Creating a blanket purchase order

This page allows you to create a blanket purchase order. Tell me more

Select the “Create Blanket Purchase Order” link under the “Blanket Purchase Order” business component.

The “Create BPO” page appears.

The system displays the following:

Date Format

The format in which the date fields are displayed in this page. This format is displayed from the "User Preferences" business component based on the login user ID. In case the format is not defined, the system displays the date format from the “Enterprise Modeling” business component by default.

The system displays the following in the “BPO Info” group box:

BPO #

A unique number identifying the BPO. This number is automatically generated by the system based on the numbering type selected, and displayed at the time of creating the BPO.

Enter the following fields:

Numbering Type	Use the drop-down list box to specify the numbering type based on which the BPO number must be generated. This system lists the numbering types defined in the “Create Numbering Class” activity under the “Document Numbering Class” business component. All the numbering types set for the transaction type “Blanket Purchase Order” are available for selection.
BPO Date	The date on which the BPO must be raised (Date format). Mandatory. The system displays the current system date by default.

The system displays the following:

Status	The status of the BPO, which could be one of the following:
	Draft – Indicates that the BPO has been created but some mandatory information has not yet been entered.
	Fresh – Indicates that the BPO has been created and all the mandatory information has been entered. A “Fresh” BPO can be modified, canceled or authorized.

To copy BPO details

Enter the following fields in the “Copy Details” group box, if you wish to create a BPO by copying the details from an existing BPO:

Copy BPO #

The number identifying the BPO from which the details are to be copied (Alphanumeric, 18).

Help facility available.

Note: In the “Edit Terms and Conditions”, “Edit Part TCD Details” and “Edit Document TCD Details” pages, the system copies the details of only those TCDs and Payterms that are in “Active” status and effective as on date.

Click the ”Copy BPO” pushbutton.

The system copies all the details from the blanket purchase order specified in the “Copy BPO #” field.

If the “Buyer Control” option is set as “Needed” in the “Set Purchase Options” activity of the “Logistics Common Masters” business component. the system copies the details of the blanket purchase order that is being copied in the “Copy Details” section and creates a BPO, on satisfying the following conditions:

If the login user has been mapped to the Buyer Group available in the Blanket Purchase Order being copied if the Buyer Group is not null.
If the login users primary Buyer group has rights to create Blanket Purchase Order.
If the login users primary Buyer Group is mapped to the “Part Type” and “Part Category” of the parts available in the Blanket purchase Order being copied.
If the Basic Value of the BPO being copied is within the maximum and minimum buying limit of the login users primary buyer group.
Click the “Create BPO” pushbutton, to create a new blanket purchase order with the copied details.

The system creates a new BPO in the “Draft” status.

To enter BPO details

Enter the following fields in the “BPO Details” group box:

Supplier #	The code identifying the supplier of the part (Alphanumeric, 45). Mandatory. The supplier must have been defined in the “Register Supplier” activity of the “Supplier” business component, and must be in ‘Active’ status.
	Help facility available.

The system displays the following:

Supplier Name

The name of the supplier.

Zoom facility available.

Address

The address of the supplier.

Zoom facility available.

Enter the following:

Part Type

Use the drop-down list to specify the type of the part for which the BPO is raised. The part could be of the type “Expendable”, “Consumable”, “Tool”, “Kit”, “Raw material”, “Miscellaneous” or “All”. The system lists the “All” option only if the “Multiple Part Types Allowed” option is set as “Yes” in the “Set Options” activity. The system sets the “All” option as default, if it exists, else leaves the field blank.

If the “Buyer Control” option is set as “Needed” in the "Set Purchase Options" activity of the “Logistics Common Masters” business component, the system checks whether the buyer group in the BPO is allowed to raise a BPO on this part type during BPO creation.

The system displays the following:

Buyer Group

If the “Buyer Control” option is set as “Needed” in the "Set Purchase Options" activity of the “Logistics Common Masters” business component, the system displays the buyer group mapped to the login user, in the “Create Buyer Group” activity of the “Buyer Group” business component. Buyer group consists of one or more buyers, who are identified for the procurement of specific items.

