Types of Purchase Orders (PO) in Oracle Purchasing Module

Oracle ebusiness suite>Oracle SCM > Oracle Purchasing     

  QUESTION OF THE DAY!!  

Module: Oracle Purchasing

Question:  What are the Types of Purchase Orders (PO) in Oracle Purchasing Module.

Purchasing provides the following purchase order types: 

• Standard Purchase Order
• Planned Purchase Order
• Blanket Purchase Agreement
• Contract Purchase Agreement

1-Standard Purchase Orders

You generally create standard purchase orders for one-time purchase of various items. You create standard purchase orders when you know the details of the goods or services you require, estimated costs, quantities, delivery schedules, and accounting distributions. If you use encumbrance accounting, the purchase order may be encumbered since the required information is known.

 - One Time Order 

- Know the detail of Items , Quantity ,price , Schedule etc.

2-Planned Purchase Orders

A planned purchase order is a long-term agreement committing to buy items or services from a single source. You must specify tentative delivery schedules and all details for goods or services that you want to buy, including charge account, quantities, and estimated cost.

2.1-Scheduled Releases

You can issue scheduled releases against a planned purchase order to place the actual orders. If you use encumbrance accounting, you can use the planned purchase order to reserve funds for long term agreements. You can also change the accounting distributions on each release and the system will reverse the encumbrance for the planned purchase order and create a new encumbrance for the release.

3-Blanket Purchase Agreements

You create blanket purchase agreements when you know the detail of the goods or services you plan to buy from a specific supplier in a period, but you do not yet know the detail of your delivery schedules. You can use blanket purchase agreements to specify negotiated prices for your items before actually purchasing them. Blanket purchase agreements can be created for a single organization or to be shared by different business units of your organization (global agreements). You can encumber funds for a blanket purchase agreement.

Agreed Amount

3.1-Blanket Releases

You can issue a blanket release against a blanket purchase agreement to place the actual order (as long as the release is within the blanket agreement effective dates). If you use encumbrance accounting, you can encumber each release.

4-Contract Purchase Agreements

You create contract purchase agreements with your suppliers to agree on specific terms and conditions without indicating the goods and services that you will be purchasing. You can later issue standard purchase orders referencing your contracts, and you can encumber these purchase orders if you use encumbrance accounting.

4.1 -Global Contract Agreements

You can use global contract agreements (a special type of contract purchase agreement) to centralize a supplier relationship. Buyers throughout the enterprise can then leverage this relationship by referencing this global contract agreement in your standard purchase orders.

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