The type specified for a purchase order determines how the purchase order is processed. You can create active, standing, future, and blanket purchase orders.
Active
An active purchase order is a purchase order you intend to process immediately.
Standing
Standing purchase orders contain items you often order together. You can issue active purchase orders from standing purchase orders, as frequently as needed.
You can create standing purchase orders that contain items you often order together, and then create active purchase orders from the standing purchase orders.
Creating active purchase orders from standing purchase orders. To create an active purchase order from a standing purchase order, you call up the standing purchase order and change the type to Active (you can also select Future or Blanket to create other types of purchase orders), make the changes you need, then post the new order with a new purchase order number you typed or a number assigned automatically by the program.
When you post a purchase order you created from a standing purchase order, the standing purchase order is retained in the system, unchanged and with its original number, regardless of how many purchase orders you issue from it.
Changing a standing purchase order. To change the contents of a standing purchase order, you display the purchase order, make the changes you need, then post them. You can change everything about an existing standing purchase order except its number and type. If you change the purchase order number or type, the program assumes you are creating a new purchase order.
Future
Future purchase orders are purchase orders you enter with a future date on which you expect to activate and issue the purchase order.
Day End Processing automatically activates future purchase orders on the purchase-order date (or the first time you run Day End processing after the purchase-order date). Alternatively, you can change the status of a future purchase order to Active before the purchase-order date, or change the activation date.
Day End Processing posts newly activated future purchase orders so that purchasing statistics are updated and items are placed on purchase order in Inventory Control.
Tip: If you usually run Day End Processing at the end of the work day, future purchase orders set to be activated on a certain day will not become active until the end of the day. To be sure a future purchase order is ready to be processed on the correct date, assign a date earlier than the desired date..
Blanket
Blanket purchase orders are purchase orders you set up for a certain monetary amount, from which you issue active purchase orders until you have used up all the available funds.
When to use blanket purchase orders. You might use blanket purchase orders when you want to make a number of purchases over time, but want to avoid having to post a new requisition and purchase order for each purchase. For example, you might use a blanket purchase order to periodically replenish office supplies.
Blanket purchase orders are not normally used to buy inventory items. If you plan to buy a lot of inventory over time, you should process it through a large active purchase order, with all the details, rather than by using a blanket purchase order.
Setting up and using blanket purchase orders. When you set up a blanket purchase order, you specify the total amount (cost) of items that can be purchased. With each new purchase, you add detail lines to the blanket purchase order.
Tip: You can change the total amount allowed for a blanket purchase order at any time. If you wish, you can assign security to the Original Amount field on the Order tab, so that only authorized persons can change the amount.
When you post new details, the amount still available is calculated and displayed.
When the available amount reaches zero, the blanket purchase order is completed and you cannot use it to make any further purchases.
Posting additional costs for blanket purchase orders. Because you do not enter additional costs on purchase orders, and you can change costs on receipts without updating the purchase order, you may post a receipt total that exceeds the available amount on the blanket purchase order. Although Purchase Orders lets you post this type of receipt, your procedures may not permit you to exceed the amount specified on the blanket purchase order.