The system defaults the login users Primary Buyer Group.

The system also checks whether this buyer group is allowed to create a BPO.

Enter the following:

Agreement #	The number identifying the agreement document between the supplier and the company (Alphanumeric, 18). Mandatory.
Exchange Rate	The exchange rate of the currency in which the BPO is raised and the base currency of the company (Decimal). Mandatory.
BPO Valid From	The date from which the BPO is valid (Date format). Mandatory. The date entered here must be in the format displayed in the “Date Format” field.
BPO Valid To	The date until which the BPO is valid (Date format). Mandatory. The date entered here must be in the format displayed in the “Date Format” field

Note: Ensure that the “BPO Valid To” date is later than the “BPO Date”.

BPO Type	Use the drop-down list box to select the BPO type, which could be one of the following:
	Rate - The type of BPO in which the part is bought at a fixed rate. This rate is valid for a given period (The BPO validity period).
	Quantity - The type of BPO in which there exists a long-term agreement on the quantity that will be ordered. This quantity is total quantity required across locations.
	Value – This type of BPO specifies the total business that is guaranteed to the supplier on a set of parts. The total order value of all the parts will be equal to this value.
	The system displays “Rate” by default.
BPO Category	Use the drop-down list box to select the category of the BPO. The system lists all the categories defined in the “Create Common Category” activity from “Logistic Common Master” business component. The system displays blank by default
User Status	Use the drop-down list box to assign a user-defined status for the BPO. The system lists the user statuses that are in the “Active” status, created in the “Create User Status” activity of the “Logistics Common Master” business component. The system displays blank by default
Quality Attribute Check	Use the drop-down list to specify whether the parts listed have to adhere to the attributes and their values specified. The system displays the values “Yes” and “No”. The system sets the field to “No” by default.
BPO Currency	Use the drop-down list box to select the currency in which it is agreed to transact with the supplier. The system lists all the currencies that are in “Active” status and has a conversion factor set for the base currency, in the form of transaction currency. The system leaves the field blank by default.
	If this field is left blank, the system displays the currency mapped to the supplier in the “Register Supplier” activity of the “Supplier” business component.

The system displays the following fields in the “BPO Details” group box:

BPO Basic Value	The basic value of the BPO. The system displays the sum of the “Line Item Value” field displayed for all the line numbers in the multiline. If the “Buyer Control” option is set as “Needed” in the “Set Purchase Options” activity of the “Logistics Common Master” business component and a Buyer Group is available in the BPO, the system checks whether the basic value of the blanket purchase order falls within the Buying limit for the login user as specified in the Buyer Group in the “Create Buyer Group” activity of the “Buyer Group” business component.
Base Currency Value	The value of the BPO in base currency. If the “Buyer Control” option is set to “Needed” in “Logistics Common Masters” business component, the system checks whether the basic currency value falls within the limit specified for the buyer, in the “Buyer Group” business component.
Additional Charges	The additional charges incurred due to tax and other fees. The system displays the sum of the total TCD amount entered for all the BPO line numbers in the “Edit Part TCD Details” page and the TCD amount entered for the blanket purchase order in the “Edit Document TCD Details” page.
BPO Total Value	The total value of the BPO. This is calculated by summing up the “BPO Basic Value” and “Additional Charges” at the time of creating the BPO.

The system displays the following in the “Part Details” multiline:

Line #

The sequential number generated by the system for the parts entered in the multiline.

Enter the following field in the “Part Details” multiline:

Part #	The number identifying the part, which must be procured by raising the BPO (Alphanumeric, 40). Mandatory. The part must be in the “Active” status, as defined in the “Create Parts Main Information” activity of the “Part Administration” business component and marked as ‘Purchasable through BPO’ in the OU.
	Help facility available.

Note: Ensure that the “Part #” entered in the multiline is of the type specified in the “Part Type” field.

If the “Buyer Control” option is set as “Needed” in the “Set Purchase Options” activity of the “Logistics Common Masters” business component and a Buyer Group is available in the document, the system ensures that the Buyer Group is mapped to the “Part Type” in the “Edit Buyer Group” activity of the “Buyer Group” business component.

