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Different Types of Purchase Orders - A brief writeup

Discussion in 'General' started by Ramji, Feb 1, 2012.

  1. Ramji

    Ramji Forum Guru

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    Introduction

    This is a brief write up about the different Types of Purchase Orders in Oracle E-Business Suite

    Background

    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

    [TABLE="class: outer_border"]
    [TR]
    [TD][/TD]
    [TD]SPO[/TD]
    [TD] PPO[/TD]
    [TD] BPA[/TD]
    [TD] CPA[/TD]
    [/TR]
    [TR]
    [TD]Terms and Conditions Known[/TD]
    [TD]Yes[/TD]
    [TD]Yes[/TD]
    [TD]Yes[/TD]
    [TD]Yes[/TD]
    [/TR]
    [TR]
    [TD]Goods and Services Known[/TD]
    [TD]Yes[/TD]
    [TD]Yes[/TD]
    [TD]Yes[/TD]
    [TD] No[/TD]
    [/TR]
    [TR]
    [TD]Pricing Known[/TD]
    [TD]Yes[/TD]
    [TD]Yes[/TD]
    [TD]Maybe[/TD]
    [TD] No[/TD]
    [/TR]
    [TR]
    [TD]Quantity Known[/TD]
    [TD]Yes[/TD]
    [TD]Yes[/TD]
    [TD] No[/TD]
    [TD] No[/TD]
    [/TR]
    [TR]
    [TD]Deliver Schedule Known[/TD]
    [TD]Yes[/TD]
    [TD]Maybe[/TD]
    [TD] No[/TD]
    [TD] No[/TD]
    [/TR]
    [TR]
    [TD]Account Distribution Known[/TD]
    [TD]Yes[/TD]
    [TD]Yes[/TD]
    [TD]No[/TD]
    [TD]No[/TD]
    [/TR]
    [TR]
    [TD]Can be Encumbered[/TD]
    [TD]Yes[/TD]
    [TD]Yes[/TD]
    [TD]No[/TD]
    [TD]No[/TD]
    [/TR]
    [TR]
    [TD]Releases can be Encumbered[/TD]
    [TD]N/A[/TD]
    [TD]Yes[/TD]
    [TD]Yes[/TD]
    [TD]N/A[/TD]
    [/TR]
    [/TABLE]

     
  2. Bharat

    Bharat Community Moderator Forum Guru

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    Hi,

    Thanks for providing good article on Purchasing. The table helps us to differentiate those purchase order types.
     
  3. ramgopal

    ramgopal Active Member

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    good article....
     
  4. soumya.parhi

    soumya.parhi Premium Member

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    Well compiled and presented .

    Thanks a lot !!
     
  5. erp.narendrag

    erp.narendrag Forum Expert

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    nice article....

    thanks for posting this article
     
  6. thanks for ur artile
     
  7. oracle_mani

    oracle_mani Active Member

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    nice one. thanks for your time spending.
     
  8. vipulpateltrent

    vipulpateltrent Active Member

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  9. Maheshramaiah

    Maheshramaiah Active Member

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    Nice info..Thanks..
     
  10. surendar

    surendar Active Member

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    Very simple to understand. thanks a lot. keep posting
     
  11. citatus

    citatus Active Member

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    Nice Info...Thanks !!!