This is a brief write up about the different Types of Purchase Orders in Oracle E-Business Suite
A Standard Purchase Order is created when you know the Item, Price, Delivery schedule and Payment terms
A Planned Purchase Order is created when you are not sure about the required delivery schedules. You are sure about the other details like Item, Price, Delivery Schedule and Payment Terms. In the PPO window you have to enter a Need-By date, but this date that you enter will be treated only as a tentative date. The exact date on which the shipments are to be delivered is informed to the Supplier by creating Schedule Releases against the PPO.
A Blanket Purchase Agreement is created you are not sure about the Qty, Price and required Delivery schedule. The Qty and Price fields will be disabled as soon as you choose the PO Type as Blanket Purchase Agreement. You have to enter a Price. This price what you are entering can be made either final or overridable by checking or unchecking the check box name Allow Override in the ‘Price Information’ region of the PO lines. The exact Qty, Delivery Schedule and final Price will be informed to the Supplier by creating Blanket Releases against the BPA.
A Contract Purchase Agreement is created when you do not know even the item that is to be purchased. The only information that you provide in a CPA is Supplier, Supplier Site, Payment Terms and Agreement Control details. Standard Purchase Orders are created by referring to the CPA when some thing is to be purchased against this CPA.
Comparison of Different Types of Purchase Orders
SPO PPO BPA CPA Terms and Conditions Known Yes Yes Yes Yes Goods and Services Known Yes Yes Yes No Pricing Known Yes Yes Maybe No Quantity Known Yes Yes No No Deliver Schedule Known Yes Maybe No No Account Distribution Known Yes Yes No No Can be Encumbered Yes Yes No No Releases can be Encumbered N/A Yes Yes N/A