PECOS P2P » 7. Blanket Orders » 7.1 Overview

7.1 Overview

Fig 7.1 BlanketTab.png
PECOS supports the creation and use of Blanket Orders by all users. Invariably however, blanket orders are setup by central purchasing departments and commodity managers following negotiation with your suppliers.

Blanket Orders are sometimes referred to as ‘Contract Orders’ and are often created following the negotiation of a fixed price contract for the provision of goods or services.

As a user you may have the permission to view, use (create releases), or create blanket orders. This will depend on the privileges you have been granted by your system administrator.

7.1.1 Types

Blanket Orders are defined in the PECOS P2P as being one of two different types:

  • Quantity Based
    Quantity based blanket orders are often used to reserve the purchase of a specific number of items from a supplier. The blanket order can be used to ‘call off’ quantities of the order as they are required.
  • Amount Based
    Amount based blanket orders are used to reserve a specific value of a commodity or service from a specific supplier. The blanket order can be used to ‘draw’ releases of the commodity or service until the money set aside for the blanket order is exhausted.

Each type of order can be configured with the ability to ‘Call Off’ quantities and amounts over a period of time. Where call offs are required, it is the individual releases and not the original blanket order itself, which constitutes the purchase order against which goods are received and invoiced. Further to the ability to create releases, it is also possible to schedule releases for submission on a predefined date.

7.1.2 Financial Tracking

Financial Tracking codes assigned at header or line level at the time of creation of Blanket Orders are stored with the Blanket Order

These Financial Tracking codes will be propagated to the Blanket Release created from the Blanket Order as long as the requisitioner has the permissions to use those specific Financial Tracking Codes. If the user does not have the correct permissions, the user’s default Financial Tracking codes will be used.

7.1.3 Uses

Listed here are some examples of purchasing scenarios where Blanket Orders could be utilised.

  • An Information Technology department wishes to procure a large number of new computers and roll them out at undetermined times throughout an implementation project.
  • A Transport department needs to purchase a defined number of new vehicles and take delivery over an undefined, staged period.
  • An Estates department needs to create a number of fixed term garden maintenance contracts.
  • A Finance department needs to create a procedure for the efficient accounting of a number of utility suppliers.
  • A Personnel department wishes to engage a supplier for the provision of training courses for a newly implemented eProcurement application and has an opportunity to negotiate a block booking discount.
  • A Purchasing department has a long term need for consulting services but does not know exactly when the consultants will be needed or for how long.

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