Blanket Purchase Order 

tubes and fabric
1. Introduction 
In addition to the basic agreement with suppliers where the terms of the procurement are defined (the type of goods, prices, terms of payment, delivery deadlines, etc.), in practice, there is a need for an additional, firmer agreement. In particular, this is a practice in the procurement of specific components in manufacturing, since the impossibility of procuring (or postponing the delivery, prices, etc.) can affect the entire production cycle being blocked. 
The document that defines this process is called Blanket Purchase Order, Blanket Agreement or Call-off Order. 
In this text, we will focus on how ERPAG works with Blanket Purchase Orders. For the process explanation, please refer to our blog: or to Wikipedia:
2. Entering the Blanket Purchase Order

entering blanket purchase order

The entry is very similar to the “classic” purchase order.
When entering a blanket purchase order, pay attention to the “start and end date”. This period indicates the validity of the procurement, i.e., from when and to which date the agreed conditions apply.
select date range for blanket purchase order
The “Quantity” column represents the total agreed quantity (the maximum quantity that can be obtained under those conditions). “Terms of payment”, “Purchase Price” and “discount” are subject to special conditions.
Blanket Purchase Order is not a replacement for an existing Purchase Order. It is a “cover” of newly-created purchase orders that have a mutual relationship. To make a purchase, it is necessary to manually enter a purchase order or to do it through the “fulfillment” process.
3. Purchase Order Entry

When manually entering a Purchase Order, if ERPAG detects that an open Blanket Purchase Order exists, a new entry field will be displayed, in which the relation to the blanket order can be determined.
purchase order entry
When selecting, the content of the (open) blanket purchase order is transmitted. Since these types of purchases are usually successive, you have the ability to delete items or edit quantities.
selecting the content of the blanket purchase order
After saving the purchase order, the blanket purchase order updates the status and the ordered quantity.
blanket purchase order list
blanket purchase order
Now, at any moment, we know how much we still have the order under the given conditions. 
In the next procurement, if we choose that this procurement is linked to the blanket purchase order, only the missing quantity will be populated. 
If the status is “in process”, we will have the “Complete as it is” option. We apply this option in cases where we have a remaining open quantity but we must close the document. The reasons may vary, from the expiry of the agreement period to the cancellation of the supplier. 
Note: One purchase order can only be linked to one Blanket Purchase Order, while one Blanket Purchase order can be linked to multiple order orders.
4. Fulfillment – Backorder

Fulfillment is a process that is very automated in ERPAG (for more information, please see our blog:, so we also developer the Blanket Purchase Order as an option that is completely automated as well.
When forming a fulfillment list, ERPAG checks if there are any open blanket purchase orders. Such orders are a priority and they will be suggested for the fulfillment as well. There is always a possibility of an alternative choice, and this can be achieved by “clicking” on the “supplier” column icon.
purchase order fulfillment
In the open pop-up selection, we can change the suggested parameters. If the required quantity is greater than the one on the open blank purchase order, ERPAG will purchase it from another supplier (the suppliers will be arranged according to the date of the document entry).  
Purchase orders generated from the fulfillment will be grouped according to blanket purchase orders.
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