Types of Purchase Orders

There are 4 types of Purchase Orders


1. Standard Purchase Order (PO)

A one-time commitment to purchase goods or services. You create standard purchase orders when you know the details of the goods or services, estimated costs, quantities, delivery schedules, and accounting distributions.

2. Blanket Purchase Agreement

A long-term agreement allowing for stable pricing over the life of the agreement, while also allowing flexible order quantity commitments and delivery schedules. Pricing on blanket purchase agreements can include break pricing. You typically use this agreement when negotiating volume discounts on individual items. Create blanket releases to authorize suppliers to ship.

3. Planned Purchase Order

A long-term purchase agreement committing you to buy goods or services. Planned purchase orders include tentative delivery schedules and accounting distributions. Create planned releases to authorize suppliers to ship.

4. Contract Purchase Agreement

A master terms and conditions document. Typically use contract purchase agreements when negotiating pricing on a volume of business to manage terms and conditions. Suppliers are authorized to ship through standard purchase order lines referencing the contract. Contracts can be coupled with a catalog quotation to reference pricing on a per item basis.