Blanket PO ( Framework Order)

Hi Folks,
I am trying to configure Blanket PO and am having some issue. Could someone help me please. in OMR6 i have set the tolerance limits for tolerance keys LA & LD both Absolute and Percentage.. and also set up error status for message 297. When a PO is created with doc type FO, Item cat: B, Acct Assignment cat: U, validity for date, Set up Overall limit for 1000 and expected value 20000..
Firstly via MIRO, invoice could be posted for 50000 and theThe actual value in PO is not being updated and the tolerance is never validated.
Am I missing something here>
Any help is much appreciated.
thanks

well... i tried out the scenario in my system and there was a warning message
Value exceeds limit 1,000.00 INR in PO
Message no. M8298
you will need to configure this message as an error incase you do not want such invoice to be posted... otherwise the system puts a price block on the document.
hope this answers your query.
jimmy

Similar Messages

What is the diffrence between a blanket PO and a Framework order?

What is the diffrence between a blanket PO and a Framework order?

Hi
You have to use document type Frame work order for Blanket PO.
You can use blanket purchase orders to procure consumable materials or services for which it is not worth creating a separate purchase order for each procurement transaction.
Blanket purchase orders are usually valid for a longer period of time. You can directly post the invoices for the materials and services procured for this blanket purchase order.
Raju

Blanket Purchase Order and the Framework Order

hi Gurus,
I wanted to know the following.
What is the difference between Blanket Purchase Order and the Framework Order.
Thanks.

Hi,
Framework order is also known as Blanket PO.....which we use for the procurement of Low value Material with Long term planning....It is used as Mini Contract....
Blanket Order:
Used for long validity period and with the provided value limit. By its name u201Cblanketu201D which covers to required long time? We use doc type FO(for long period) and item cat. B(for value limit).Goods receipts or the entry and acceptance of services performed are not necessary in the case of a blanket PO and limit items. The invoices are posted directly with reference to the purchase order, provided that the specified value limit is not exceeded. But manual entry of invoiced amount and invoiced quantity is required during LIV process.
Example: Procurement of stationary items.
Frame work order:
Framework order (FO) is a document type which is provided by the standerd SAP.
It can be used for the consumable material ( Which is having low value & where making GR is not of worth like C category item.) & called as blanket PO. Here we need to mntion the validity period & target value or quantity as a restriction as well as need to mention item category as a "b".
Also it can be used for the procurement of extarnal services (Item category "D" ). Here we need to do the entry of services which have been performed & need to accept the same whereas in blanket PO, GR is not required.
At the end i would tel u that Framework order is the document type which can be used as blanket Po & procurement of services.
Regards
KK

Blanket purchase order and Framework order?

Dear Gurus,
what are the main differences between Blanket purchase order and Framework order?
Thanks..

Framework order is also known as Blanket PO.....which we use for the procurement of Low value Material with Long term planning....It is used as Mini Contract....
For making Blanket PO....you have to choose Order type: FO in ME21N....with Item category "B"(Limit)
For creating Blanket PO... You need not have to maintain material master.....Maintaining Acc.assignment Category in PO is mandatory....also you have to maintain Validity Period in Blanket PO...
As per SAP Best Practice.....for Blanket PO, GR is not possible.....you can directly post multiple Invoices for One Blanket PO....The validity and total Value of these Invoices for Blanket PO during LIV can be controled by tollerance keys LA and LD.

Framework order/blanket order

HI All,
I need help about frame work order. Before writing this thread , I did lot of search for answer but I am not successful in finding resolution hence this post.
I have created framework order; doc type FO. Item cat = B, For testing purpose , I entered validity dates as 21 nov and 22 nov in the PO. Now when I try to post invoice with invoice date (as well as posting date) as 11/23, system accepts without giving any error or warning about exceeding validity period. i.e. system is not stopping from posting invoice..! so what is the effect of validity dates on the invoice posting?
Another important issue is that , in the invoice I am not able to enter invoice amount. For this issue I searched a lot but there is no statisfactory answer. I know very well that on the MIRO screen , I need to click on the account assignment button and enter the amount. However while entering this amount, system asks for G/L account which I can not enter as it is grayed out. So not sure how to enter invoice for the framework order. Is there any config settings?
I did this testing after maintaining tolerance limits "LA-Amount of blanket purchase order" and "LD-Blanket PO time limit exceeded" in the config. For LA key I set up upper limit as say 1%. For LD I am not sure what to put so I put 1 in check limit field.
Please help me on this issue.
Thanks,
Ritesh

