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Tuesday, January 19, 2010

Types of Purchase Orders

Different types of purchase order in Oracle
Standard Purchase Order: A standard purchase orders is generally created for one–time purchase of various items. Standard purchase orders is created when we know the details of the goods or services we require, estimated costs, quantities, delivery schedules, and accounting distributions.

Blanket Purchase Agreements: A blanket purchase agreements are created when we know the detail of the goods or services we plan to buy from a specific supplier in a period, but we do not yet know the detail of your delivery schedules. Blanket purchase agreements can be used to specify negotiated prices for items before actually purchasing them. Blanket purchase agreements can be created for a single organization or to be shared by different business units of organization (global agreements).

Blanket Releases: A blanket release is issued against a blanket purchase agreement to
place the actual order (as long as the release is within the blanket agreement effectivity dates).

Contract Purchase Agreements: A contract purchase agreement is an agreement between buyer and a supplier for unspecified goods or services. This agreement may include terms and conditions, amount, and effective dates. Later Standard Purchase orders can be issued based on the agreements decided.

Planned Purchase Orders: A planned purchase order is a long–term agreement committing to buy items or services from a single source. Tentative delivery schedules and all other details like item, price, quantity is specified in planned purchase orders. We can issue scheduled releases against planned purchase order to create standard purchase orders.

1 Comment:

Anonymous said...

Great stuff Suresh but will be more helpful if you come up with some screen shots of the related topics...


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