Question regarding Blanket Purchase Order by Category functionality

Hi All,
I have a requirement that Strategic buyers will fill agreement with supplier by item Category level
Agreement will be on Price level and will have expiration date
The category level will contain list of items Part numbers which are the same item from technically :
Our business is on the electronics contract manufacturing and we are producing for Customers from the High Tech industry .In order to keep each customer process and unique environment we are coding the item Part # per customer since of that the same electronic component having different part # per customer
Each night we running MRP run (ASCP) and the Planner release Planned order to request ion
Is there a way to support this process as the following :
1 create sourcing rule by category set and assigned the relevant items to the category set
2 Create Blanket Po by Category level with expiration date and Price
When releasing Planned order from ASCP (Mrp) it is Creating requisition on item level
Will it Auto release the Pr to Po based on the Blanket by Category level and derived the Price?
The requirement is that the purchase requisition will derive the price from the agreement based on assigned Category level and will automatically convert to Purchase order
I will appreciate your advise
Thanks

Hi,
Sourcing Rules are not created at Item or Category Level.
What you can do is
1. create a Sourcing Rule and Assign it to Category-Organization Level.
2. Create a BPA for the category
3. Create an ASL (Approved Supplier List) and give the BPA Reference in that.
Try doing this..this should help to some extent.
Regards
Arvind

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Invoice verification(MIRO) for blanket purchase order

Dear All,
I am tring to enter invoice via. MIRO againest a blanket purchase order. The blanket purchase order is a Frame workorder with account assignment category 'U' & item category 'B'. I am getting error 'Enter G/L Account' while entering invoice varification in MIRO. I am entering the Amount in the 'Acct assgt' column (error mark). However the GL account & cost center field is gray out. System not allow me to enter the GL account & cost center in MIRO. Also I am unable to change the account assignment category from 'U' to 'K' in MIRO.
Can some one guide me how to resolve the above problem.
Your earlier input would be highly appriciated.
Thanks,
spsahu

Hi
Please check the Variant being used as per the Standard All the fields are in Entry Mode only.
Please use the Layout 7_6310 All information & Check
Check in OLMRLIST the Layout for transaction MIRO & Program SAPLMR1M
Please ensure that you use Document type FO in Creating Blanket PO's
Thanks & Regards
Kishore

Blanket Purchase Order

i created blanket purchase order with item category B and account assignment as K
PO created
and i am trying to enter invoice
can any one tell me how to do this..i failed several times
finally in material tab of invoice receipt i entered material number and PO quantity and then i am able to post the invoice..
please explain i did it correctly or tell me the right format
thank you

Hi,
In Blanket PO 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., select document type as FO and item category B and Account Assignment category K & provide the limits to the validity periods and the value limits in the PO.
Multiple invoices can be processed in miro. One thing is that invoices must be processed within the validity period specified in PO. The total value of invoices must also not exceed the limit specified in PO item. The validity period is specified on PO Header Level, while the Limit is on Item level
process :
1. Make the Blanket PO. with doc type FO and item cat B and Account Assignment category K, with GL A/c and costcenter.
2. Because no Goods Receipt (GR) will take place, the GR indicator is switched off when the item category is selected
3. Based on the PO dates, we directly make the Invoice and pay to the vendor
Regards
Raj.

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 MRP

Gurus,
How MRP considers Blanket purchase Order - supplies..suppose i have a BPO for 100 Items/1 yr..that means roughly every qtr 25 numbers.But we are not asking the suppliers to supply the good until we ask him..this contract is to reduce lead time ..still buyer should be aware of the demand for this items..if BPO is not there..he will get requisitions..but now MRP will not recommond PR's as BPO is in place..pl advise..how to handly this case/
I couldnt find much documentation on BPO and MRP.
Rgds,

MRP does not consider BPO as supply. Only blanket releases are considered as a supply.
So in your case, MRP WILL recommend PR whenever it sees the demand. And the buyer will be able to convert the PR into a Blanket release.
Hope this answers your question
Sandeep Gandhi
Independent Techno-functional Consultant

Query of blanket purchase order

Hi experts
can anyone explain how to do invoice verification for blanket po?
thanks in advance!

