A purchase order with a validity period and limits for the simplified procurement of materials or services.
A longer-term blanket purchase order enables you to procure different materials or services from a vendor up to a specified maximum value. The nature of the materials or services in question is generally such that the cost of and administrative effort involved in processing individual purchase orders is regarded as disproportionately high in relation to their value.
The account assignment of the individual requirements need not yet be known at the time of ordering. It can be entered during the invoice verification process. As a rule, the items or service lines of a blanket purchase order feature multiple account assignment. If account assignment data was maintained in the purchase order, it can be changed at the time of invoice verification (for example, single account assignment can be changed to multiple account assignment).
Neither a goods receipt nor the entry and acceptance of services performed is necessary with regard to blanket purchase orders. Instead, invoices can be posted direct with reference to the PO provided that the value limit is not exceeded.