Difference between Blanket PO and Service PO

Question

Hi,
     Can anyone let me know the difference between the blanket PO and the service PO. Please let me know in detail.
Regards,
Ashwin

Answer 1

Dear,
BLANKET PO : For consumable materials supply for long period and reduce the entry work each time.
You can create a purchase order which has a longer validity period (for example a year) and an item-specific value limit. Using Blanket purchase order, it is possible to procure different consumable materials or external services, for which more detailed individual processing (purchase order, goods receipt, invoice entry) is considered uneconomical.
The materials or services are grouped under a heading or super ordinate term and represented as an item of blanket order. Prices for the individual materials are not recorded in purchase order.
A key advantage of blanket purchase order is reduction in processing costs.
-     Different materials and/or services are procured over a long period with a single PO item.
-     It is not necessary to issue separate purchase orders for individual procurement transactions.
-     There is no goods receipt or service entry process.
-     Neither RFQ nor contract can be created.
     It is possible to change the account assignment when entering invoice.
     You can also switch from single to multiple account assignment during invoice entry.
     If you have entered account assignment U Unknown in PO item, you must manually enter account assignment data
when entering invoice (subject to change has defined as permissible in CUSTOMIZING u2013 MATERNAL MANAGEMENT u2013 PURCHASING u2013 ACCOUNT ASSIGNMENT u2013 MAINTAIN ACCOUNT ASSGINMENT CATEGORIES).
CHARACTERISTICS OF BLANKET PURCHASE ORDER
     Order type FO (Framework order)
o     Validity period in header of purchase order (field selection).
     Item category B (Limit)
o     Limits in the item
o     No material number
o     Account assignment category U allowed
o     No goods receipt or service entry
     Accounting data for the item suggested in invoices
     Additional or multiple account assignment possible in invoice verification
     Check of validity period and limit in invoice verification.
To be able to work with validity periods and limits in purchase order you must use document type FO and item category B.
-     Document type FO enables you to specify the validity period at PO header level and use the item category B for limit items.
-     You cannot specify a material number in a PO item with item category B.
-     You have to specify a material / service group.
Regards,
Syed Hussain.