When a company buys goods or services, it usually uses a Purchase Order (PO). But did you know there are two types – Regular Purchase Orders and Blanket Purchase Orders? Both are useful, but they serve different purposes. Let us break it down in simple terms.
Table of Contents
Blanket Purchase Orders vs Regular Purchase Orders in Business Central
Regular Purchase Order (PO)
A regular PO is created when you want to buy something right now or in the near future.
- Use case: You know exactly what you need and when you need it.
- Example: A shop orders 100 chairs from a supplier, and the supplier delivers them within 7 days.
- Key point: It is a one time order for a specific quantity and date.
Blanket Purchase Order (BPO)
A blanket PO is like a long-term agreement with your supplier. Instead of ordering everything at once, you agree on a total quantity or value and then release smaller orders over time. That means you may create multiple Purchase Orders based on single Blanket Order is possible with different schedule time as well.
As you can the window looks like very much similar to normal PO page. However where “Make Order” is the button used for converting the individual Blanket Purchase Order to regular Purchase Order based delivery schedules. If you needs to process flow of this then put your comment I will create helpful content for that as well.
- Use case: You know you’ll need the same item many times in the future, but not all at once.
- Example: A company agrees to buy 1,000 laptops from a supplier over the next 12 months, but they order 100 laptops every month.
- Key point: It helps lock in prices, manage long term needs, and avoid creating too many POs.
Blanket PO vs Regular PO : Quick Comparison
Following table shows the quick comparison between Blanket PO and Regular PO.
| Feature | Regular PO | Blanket PO |
|---|---|---|
| Purpose | Immediate Purchase | Long Term Agreement |
| Order Frequency | One Time | Multiple Releases |
| Flexibility | Fixed Delivery | Flexible Deliveries |
| Best For | Urgent or One time needs | Repeated Purchases Over Time |
When to Use Which?
Use a Regular PO if you need items quickly and in a single delivery.
Use a Blanket PO if you want to manage repeated purchases and build a better relationship with your supplier.
Blanket Purchase Orders are a smart way to save time, control costs, and simplify procurement in Business Central.
FAQ : Blanket PO vs Normal PO
A Regular PO is for a one time purchase with immediate delivery, while a Blanket PO is a long term agreement where items are released in parts over time.
You should use a Blanket PO when you need the same item multiple times in the future. It helps you lock prices, avoid repeated PO creation, and streamline supplier agreements.
Yes. In Business Central, you can release lines from a Blanket PO to create Regular POs whenever you need delivery.
A Blanket PO is better for cost control as it locks prices for a longer period and reduces administrative work.
Absolutely! Even small businesses benefit from Blanket POs if they regularly buy the same products (like office supplies or raw materials).
The main risk is over-committing to quantities you may not need. Always plan carefully before signing a long term Blanket PO.
