All 21 Purchase Orders & 3-Way Matching questions
More in Purchase Orders & 3-Way Matching
What is a contract or catalog PO versus a spot PO? What is matching tolerance and why is it used? What are common causes of a three-way match failure? How are partial deliveries and partial invoices matched against a PO? What is the accounting flow across PO, goods receipt, and invoice? What does it mean to 'short pay' or 'block' an invoice, and when is each used? What is a PO commitment and how does it aid budgeting? How are freight, duty, and miscellaneous charges handled in matching? What is evaluated receipt settlement (ERS) / pay-on-receipt? How does PO matching support period-end accruals?
Advertisement
Accounts Payable & Receivable › Purchase Orders & 3-Way Matching

What is a blanket (standing) purchase order?

Intermediate

Answer

A blanket PO is an agreement to buy up to a set quantity or value over a period at agreed prices, released in multiple deliveries. It reduces administrative effort for recurring purchases, locks in pricing, and lets each release be received and invoiced against the single umbrella PO until it is exhausted or expires.
Real-world example A blanket PO covers a year's office supplies at fixed prices, with weekly deliveries released against it.

Common follow-ups: How is spend tracked against a blanket PO? | When does a blanket PO close?

Vendor Management Purchase Orders & 3-Way Matching Credit Control
All 21 Purchase Orders & 3-Way Matching questions