Hi Ritesh,
The Invoice for the Framework order should be posted same as we post invoice for other doc types.
The Acct assignment should be entered at the time of invoice only if there is multiple acct assignemnet OR the acct assignment category U-Unknown is selected in the PO.
The Tolerance limitis LA and LD will help you block the invoice for payment.
Rajesh Satope

What is Framework order and blanket PO

dear gurus,
kindly focus on what is Framework order and blanket PO ?
regards,
snb

Hi SNB,
Framework order (FO) is a document type which is provided by the standerd SAP.
It can be used for the consumable material ( Which is having low value & where making GR is not of worth like C category item.) & called as blanket PO. Here we need to mntion the validity period & target value or quantity as a restriction as well as need to mention item category as a "b".
Also it can be used for the procurement of extarnal services (Item category "D" ). Here we need to do the entry of services which have been performed & need to accept the same whereas in blanket PO, GR is not required.
At the end i would tel u that Framework order is the document type which can be used as blanket Po & procurement of services.
Reward if useful.
Regard,
Subhash

Blanket POs as a framework order and contracts

Hello,
In 6.0, could some tell me the difference between using a framework order (in ME21N ) and invoice planning to create a blanket PO the same thing as using a contract...?

Framework order is also known as Blanket PO.....which we use for the procurement of Low value Material with Long term planning....It is used as Mini Contract....
For making Blanket PO....you have to choose Order type: FO in ME21N....with Item category "B"(Limit)
For creating Blanket PO... You need not have to maintain material master.....Maintaining Acc.assignment Category in PO is mandatory....also you have to maintain Validity Period in Blanket PO...
As per SAP Best Practice.....for Blanket PO, GR is not possible.....you can directly post multiple Invoices for One Blanket PO....The validity and total Value of these Invoices for Blanket PO during LIV can be controled by tollerance keys LA and LD.

Framework order (blanket purchase order)

Hi SAP consultants,
can aanybody give me the senario of framework purchase order.
i tried but it shows error " gr indicator is on " also it asks pricing conditions which you do not mention in it.
best regards
sandeep

Hi,
For consumable materials such as Pen, paper & pencil for your office or electrode for welding of a machine(not required regularly) for with a short text in the Purchase Order (does not need to have Master Record) with Item Category ' B' i.e.limit, where in the PO validity period as well as the limits are to be mentioned for the simplicity of procurement. The doc type for PO is 'FO' (Framework Order).
The GR or Service Entry for the PO are not necessary in this as well as one need not to mention the account assignment category during creation of PO it can be 'U'-unknown & can be changed at the time of invoice verification..
The purchasing process will follow the same procedure as outlined in the Regular Purchase Order process above, except the invoices will be paid using the FB60 transaction. When paying the invoice, the Framework Order number must be entered in the Reference field.
Regards,
Biju K

To fill in the material number with item category u201CBu201D for Framework Order.

