RFQs and contracts are not allowed. You can create a purchase requisition (optional) and then a
purchase order.
No goods receipt takes place (for services, there is no entry or acceptance of services performed).
Invoices are posted directly for the purchase order.
You have to use Logistics Invoice Verification to post an invoice with reference to an item in the blanket
purchase order.

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TAMM10 4.0B

15-4

Characteristics of Blanket Purchase Orders

New item category
New order type ( field selection)
Validity period in header of purchase order
Limits in the item

Order

No material number

No goods receipt / no service entry sheet

Account assignment type unknown' is allowed
Accounting data for the item suggested in invoices
Additional or multiple account assignment possible for Invoice
Verification
Check of validity period and limit in Invoice Verification
R

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New item type B for blanket purchase orders

New purchase order type: FO instead of NB

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TAMM10 4.0B

15-5

Benefits of Blanket Purchase Orders

Low transaction costs, as ...
A purchase order has longer validity period
No purchase order necessary for individual transactions
No goods receipt or entry of services performed
No material number (material group instead)
Account assignment can be defined in purchase order, but is
not mandatory
Account assignment and multiple account assignment can be
changed in Invoice Verification
Validity period and limit are checked in Invoice Verification
Linked with budget control.

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TAMM10 4.0B

15-6

Blanket Purchase Order: Summary (1)

Blanket purchase orders are used to procure

consumable materials more than once, on the

basis of a one-time purchase order that has the
characteristics of an outline agreement.
Blanket purchase orders are represented by

their own item category.

In the standard system, this item category is

allowed for document type FO (framework

order).
The field selection for this document type ensures that the

validity period is mandatory.

The document type FO also allows the procurement of

services.

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SAP AG

TAMM10 4.0B

15-7

Blanket Purchase Order: Summary (2)

Other characteristics of a blanket purchase

order are:
At invoice receipt, the system checks whether the limit

(+ tolerances) specified or the validity period has been

exceeded.
The account assignment category U (unknown) is

allowed. The account assignment data is specified at

invoice receipt.
Account assignments from the purchase order are

suggested at invoice receipt. You can have additional

and multiple account assignments.
Goods receipts are not possible. Invoices are posted

directly for the purchase order.

R

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TAMM10 4.0B

15-8