Blanket Purchase Orders

You can improve buyer efficiency and accuracy and potentially reduce procurement spending by using blanket purchase orders. Blanket purchase orders define a pre-determined price for a set quantity of items you will buy from a vendor during a time period. The blanket purchase order specifies the item, price, quantity, terms and effective time period.

First, you can negotiate with your vendor for prices and terms to be applied through a time period. This method is more practical than sporadically negotiating with a vendor for each order. It can help ensure that you consistently get the best pricing from the vendor.

Next, you can set up a blanket purchase order to define the specifics of the agreement:

the item or items to be purchased from the vendor
the negotiated price for the items
the quantity of items to be purchased
the intended delivery schedule that will be required.

After the blanket purchase order is entered, use the blanket purchase order to create, or release, any new orders for the agreed-upon items. When orders originate from the blanket purchase order, note the following. Any delivery schedule released by the buyer that falls within the effectivity dates of the blanket purchase order uses the contracted pricing and terms. The purchase orders associated with the scheduled deliveries can be released at the time the blanket purchase order is created or later, as needed. Future orders can be released either manually as determined by buyers, or automatically based on item lead times and features you use. For example, Demand Planning or Advanced Inventory Management.

After purchase orders have been created from delivery schedules and released:

Purchase order lines reference the originating blanket purchase order.
The blanket purchase order schedule details all associated purchase orders.

NetSuite OneWorld Accounts

In NetSuite OneWorld accounts, the following considerations apply:

The subsidiary of the user and the subsidiary of the vendor must match. The subsidiary of the user is based on the user's employee record, or assigned role of the user if the role has assigned subsidiaries.
Item and location restrictions based on the role of the user are respected.
The currency selected in the header of the transaction is used for all currency values displayed on the blanket purchase order. However, currency values displayed on the purchase order are the vendor's currency.

Note:

If you use NetSuite OneWorld and the selected vendor is shared with multiple subsidiaries, you can associate this blanket purchase order with any assigned subsidiary. The item price will be based on the selected vendor and all assigned subsidiaries.

NetSuite OneWorld Accounts

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