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Blanket Purchase order ( Frame work Order)

To Simply the procurement of Low-Value Consumables and to reduce the costs blanket purchase order (Framework Order)can be used.
For Example, office supplies such as Pen, Paper. Small repairs, Cleaning work, Courier Service etc..
The business example for blanket PO. Create the Blanket PO with limit and Validity period . Then communicate with the vendor and notify the requirements. When the goods is delivered ,no GRN required in the system.  Cross check the invoice received from the vendor with limit and validity period of the Blanket PO.
The Main Advantage of Blanket Purchase order are
  • Valid for Longer period.
  • There is no goods receipt or service entry
  • It is not necessary to create PO items for individual Procurement transaction.
The Important Characteristics of Blanket purchase order are:
  • Order type FO ( Framework Order)
            The header field validity start and Validity end become mandatory fields 
  • Item Category B( Limit)
          Limit in the item, No Material Number, Account Assignment category U ( Unknown) is allowed, No goods receipt or Service entry.
  • Additional or Multiple account assignment possible in Invoice verification.
  • Check on validity period and limit in invoice verification.
Step 1 :

1) Go to t-code : ME21N
2) Create the blanket purchase order. Select the Framework Order from order type  and enter the validity start date and validity end date in Header ( Additional Data)
3) Specify the vendor details, purchasing group, purchase organization and company code in header tab
 10-7-2015 3-58-38 PM4) Enter the Overall Limit and Expected value.  10-7-2015 4-02-00 PM 5) Choose Save and make a note of the purchase order number 10-7-2015 4-27-36 PM

Step 2:
            
1) Go to t-code : MIRO
2) Enter the Invoice date, net amount, tax amount from the vendor invoice.
                10-7-2015 5-14-24 PM

3) On PO reference tab page, Choose Purchase order/Scheduling Agreement and enter the purchase order number
4) Choose Acct Assignment-Cost center in the Layout.
5) In the line item choose Acct Assignment  and enter the account assignment data
                 10-7-2015 5-05-11 PM
 6) For Multiple Account assignment enter the following data.
                 10-7-2015 5-08-30 PM
 7) Press the simulate button and post the invoice
                    10-7-2015 5-15-13 PM
                    10-7-2015 5-16-14 PM

Check the purchase order history from purchase order display t-code ME23N.
                    10-7-2015 5-18-01 PM
 10-7-2015 5-20-52 PM

Blanket purchase order tolerance limit configuration 

Tolerance for value limits and validity periods can also be configured in the system. If the invoice exceeds these tolerance limits it will be blocked.

Configuration:
IMG Path:

Material Management > Logistic invoice Verification > Invoice Block > Set tolerance Limits

  1. Tolerance key LA is defined for Blanket PO Value
  2. Tolerance key LD is defined for Blanket PO Validity period








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