Hi Mark,
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.
Multiple invoices can be processed. Main point is that invoices must be processed within the validity period spesified in PO. The total value of invoices must also not exceed the limit spesified in PO item. The validity period is spesified on PO Header Level, while the Limit is on Item level. The creation of Purchase requisition is Optional.
Purchase Requisitions doesn't have validity period fields, although the limit can be spesified on item level. So if users create PR's then they could type the validity period simply as text in one of the long text fields.
During invoicing, if the date is outside validity period or the amount is bigger, either a Warning or Error will occur. This setting is done in customising.
Examples on where this business process can be used include: Services: example buying flowers, travel. Perticular if the receipt process is not very formalised. It is also sometimes used for utilities (water, electricity...).
Look at processes where Financial invoices (no PO) are used. To improve control, a lot of vendor invoices could be moved to Blanket Order process.
Lets look at key fields in the Purchase Order
The Overall Limit is the value that will be used to in the check during invoicing. If Commitment is switched on in Costing, the Expected value is the value of the commitment against in this case the Cost Centre. The actual will be posted during invoicing.
Account assignment is mandatory, so this process is non stock purposes only. Stock can not be procured using this method (For stock a GR is required).
Because no Goods Receipt (GR) will take place, the GR indicator is switched off when the item category is selected.
Regards,
Ashok

How to process a Blanket Purchase order?

Hi,
Can you please let me know how to process a blanket purchase order received from a customer?
Can we create a sales order based on the customer's blanket purchase order?
Please help me out with this issue.
Sincerely,
Puja

Dear Puja,
You can create Sales Order ....with reference to Blanket / Frame Purchase Order. This Frame PO contains, Validity and Limit.
Based on this info, you can create Blanket Sales Order.
You can split the blanket sales orders relevant to the customer PO.
Regards - Muralidhara

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.

BLANKET PURCHASE ORDER MIRO

HI,
I HAVE MADE ONE BLANKET PURCHASE ORDER VALUE LIMIT OF RS.1,00,000.
I HAVE DONE THE MIRO ALSO OF ABOUT RS.1,20,000 AGAINST THE SAME PURCHASE ORDER.
THERE SAP SHOULD GIVE ME THE ERROR MESSAGE BUT IT NOT HAPPEN AND ALSO HOW I WILL SEE THE STATUS OF THE BLANKET PO LIKE HOW MUCH INVOICE I HAVE RECEIVE AGAINST THE SAME PO.
HELP ME.
REGARDS,
ANANT

Hello,
After doing MIRO for Blanket PO you should be able to see the PO history in which it will give you the invoice number.
Entry during MIRO
Dr - G/l account given in PO
CR - Vendor A/c
Regards,
Shailesh

BLANKET PURCHASE ORDER WITH RELEASE

HOW TO DO CONVERSION OF BLANKET PURCHASE ORDER WITH RELEASE
,PLZ SEND SAMPLE CODE OR UNIT TEST(UT) DOCUMENT.

Hi Suresh
you can define the copying rules with the help of following customization.
SPRO>Purchasing > Purchase Requisitions > Text for Purchase requisitions > define copying rules.
define text types and linkages.
SPRO>Purchasing>purchase order>Text for purchase order
Define copying rules for header and item text for PO as per the requirement.
Best Regards
Nishant Shende

Blanket Purchase Order - process

Hi,
Can anyone provide me, the complete procss abt Blanket purchase order i.e the complete cycle.
as well, let us know, in whihc case , they will use this blankent orders.
thanks in advance.

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.
Multiple invoices can be processed. Main point is that invoices must be processed within the validity period spesified in PO. The total value of invoices must also not exceed the limit spesified in PO item. The validity period is spesified on PO Header Level, while the Limit is on Item level. The creation of Purchase requisition is Optional.
Purchase Requisitions doesn't have validity period fields, although the limit can be spesified on item level. So if users create PR's then they could type the validity period simply as text in one of the long text fields.
During invoicing, if the date is outside validity period or the amount is bigger, either a Warning or Error will occur. This setting is done in customising.
Examples on where this business process can be used include: Services: example buying flowers, travel. Perticular if the receipt process is not very formalised. It is also sometimes used for utilities (water, electricity...).
Look at processes where Financial invoices (no PO) are used. To improve control, a lot of vendor invoices could be moved to Blanket Order process.
Lets look at key fields in the Purchase Order
The Overall Limit is the value that will be used to in the check during invoicing. If Commitment is switched on in Costing, the Expected value is the value of the commitment against in this case the Cost Centre. The actual will be posted during invoicing.
Account assignment is mandatory, so this process is non stock purposes only. Stock can not be procured using this method (For stock a GR is required).
Because no Goods Receipt (GR) will take place, the GR indicator is switched off when the item category is selected
Read the Rules Use the Search...........

