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Blanket purchase orders in Business Central let you set up a long-term agreement with a vendor for a quantity of items you plan to buy over time. Instead of creating individual purchase orders from scratch each time, you create them directly from the blanket order, which keeps prices and item details consistent across every purchase.
When you create a purchase order from a blanket order, you enter only the quantity you want to call off at that point. The blanket order tracks how much you have received and how much remains, so you always know where you stand against the agreement.
When you post the receipt on a purchase order made from a blanket order, Business Central updates the quantity received on both the purchase order and the blanket order automatically. You don’t have to maintain prices and item details manually for each new order.
What a blanket purchase order does in Business Central
A blanket purchase order is how you set up a long-term agreement with a vendor for a number of items you intend to buy. It defines the items, the quantities, and the prices for the agreement. From that agreement, you then create individual purchase orders as you need to receive the goods.
The point is to avoid re-entering the same vendor terms every time you order. The blanket order holds the agreed prices and details, and each purchase order you create from it inherits those terms.
Setting up the blanket order lines and quantities
When you open a blanket purchase order, you can add lines for the items covered by the agreement, each with its own quantity. These lines represent the full agreement with the vendor.
To begin with, the quantity to receive shows the full amount of the agreement, and the quantity received is zero. You then specify the portion you want to call off now. For example, you might set 100 on one line and 10,000 on another, and enter the date when you expect to receive those items.
The end date of the agreement is handled in the header of the blanket order, so you can always see the due date for the agreement as a whole.
Creating a purchase order from the blanket order
Once you’ve entered the quantities you want to call off, you create a purchase order directly from the blanket order using the Make Order function. Business Central asks you to confirm that you want to create an order, and once you accept, the purchase order is created.
At this point, the quantity to receive on the blanket order line is cleared for the portion you’ve just ordered. The new purchase order contains the lines for the specific quantity you called off, with the prices and details carried over from the blanket order.
Posting the receipt and tracking progress
When the goods arrive and you post the receipt on the purchase order, Business Central posts the receipt on that purchase order and registers it back on the blanket order at the same time.
After posting, the blanket order reflects the updated figures. For example, the quantity to receive becomes 110,000 once the received quantity is accounted for. You can then enter a new quantity when you create the next purchase order from the same blanket order.
This way, you keep calling off against the same agreement, and you handle the same prices and the same details on every purchase order without maintaining them each time.
Q&A
What is a blanket purchase order in Business Central?
It is a long-term agreement you set up with a vendor for a number of items you plan to buy over time. It holds the items, quantities, and prices, and you create individual purchase orders from it as you go.
How do you create a purchase order from a blanket purchase order?
You enter the quantity you want to call off on the blanket order line, then use the Make Order function. Business Central asks you to confirm, and once you accept, it creates a purchase order with the prices and details carried over from the blanket order.
What happens to the blanket order when you post a receipt?
When you post the receipt on a purchase order created from a blanket order, Business Central posts the receipt on the purchase order and registers it back on the blanket order. The quantity received updates on both, so you can see how much of the agreement remains.
Where do you set the end date of the agreement?
The end date of the agreement is handled in the header of the blanket purchase order, so you can see the due date for the agreement as a whole.
Why use a blanket purchase order instead of separate purchase orders?
It keeps the same prices and details consistent across every purchase order you create from it, so you don’t have to re-enter the vendor terms each time you order.
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