28 Work with Blanket Orders

This chapter contains these topics:

• Section 28.1, "Entering Blanket Orders,"

• Section 28.2, "Creating Purchase Orders from Blanket Orders."

You can enter a blanket order when you have an agreement with a supplier to purchase a certain quantity or amount of goods over a period of time. You must enter the entire quantity or amount on the blanket order. Each time you are ready to receive a portion of the goods, you can create a purchase order.

For each blanket order on the system, you can view the original quantity on the order, the quantity or amount released to date, and the quantity or amount left to release.

The system distinguishes a blanket order from other types of orders by the order type code, which is usually OB (blanket orders).

28.1 Entering Blanket Orders

Navigation

From Stock Based Procurement (G43A), choose Purchase Order Processing

From Purchase Order Processing (G43A11), choose Blanket Orders

You might issue an order for goods or services from which the supplier releases portions over a period of time. When you have this type of agreement with a supplier, you can enter a blanket order.

When you enter a blanket order, you must specify the entire quantity or amount of the item or service that you want to order. For example, if you have an agreement with a supplier to purchase 100 widgets a month over the next 12 months, you must enter a blanket order for 1200 widgets.

You enter a blanket order in the same way that you enter a purchase order. You can enter a single detail line for the entire blanket order quantity or amount, or you can enter multiple detail lines.

28.1.1 What You Should Know About

Topic	Description
Printing blanket orders	You use the same procedure to print blanket orders as you do to print purchase orders, only you must specify the order type for the blanket orders. For more information, see Section 9.1, "Printing Purchase Orders."

See Also:

• Chapter 3, "Enter Purchase Order Header Information" for information about entering header information for a blanket order,

• Chapter 4, "Enter Purchase Order Detail Information" for information about entering detail lines for a blanket order,

• Section 10.1, "Reviewing Open Orders" for information about reviewing pending blanket orders and the quantity or amount left to receive on a blanket order,

• Chapter 73, "Purchasing Order Entry Processing Options" for information about the processing options applicable to this task.

28.2 Creating Purchase Orders from Blanket Orders

Navigation

From Stock Based Procurement (G43A), choose Order Gen/Approve/Release

From Order Generation/Approval/Release (G43A13), choose Generate POs from Blanket

When you are ready to receive the goods or services on a blanket order, you must release the quantity or amount for which you want to create a purchase order. For example, if you have a blanket order for 1200 widgets and you want to receive 100, you must locate the blanket order detail line and release 100 widgets. The system prompts you to create a purchase order for the quantity or amount you release.

To create purchase orders from blanket orders

On Generate POs from Blanket (P43060)

Figure 28-1 Generate POs from Blanket screen

Description of "Figure 28-1 Generate POs from Blanket screen"

1. To locate blanket order detail lines, complete one or more of the following fields:

   • Branch/Plant

   • Supplier

   • Buyer Number

   • Order Number

   • Item Number

   • Account Number

   The system displays only those detail lines with status codes that you specified in processing options 2, 3 and 4.

   Detail lines with cancel dates prior to the current date do not display.

2. Press F4 to access the detail area and review the following fields:

   • Qty: To Date

   • Qty: Original

   • Amt: To Date

   • Amt: Original

3. Complete the following fields:

   • Release Quantity

   • Release Amount

4. Type 1 in the following field for each detail line from which you want to create a purchase order:

   • OP (Option Exit)

   The system prevents you from exiting the form until you have created purchase orders for the releases you have chosen. For more information, see Section 5.7, "Creating Orders from Existing Detail Lines."

Field	Explanation
Qty: To Date	The original quantity of the order line, plus or minus any changes to that quantity, less all quantities shipped, received and/or vouchered to date. This number can also be the actual quantity received. Form-specific information This field contains the quantity of the item on this detail line that you have released to date.
Original	The quantity of units affected by this transaction. Form-specific information This field contains the original quantity for this detail line.
Amt: To Date	The value of the goods received to date against the original order line. Form-specific information This field contains the value of the items on this detail line released to date.
Original	The number of units multiplied by the unit cost. Form-specific information This field contains the original value of the items on this detail line before any releases were made.

28.2.1 What You Should Know About

Topic	Description
Blanket release during purchase order entry	In lieu of releasing blanket orders through the release program (P43060), you can release blanket orders through Order Entry (P4311). You can set the program to identify open blanket orders for the supplier and item you enter on the purchase order. If you enter a purchase order detail line for an item or service that already exists on a blanket order, the system automatically displays the Blanket Release window (P40216), in which you can review information about the open blanket order and release a quantity and amount from the blanket order. You use processing option 56 behind Purchase Order Entry (P4311) to activate blanket release processing. Only those blanket order types that you set up in user defined code table 40/BT display for blanket release processing.
Exceeding available quantities	Blankets cannot be over-released. For example, a blanket has a quantity of 10 with a unit cost of $1.00. If a purchase order is released for a quantity of 12, two lines will be created in the purchase order. One line will be for a quantity of 10 (blanket quantity) with a unit cost of $1.00 (blanket cost) and will contain the blanket information. The second line will be created for the over-release quantity of 2 with the base cost and will not be linked to the blanket order. The cost will be retrieved based on the Purchase Price Level setup on the item.
Units of Measure	Avoid creating a blanket order in a larger unit of measure than the transaction unit of measure on the purchase order. The blanket order should be entered in the smallest (primary) unit of measure if you plan on the system doing UOM conversions between the blanket and purchase order.
Open amounts	The open amounts for blanket orders can be viewed using the Order Inquiry program (P430301) from menu G43A112, option 11. The processing options behind this program can be used to specify which orders statuses are selected and whether the open amount or quantity is shown.

28.2.2 Processing Options

See Section 76.1, "Blanket Order Release (P43060)."