Tolerance Key LD: Blanket purchase order time limit exceeded

Hi All,
Can anybody tell me how the Invoice Block Tolerance Key <b>LD: Blanket purchase order time limit exceeded</b> works.
As per my understanding, we need to maintain no days in the Tolreance Key LD , so that it checks for the Contract Validity & the Invoice Date with the tolerance limit days & block the invoice if it exceeds.
But, it's asking for the value in the LD tolerance limit setting !!! Hope it should be no of days !!! Kindly let me know.
Also let me know if you can explain me the settings & steps to run this scenario.
Thanks!
Nanda

Steve,
Can you answer Nanda's question? I haven't really used this LD tolerance previously. I tried this on my sandbox system and can see the cause for his confusion although I am unable to explain it.
Thanks,
H Narayan

SRM 7.0: Purchase Order Response (BUS2209) functionality, workflow

Hello,
We're trying to configure the purchase order response (BUS2209) functionality. We have configured the BUS2209 document types and numberranges and maintained the 'purchase order response expected' marker for certain vendors. We therefore expected to be able to post a POR via the Purchasing:PO powl however the 'create POR manually' and other 'POR actions' are greyed out. Has anybody been able to post BUS2209 documents in an SRM 7.0 system?
Also if we look at: IMG -> SAP SRM -> SRM SERVER -> Cross-Application Basic Settings -> Business Workflow -> Define Process Levels -
No BUS2209 object is list, no workflow can be maintained (you can't add anything manually either). We have activated the Process Controlled Workflow for all business objects.
Any help and input is very much appreciated.
Kind regards,
Tim

Hi Tim,
I did two things:
1) I activated the start conditions for the three POR workflows as supplied by SAP. I still think this has nothing to do with the problem, but you never know.. The setting is located in the IMG under Workflow -> Application-controlled wfl, or similar (I don't have access to the system right now).
2) I created a tolerance group Zxxx with tolerance key PR; I used 'limit as percentage' of 5% in both upper and lower limit. I assigned the key Zxxx to the attribute TOG of a user (with the role /SAPSRM/OP_PURCHASER) in PPOMA_BBP.
This caused the options to be enabled. I then successfully created a PO response manually for a PO, which in turn caused a change version of the PO to be created. This change version had to be approved in order for the changes in the POR to be valid.
Regards
t7

Limit/Blanket Purchase Orders and CCM Catalogs

Hi,
Is it possible to put Limit/Blanket Purchase Order items into CCM Catalogs?
John

Hi
It is possible to put anything into a catalog - however that does not mean the catalog item will be interpreted or acceptable to the SRM_SERVER, when passing data from a catlaog, the provided information has to be sufficient to allow for successful creation of a procurement document (not a limit/blanket order), i.e. you need either Material Number or Description, based on which of these are passed you may also then require vendor/UOM/quantity, price etc, it is clearly defined in note [395312|https://websmp130.sap-ag.de/sap(bD1lbiZjPTAwMQ==)/bc/bsp/spn/sapnotes/index2.htm?numm=395312].
Regards,
Jason

Blanket purchase orders

Hi,
What is the difference between Blanket purchase order and Frames work order and In what situations we create these PO's.?

Hi
Actually Blanket purchase orders has to create the document type as Frame work order.
Balnket PO can be used to purchase material or services upto certain predefined maximum value (value limit) from a vendor.
Nature of materials or services are the purchase of office supplies and minor services required during course of the year.
Blanket PO have the document tyupe FO, instead of specific delivery date in a normal PO here we need to enter the specific valid period.
For a balnket PO no need of goods receipt, only invoice can be done.
Account assignment needs only at the time of invoice verification only.
Hope this will give you an idea......
Regards,
Govardhan

Question regarding Blanket Purchase Order by Category functionality

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