The use of framework orders (also referred to as blanket purchase orders) enables you to procure a variety of materials or services from a vendor up to a predefined maximum value (the value limit).
Instead of a specific delivery date, you specify a validity period for the order.
Goods receipts or the entry and acceptance of services performed are not necessary in the case of a framework PO and limit items.
The invoices are posted directly with reference to the purchase order, provided that the specified value limit is not exceeded. When the value limit of the PO is reached, or the validity period is exceeded, the system issues a warning message. It is possible to book the invoices, but these are blocked for payment.
During the phase of service performance, the cumulative u201Cactual" values (for the services actually performed) are continually updated in the underlying purchase. This enables you to monitor the progress of a procurement project on an ongoing basis. By comparing the "actual" value with the total value, you can always obtain an overview of the degree to which a budget for unplanned services or materials has been exhausted (i.e. see whether predefined limits have been reached or nearly reached).
So with the Framework Order type (FO) and item category u201CBu201D you get the error that it is not allowed to fill in the material number with item category u201CBu201D.
Please suggest me the possible solution to fill in the material number with item category u201CBu201D for Framework Order.
Best Regards,
Harisha

The Framework order type is specialy defined for lesser value procurements (ex: stationeries, cleaning services ....) which are all not worthy to create Material Master at all.
If you are very sure to fill the Material number, then proceed with some other document type.
In what circumstances you want to put material number in FO order?
Karthi.

Framework Order PO Invoice to be block if exceeded.

I am using framework order PO for invoicing planning. The problem is my user can perform invoicing more than total of invoice on PO. Example;-
Item: ABC
Quantity: 1
Net Price: $10
Invoice planning start from 01.01.2010 until 31.03.2010, this means for 3-month total of invoice is $30.
the problem happens when user perform invoicing more than $30. How to block invoice if invoice already fulfill or exceeded total of invoice on invoice planning on PO ?

Hi,
I would advice you to set up a tolerance key "LA" in the transaction OMR6 for your company code, but this limit check
does not work with parked invoices.
As described in note 134976:
For the tolerance checks, the system proceeds as follows:
LA Amount of blanket purchase order
The system determines the variance between the total from the value of
the purchase order item calculated up to now and the value of the
current invoice for the limit of the purchase order and compares this
variance with the percentage and absolute upper limits which are set.
Itwill check the individual invoice amount
against the Blanket PO Overall limit regardless of its parked or posted
status, but will not check splitted invoices amount if they are parked.
In the MM-invoice verification's processes,
as you create a new invoice (post it directly or as park) reference to
Blanket PO, or process (then post an created/parked invoice) reference
to Blanket PO, in these processes, if you input/change the invoice
item's amount or click button 'Post' to post the invoice, the system will make
tolerance check with the tolerance key 'LA'.
But, according to our standard concept, the system will make the check only
based on the invoice item's amount and the data 'Actual value', 'Overall
limit' in the Blanket PO.
Because the invoice item's amount in the
parked invoices would be not acculumated and saved into 'Actual value'
in the Blanket PO (it should happen only for posted invoices), the
amount in the parked invoice would be not considered in the tolerance
check.
Regards,
Edit

Framework orders and item categories

In looking at framework orders it would seem there are 2 item categories that would be valuable for my client, B and D. In reviewing the configuration, I see the following differences.
Item cat. B
Material Required - Not Allowed
Addit.Acct Assignment - Mandatory
Inventory Management - Not Allowed
GR indicator firm - Changeable in PO
Invoice Receipt - PO Item Linked
IR indicator - Firmed in PO
Item cat. D
Material Required - Not Allowed
Addit.Acct Assignment - Mandatory
Inventory Management - Possible
GR - PO Item Linked
GR indicator firm - Changeable in PO
Invoice Receipt - PO Item Linked
IR indicator - Firmed in PO
What other differences are there between the two item categories? I heard that one would default the quantity to 1 and removes the GR... Can anyone validate this?
Also, I noticed when using a framework order, the validity date is not being checked where the system is allowing invoicing to occur past the validity date. Is there some place in configuration that we can have this tolerance checked? Please give details.
Thank you.
Nguyen
Edited by: SCM Supply Chain Management on Sep 5, 2008 7:36 PM

Hi,
In case of Item Category B, there is not GR in this case. And in case of Item Category D, you have to create Service Entry Sheet (it is must), which creates a GR document in the background.
Refer Following links for the above;
[Blanket Purchase Orders|http://www.sap123.com/showthread.php?t=41]
[External Service Management|http://www.sap123.com/showthread.php?t=52]