The system displays the following:

Part Description

A textual description of the part.

Enter the following:

Condition	Use the drop-down list box to specify the condition of the part, which could be one of the following:
	New – Indicates that the part is new.
	New Surplus – Indicates that the part is acquired from another operator / MRO, but has not been in use.
	Serviceable – Indicates that the part is serviceable. The system sets this field to “New” by default.
Order Quantity	The total quantity for which the BPO is raised (Integer). The order quantity is mandatory, if the “BPO Type” is “Quantity “ or “Rate”.

Note: If the minimum order quantity is defined in the “Part Administration” business component, then the “Order Quantity” must be greater than or equal to the minimum quantity.

The “Order Quantity” can also be in fractions, if fractions are allowed in the “Unit of Measurement Administration” business component.

Purchase UOM	The unit of measurement in which the part is purchased (Alphanumeric, 10). Mandatory. Ensure that this is already defined in the “Unit of Measurement Administration” business component and is in “Active” status.
	Help facility available.

Note: If the purchase UOM (PUOM) is not the same as the stock UOM as defined in the “Part Administration” business component, then ensure that there is a conversion factor defined for the conversion of the PUOM to stock UOM, either in the “Part Administration” or the “UOM Administration” business component.

Cost

The cost of the part for the specified quantity (Decimal). Data entry in this field is mandatory, for BPO of the type “Rate”. The cost for BPO of the type “Quantity” or “Value” is displayed from the “Register Supplier” activity of the “Supplier” business component.

Note: The cost must be greater than zero.

If the cost is left blank for the “Quantity” or “Value” BPO types, and if the cost of the part is defined in the “Supplier” business component, the system defaults the same.

Cost Per

The quantity of the part for which the cost is specified (Decimal). Mandatory, when the cost is entered.

For example, if the cost of one box of oil tins is $100, and the number of tins in one box is 50, enter $100 in the "Cost" field and 50 in the "Cost Per" field if the purchase UOM is Numbers. Enter $100 in the “Cost” field and 1 in the “Cost Per” field if the purchase UOM is Boxes.

Hence, the cost of a single unit (in purchase UOM) = Cost / Cost per

Note: If a value is entered in the “Cost” field, the “Cost Per” value must be positive. If the “Cost Per” value is left blank, the system defaults the same as defined for that part number in “Supplier” business component. If the part number is not mapped to the “Supplier” business component, the system defaults the “Cost Per” value as 1.

Line Item Value

The basic value of the particular line item.

Note: The system calculates the basic value as,

Basic value is order quantity multiplied by cost divided by cost per.

Alternate Part #	Use the drop-down list box to specify whether alternate part for the part must be allowed or not. The system lists “Allowed” and “Not Allowed” as options. If the alternate part number is allowed, then the alternate numbers must be defined in the “Maintain Alternate Part Nos” activity of the “Part Administration” business component. The system sets the field to “Allowed” by default.
Inspection Type	Use the drop-down list box to specify the type of inspection check done on the part, at the time of delivery. Inspection type could be one of the following:
	Self – Indicates that the part has to be checked by the maintenance controller or the person who receives the part.
	By Inspector – Indicates that the part is going to be checked by an external source.
	None – Indicates that no check is required for the part at the time of delivery. The system displays “None” by default.

Matching Type	Invoice matching is the comparison of the quantity and the values of the goods available at different points of time in the procurement process. The quantity ordered, the quantity received or the quantity accepted is matched with the quantity invoiced, to ensure that payment is made for the proper quantity and value of items. Use the drop-down list box to specify the type of matching to be done. The following are the various matching types available:
	Three way at BPO – when the invoice tolerance is checked at the total BPO quantity and amount, against all GR’s and not on the individual GR received quantity and amount.
	Three way at GR – when the invoice tolerance is checked with the individual GR received quantity and amount, and not on the total BPO quantity and amount.
	Four way at BPO – when the invoice tolerance is checked at the total BPO inspected quantity and amount, and not on the individual GR inspected quantity and amount.
	Four way at GR – when the tolerance is checked with the individual GR inspected quantity and amount, and not on the total BPO quantity and amount. The system sets this field to “Three Way at GR” by default.
Tolerance Type	Use the drop-down list box to specify the tolerance type. Tolerance is the upper and lower limit within which the quantity or the basic value received can vary. The tolerance limit affects the basic value of the BPO either positively or negatively. The tolerance type could be “Value”, “Quantity” or “Both”. The system sets this field to “None” by default.

