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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