Entering Invoices against a Blanket PO (Framwork Order)

Hi All,
I created blanket PO (doc type FO) with Acct Assignmnt "K" (Cost Center) and Item Catg "B" (Limit), but when I goto MIRO to enter the invoice and select the PO, the Invoice line item amount and qty is greyed out. So how do I enter any invoices (multiple) against a Blanket PO?
Thanks in Advance

On a framework order by setting the item category to B will invoke the
Limit functionality on the PO. The expected value will be the price
that appears on the PO. The overall value is the absolute limit that
the system will accept against this PO. The overall value can be larger
than the expected value, never less.
Using MIRO; (1) enter the invoice date, reference # and amount of
invoice. (2) enter the PO #, (3) ensure the display variant = account
assignment - cost center. (4) click on the yellow arrow icon in the
account assignment column, (5) enter the invoice amount on the first
line of the account assignment box, (6) click the BACK button on the
account assignment box, (7) the traffic light should now be green and
you can save your invoice.
regards
kunal
award if helpful

Framework Orders for Goods

Hi !
Framework orders continue to confuse me.
Question1:
I think I understand how Framework Order work with Item Categories B and D.
However, I cannot think of a scenario when a FO can be used for materials (item category = space, with or without account assignment i.e. inventorized or expensed).
If someone can give some examples, that would be great.
Question2:
Item Categories B and D can be used with a regular NB PO. So, it appears that the only thing a FO provides, that a regular NB PO does not provide, is a validity date range. Everything else that a FO can do, a NB can do too. Am I missing something?
Question3:
Is there something different in SAP called the 'Blanket Order', or is a 'Blanket Order' simply another word for a Framework Order?
Thanks for all your help!
Regards,
Anisha.

Hi
1. Frame work Order FO needs account assignment so it cannot be used for inventorized material.
Yes it can be used for consumables wherein u think that releasing a PO every time might be costly compared to utility of the product for e.g for office stationary loe pens,staplers etc - no need to issue PO every month , u can issue a FO for one complete year.
2. An FO provides a validity period as well as no GR is possible. U directly enter invoices . System checks that invoice date and value should fall within the allowed space
3. FO and blanket purchase order are same
another advantage is that u can use accnt assnmnt cat U during making of an FO and can enter multiple accnt assnnts at invoicing
Edited by: rajat kaushik on Mar 7, 2009 7:27 AM

Alerts for framework Order

Hello,
I have a question regarding framework order (or blanket order)
When I crate an order which is a frame order -
Does tha SAP have an option that I can define that when a 85% of the order is used/ only 15% is left
I will get an e-mail Alert?

Hi ,
Thank you for your quick response.
If understand correctly - If I want the system to send an alert when a framework orded value is about to expire, the SAP can send a massage to the buyer?
Is it an option that is built-in in the SAP ? or does it takes development?

Good Receipt for Limit orders/Framework orders

Hello Guruz,
Is it possible to have GR for Limit orders/Framework orders?
Regards

Hello,
Framework order is also known as Blanket PO.....which we use for the procurement of Low value Material with Long term planning....It is used as Mini Contract....
For making Blanket PO....you have to choose Order type: FO in ME21N....with Item category "B"(Limit)
For creating Blanket PO... You need not have to maintain material master.....Maintaining Account assignment Category in PO is mandatory....also you have to maintain Validity Period in Blanket PO...
As per SAP Best Practice.....for Blanket PO, GR is not possible.....you can directly post multiple Invoices for One Blanket PO....The validity and total Value of these Invoices for Blanket PO during LIV can be controlled by tolerance keys LA and LD in the T.Code:OMR6 for your Company Code.
In SAP, Blanket Purchase Orders refer to the business process where you have a Purchase Order with a validity period (start / end date) and a limit on the item. No Goods Receipt takes place. Payment is triggered by Invoice.
no Goods Receipt (GR) will take place, the GR indicator is switched off when the item category B is selected.
Regards,
Shailesh

Blanket PO ( Framework Order)

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