Note: If “Tolerance Type” is “Value” or “Quantity”, then the “Tolerance %” should be a positive value between zero and 100.

Tolerance %

The tolerance allowed in invoice over the order quantity or value or both. The tolerance percentage must be positive and less than 100 (Alphanumeric, 5).

Note: The “Tolerance %” must be entered, when the “Tolerance Type” is specified.

Receipt +ve Tolerance (%)

The positive tolerance (in percentage) acceptable on the ordered quantity that can be received (Decimal).

Ensure that this value is greater than zero and less than or equal to 100.

Receipt -ve Tolerance (%)

The negative tolerance (in percentage) acceptable on the ordered quantity that can be received (Decimal).

Ensure that this value is greater than zero and less than or equal to 100.

Quality Attribute

Use the drop-down list box to specify whether the values of the quality attributes that is required to be measured for a part are “Standard” or “Customized” or “None”. None indicates that Quality Attribute values need not be measured during Inspection of the parts.

The system displays “None” by default.

Note: Ensure that when the “Quality Attribute” is set to “Standard” or “Customized”, the “Quality Attribute Check” field is set to “Yes”.

If the Quality Attribute is set as “Standard” or “Customized” for a row in the multiline, then the system checks that Quality Attributes with Usage as Purchase have been mapped to the part number in that row. If it has been mapped then on creation of the document, the system displays all those attributes in “Edit Inspection Details” page.

Remarks

Any additional comments pertaining to the creation of the BPO (Alphanumeric, 255).

Check the box in the “Select” column of the multiline, to select the part for deletion.
Click the Delete icon in the toolbar above the multiline, to delete the selected part from the BPO.
Click the “Get Part Details” pushbutton, to retrieve the part details.

If the part is mapped to the supplier, then the system retrieves the Purchase UOM, Cost, Cost Per, Inspection Type, Matching Type, Tolerance Type and the Tolerance Percentage from the “Supplier Part Mapping” page of the “Supplier” business component, and the Part Description, Receipt +Ve Tolerance (%) and Receipt -Ve Tolerance (%) from the “Part Administration” business component.

Click the “Create BPO” pushbutton, to create the BPO.

Note: This action is workflow-enabled. Notification messages can be sent and you can configure further processing of this document in the "Workflow Management" business component.

If the option Buyer Control is set as ‘Needed’ in the Logistics Common Master business component , the system allows the user to create a blanket purchase order on satisfying the following conditions:

The Buyer Group in the BPO should have rights for the Part Type and Part category of all the parts in the BPO
The current system date must be earlier than the “Effective To” date of the buyer as defined in the “Create Buyer Group” activity of the “Buyer Group” business component.
If the “Buyer Control” option is set as “Needed” in the “Set Purchase Options” activity of the “Logistics Common Master” business component and a Buyer Group is available in the BPO, the system checks whether the basic value of the blanket purchase order falls within the Buying limit for the login user as specified in the Buyer Group in the“Create Buyer Group” activity of the “Buyer Group” business component.

The system generates the line number sequentially for the parts entered in the multiline.

The system updates the status of the BPO as “Fresh”, if the BPO type is “Rate” or “Value” and the Pay Term has been saved for that BPO. If the BPO is of type “Quantity”, the system sets the status of the BPO as “Draft”. The system stores the name of the login user and the current server date as the created date.

If the Receipt +ve Tolerance and Receipt -ve Tolerance are left blank, the system retrieves these values from the “Part Administration” business component.

To proceed, carry out the following

Select the “Edit Terms & Conditions” link at the bottom of the page to enter the terms and conditions for the BPO.

Select the ”Edit Allotment Details” link at the bottom of the page to allot quantity for a part.

Select the “Edit Part TCD Details” link at the bottom of the page to add tax, charges and discount for the part.

