Creating Blanket Purchase Orders

In SAP Ariba Buying and Invoicing, Blanket Purchase Orders (BPO) are a type of compliance contract. BPOs can be either release or no-release order contracts.​

​BPOs are issued to one supplier for multiple purchases of specific goods or services for a specific time period and a predetermined amount that cannot be exceeded. This allows purchases, within the terms of the order, to be charged to that specific blanket order.​

BPOs are identified by a BPO prefix, for example, BPO123.

Defining a contract as a BPO contract provides additional benefits compared to a non-BPO contract:

• BPOs are sent to suppliers on the SAP Business Network. 
  • Suppliers can view BPOs and their accumulators.​
  • BPO contracts and release orders are sent to suppliers as a Purchase Order on the SAP Business Network.​
  • Suppliers can punch-in to your site to view their list of Contracts.
• Elements of the BPO can be hidden from the supplier when sending.

  For example, total amount of the BPO would be visible in SAP Ariba but not to the supplier on the network.

• Maximum limits are required for BPOs.

Steps to Create Release Blanket Purchase Orders:

1. Select Create, then choose Contract Request​.
2. Set Release Required to Yes.
3. ​Choose Yes for the Blanket Purchase Order option.​
4. Define the contract limits, pricing terms, and other necessary information.

   Optionally, decide whether or not toHide Unit Price from Supplier or Hide Amount from Supplier.

5. Submit the contract request for approval.​
6. Once approved, the blanket purchase order is created and sent to the supplier on the SAP Business Network.​

Purchasing users can create requisitions that include line items associated with the blanket purchase order.