Purchase Order Document Types
OVERVIEW
Purchase Order document types are used to classify different types of purchase orders based on their specific characteristics and processing requirements. These document types help in streamlining procurement processes ensuring accuracy and providing better control over purchasing activities.
1. Standard Purchase Order:
Used for procuring goods or services from external vendors with specific terms and conditions.
2. Subcontracting Purchase Order:
Used when a vendor (subcontractor) is responsible for manufacturing a product using materials provided by the ordering company.Purchase order includes both the finished product and the components required for its production.
3. Consignment Purchase Order:
Used for goods supplied by a vendor but stored at the company’s premises with payment made only for consumed items.
4. Stock Transport Order (STO):
Used for transferring goods between plants or storage locations within the organization.
5. Framework Order (AF):
Covers long-term procurement agreements such as contracts and scheduling agreements.
6. Scheduling Agreement (SA):
A long-term agreement with a vendor for the delivery of materials at specified intervals.Similar to a framework order but with a more structured delivery schedule.
7. Blanket Purchase Order:
Blanket PO is a long-term purchase order used for procuring goods or services over a period without specifying exact quantities or delivery dates.It's essentially a framework for future purchases allowing you to streamline procurement for frequently ordered items.
Standard Purchase Order
20 min
Framework Order/ Blanket PO
15 min