Tuesday, October 12, 2010

Types of Purchase Orders

Standard PO
1) One time commitment to purchase goods / services
2) Specific Quantity, Rate, Delivery schedule

Blanket Purchase Agreement
1) Long Term Agreement to Purchase – e.g. Annual Rate Contract
2) Specific Quantity, Rate, but no specific Delivery schedule

Planned PO
1) Long term agreement to buy goods / services
2) Tentative delivery schedule and accounting distribution given.
3) Other terms and conditions fixed
4) Planned PO look exactly like a Standard PO

Contract Purchase Agreement
1) A master document giving Standard terms & Conditions
2) Suppliers are authorised to ship through Standard PO lines giving reference of the Contract Agreement
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