Blanket Purchase Orders
Blanket Purchase Orders (BPOs) are standing agreements that let you buy from a vendor repeatedly over a defined period without issuing a full purchase order for every small order. This guide covers creation, activation, releases, and approvals.
Overview
A blanket PO establishes:
- Vendor — The approved supplier for the agreement
- Period — Start and end dates for when releases are valid
- Maximum amount — Total committed ceiling across all releases (and optionally line-level limits)
- Line items — Agreed goods or services, quantities, and pricing framework
You draw down the blanket by creating releases (call-off orders). Each release consumes part of the remaining blanket amount until the maximum is reached or the period ends.
Lifecycle
Draft → Submitted → Approved → Activated| Stage | Meaning |
|---|---|
| Draft | You are building or editing the BPO before submission |
| Submitted | Sent into the approval workflow |
| Approved | Approvers have authorized the blanket terms |
| Activated | The BPO is live; you can create releases against it |
After activation
Keep the BPO’s period and maximum amount current. When the period ends or the ceiling is exhausted, plan a new blanket or extend/amend per your organization’s policy.
BPO statuses
| Status | Description | Typical actions |
|---|---|---|
| Draft | Not yet submitted | Edit line items, vendor, period, max amount; submit |
| Submitted | In approval workflow | View; cancel if your role allows |
| Approved | Authorized but not necessarily live yet | Activate when ready; review terms |
| Activated | Open for releases | Create releases; monitor consumed vs remaining |
| Closed / Expired | Period ended or manually closed | View history; clone for renewal if supported |
(Exact labels in the UI may match your tenant configuration.)
Creating a blanket PO
Step 1: Open blanket PO creation
- Go to Purchase Orders (or Blanket POs, if listed separately in your menu)
- Choose New Blanket PO (or equivalent)
- Confirm you have permission to create blanket agreements
Step 2: Header details
| Field | Notes |
|---|---|
| Vendor | Select an approved vendor |
| Period | Start and end dates for the standing order |
| Maximum amount | Total not-to-exceed for all releases in the period |
| Currency / terms | As required by your process |
| Reference / notes | Internal reference or contract number |
Step 3: Line items
Add each agreed line:
| Field | Description |
|---|---|
| Description | Item or service |
| Quantity framework | Expected volume or “as needed” per your template |
| Unit / unit price | Basis for release pricing |
| Category / GL | If your workflow requires coding |
Step 4: Submit for approval
- Review totals against the maximum amount
- Attach contract or pricing support if required
- Click Submit for approval
The BPO follows your standard approval workflow (same concepts as PO approvals: sequential steps, conditions, notifications).
Releases (call-offs)
A release is an order against the activated blanket: it specifies what you are buying now and reduces the remaining blanket balance.
How to create a release
- Open the activated blanket PO
- Choose New release (or Create release)
- Select lines and quantities (and amounts) within remaining limits
- Submit if releases require approval, or confirm if your policy auto-executes small releases
Release tracking
- Consumed amount — Sum of approved releases
- Remaining — Maximum amount minus consumed (subject to rounding and tolerance rules)
- History — List of releases with dates and references
Link to standard POs
Releases often generate or link to normal purchase orders for fulfillment and goods receipt. Use your PO list and GRN flow as usual once the release is approved.
Approval workflow
Blanket POs typically use the same approval engine as purchase orders:
- Amount and department may drive which workflow applies
- Approvers see the full blanket terms, not individual releases (unless your setup routes releases separately)
- Rejection returns the BPO to an editable state for correction and resubmission
Plan availability
Blanket Purchase Orders are available on Professional and higher plans.
The capability is gated by the blanket_pos feature flag. If you do not see blanket PO options, contact your administrator to confirm your subscription and enabled features.