SCLCI’s Back-to-Basics: 5 Minute Explanation “Purchase Order Types”
The series breaks down similar concepts in quick comparisons that are designed to clarify concepts quickly. Follow topics and download the infographics or request customized materials.
“Contract Purchase Agreement” (PA)
A legal agreement that only need contain terms and conditions governing purchases from the supplier without specifying order details.
“Standard Purchase Order” (SPO)
The quantities, delivery schedule, and price, are known, as are the terms and conditions, all get included in the legal contract to purchase the order.
“Blanket Purchase Order” (BPO)
A legal agreement typically for long term supply of specific goods or services of an unknown quantity and no scheduled delivery, prices can be negotiated in advance. Also known as a standing order or blanket purchase agreement.
“Planned Purchase Order” (PPO)
The purchased quantities and pricing are known and in the agreement with a supplier where terms are set in a contract purchase order.
“Blanket Release”
A record that, when issued, authorizes the use of allocated funds to execute a purchase against a blanket purchase order (BPO) and includes all details of quantity, delivery schedule, and price, that meet conditions to fulfill the order.
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