Select the “Edit Document TCD Details” link at the bottom of the page to add tax, charges and discount for the BPO.

Select the “Edit Inspection Details” link at the bottom of the page to enter the inspection details.
Select the “Edit BPO ” link at the bottom of the page, to cancel and edit the BPO.
Select the “Authorize BPO” link at the bottom of the page to authorize the BPO.
Select the “Edit References” link to enter the document reference details for the BPO.
Select the “Edit User Defined Details” link to enter the user-defined details for the BPO.
Select the “Generate BPO Report” link at the bottom of the page, to generate the blanket purchase order report.
Select the “View Part / Service wise Rating” link at the bottom of the page, to view the part / service wise rating details.
Select the “View Supplier Rating” link at the bottom of the page, to view the supplier rating details.

Creating blanket purchase order – An Overview

This page allows you to create a blanket purchase order (BPO). This page captures all the blanket purchase order details like BPO type, category to which the BPO belongs, date on which the BPO is raised, supplier details, BPO currency etc. The BPO can be raised based on the part number, description of the part, condition of the part, quantity ordered and the cost per part.

This page also allows you to specify the organization unit where the part has to be delivered, valid date and the matching type. The various matching types that are available are, 3 way at BPO, 3 way at GR, 4 way at BPO and 4 way at GR.

The system generates the line number for the part sequentially at the time of creating the blanket purchase order. The system updates the status of the BPO to “Fresh” and stores the login user ID.

Prerequisites

“Create Parts Main Information” under the “Part Administration” business component
“Create Numbering Class” activity of the “Document Numbering Class” business component.
“Create UOM” activity of the “Unit of Measurement Administration” business component.
“Register Supplier” activity of the “Supplier” business component.

What you can do in this page

Copy details from an existing Blanket Purchase Order (BPO)

Specify the numbering type for the blanket purchase order

Classify the blanket purchase order based on the part you need to purchase

Specify the type of the part you need to purchase

Specify the condition of the part you need to purchase

Allow or disallow purchase or alternate parts

Specify the inspection type for the part

Specify the matching type for the part

Specify the tolerance type for the part procurement

Copy details from an existing Blanket Purchase Order (BPO)

You can copy details from a BPO that is already defined. Details such as the BPO type, category, date, part type, supplier number, currency, basic value, exchange rate, additional charges and total value can be copied.

Enter the number of the BPO from which details must be copied, in the “Copy Details” group box.
Click the “Get BPO Details” pushbutton, to copy the details.

A new blanket purchase order is generated in the “Fresh” status.

Specify the numbering type for the blanket purchase order

You can select the numbering type based on which the blanket purchase order number will be generated. The numbering type is unique for a combination of the login organization unit and the “Blanket Purchase Order” transaction type.

Select the appropriate numbering type for the blanket purchase order, from the “Numbering Type” field in the “BPO Info” group box.

On clicking the “Create BPO” pushbutton, the system automatically generates this number based on the numbering type selected.

Classify the blanket purchase order based on the part you need to purchase

You can create BPO of different types, based on the type of part that you need to purchase.

Set the “BPO Type” field to “Rate”, if you wish to buy a part at a fixed price.
Set the “BPO Type” field to “Quantity”, if you wish to procure a part on long-term agreement.
Set the “BPO Type” field to “Value”, if you wish to procure a list of parts for the total value agreed upon.

Specify the type of the part you need to purchase

You can specify the part type for which you are raising the BPO.

Set the “Part Type” field to “Raw Material”, if you need to raise a BPO to procure raw materials.
Set the “Part Type” field to “Expendable”, if you need to raise a BPO to procure spare parts.
Set the “Part Type” field to “Tool”, if you need to raise a BPO to procure tools.
Set the “Part Type” field to “Consumable”, if you need to raise a BPO to procure consumables.
Set the “Part Type” field to “Kit”, if you need to raise a BPO to procure kits for maintenance.
Set the “Part Type” field to “Miscellaneous”, if you need to raise a BPO to procure any other part.

Specify the condition of the part you need to purchase

You can specify the condition of the part for which the BPO is raised.