These days, we will be able to see many business people around us who are into various businesses. And these businessmen enter into multiple types of agreements with numerous stakeholders. Purchase orders can be considered agreements that business people/ sellers enter with their customers. This document contains details such as:
· Product/ services to be delivered
· Delivery date
· Other terms and conditions concerning the transaction like price
Various types of purchase orders have minor differences from each other, which plays a significant role in keeping transactions efficient. In this blog, we will look at various categories of daily purchase orders used by firms. Reading this blog will help those passionate about purchase order data entry or purchase order entry, understand the multiple types of purchase orders used these days.
1. Standard Purchase Orders (SPO)
Standard Purchase Orders, which organizations use for making one-time orders, is the format known to all of us. Making a purchase order data entry using this format helps us place orders with vendors with whom we will place orders only for a single time.
2. Planned Purchase Orders (PPO)
Many of us, even someone involved in making some purchase order entry, are likely confused between a standard purchase order and a planned purchase order. However, there is a thin line of difference between the two of them. Organizations use Planned Purchase Orders when the delivery date and destination are unknown. Additionally, organizations are known to release these individual purchase orders upon requirement. Many times, organizations tend to use PPOs to restore and replenish items that they anticipate using in the long run.
3. Blanket Purchase Orders (BPO)
Also known as a standing order, blanket purchase orders are made with the vendors keeping in mind the future purchases for which we are unaware of the quantity. Here, many BPOs make the purchase order data entry by including the exact details like those included in the case of a PPO.
4. Contract Purchase Orders (CPO)
While making this purchase
order entry, you enter the minimum amount of details. Such purchase orders
can be considered an indicator that there shall be transactions/ orders
sometime in the future and gives us guidelines regarding when they can occur.
Therefore, it helps us create purchase orders for the future, which we will
raise as per the contract.
