BUSINESS PROCESS PROCEDURE
Title: Display Purchase documents by Requirement Tracking #
Organization/Area: Materials Management / Purchasing
EUP Category:
File Name: 931415108.doc Release: R/3 4.6B
Responsibility: Purchasing Group Status: Pending
Overview
Trigger:
A Requirement to create a Blanket Purchase Order
LOGISTICS > MATERIAL MANAGEMENT> PURCHASING > PURCHASE ORDER > CREATE. The
transaction code is ME21N: The transaction name is Vendor/Supplying Plant Known.
In SAP a blanket order is referred to as a Frame Work Order – Document Type FO
Tips and Tricks
Creating a blanket purchase order utilizes the same transactions as the creation of a standard purchase
order except for the exceptions listed below. The differences between a Blanket Purchase Order
(framework order) and a standard purchase order will be presented in this BPP. See the Create Purchase
Order BPP for an in depth description of the screen displays and any additional explanations related to
the creation of purchase orders.
Screen Field Values: Due to configuration unique to the University of Tennessee, all fields that are
displayed on the screens will not be used. Instructions and values will be given on those fields that will
most likely be used and require your input. It is advised that values not be put in those fields that have
not been defined for your use. Should you put a value in these fields, you may not accomplish the
creation of a blanket purchase order in the manner desired. If you want to review a description of a field
not explained in this BPP, place the cursor in the field and select the F1 function key.
Screen Displays: SAP screens displayed in the BPP are for demonstration purposes only. If you go
through the screens in your practice, do not use the values in the screens listed below.
When to Use a Blanket Order Transaction
Last changed on: Last changed by: Version: 4.6B Page 1 of 7
08/15/2000 David Marks
/conversion/tmp/activity_task_scratch/931415108.doc
BUSINESS PROCESS PROCEDURE
Title: Display Purchase documents by Requirement Tracking #
Organization/Area: Materials Management / Purchasing
EUP Category:
File Name: 931415108.doc Release: R/3 4.6B
Responsibility: Purchasing Group Status: Pending
Blanket Purchase Orders (BPOs) will be used to purchase items that will be purchased on a repetitive
basis over an extended time period – usually up to a year or longer. There are two type of Blanket
Purchase Order that can be utilized:
Blanket Orders with account assignment – these types of blanket orders will encumber designated cost
centers (accounts) upon their creation. If you want to encumber your funds for the requirements of the
blanket order up front – use this type of Blanket Purchase Order. This type of blanket purchase order
would be department specific and would only be used by the department requesting a blanket purchase
order with designated account assignment. When creating this BPO type use account assighnment “A”
or “K”
Blanket Orders without account assighnment – these types of blanket orders will not encumber a cost
center (account). Encumbrance of funds will take place at the entry of an invoice. This type of blanket
order should be used when you are unsure about the quantitie or amount of funds to be spent against the
blanket purchase order. This type of blanket purchase order can be issued to a specific department or
can be issued against a contract document. When issued against a contract, only one blanket order
needs to be processed for the contract. All departments can use the same blanket purchase order as
account encumbrance and assighment take place at the time of payment of the invoice. When creating
this BPO type use account assignment “U”.
In the example below a requisition is being converted into a blanket purchase order. However, a RFQ
could also be converted into a blanket purchase order or a previous blanket purchase order could be
copied. Note – when copying from a previous BPO/PO and the vendor is different from the
vendor of the BPO being created, enter the vendor number of the new vendor first before
copying the document. Please note that the difference from a regular purchase order is the words
“Framework order” that are used in place of Standard PO. You can select the Framework order from the
pull down box as shown below.
STEP 1: The first step is to choose Framework Order from the drop down box. Take this step before
doing anything else. . If copying from a previous BPO/PO and the vendor is different from the vendor of
the BPO being created, enter the vendor number of the new vendor first before copying the document.
Last changed on: Last changed by: Version: 4.6B Page 2 of 7
08/15/2000 David Marks
/conversion/tmp/activity_task_scratch/931415108.doc
BUSINESS PROCESS PROCEDURE
Title: Display Purchase documents by Requirement Tracking #
Organization/Area: Materials Management / Purchasing
EUP Category:
File Name: 931415108.doc Release: R/3 4.6B
Responsibility: Purchasing Group Status: Pending
Last changed on: Last changed by: Version: 4.6B Page 3 of 7
08/15/2000 David Marks
/conversion/tmp/activity_task_scratch/931415108.doc
BUSINESS PROCESS PROCEDURE
Title: Display Purchase documents by Requirement Tracking #
Organization/Area: Materials Management / Purchasing
EUP Category:
File Name: 931415108.doc Release: R/3 4.6B
Responsibility: Purchasing Group Status: Pending
STEP 2: Adopt the Purchase Requisition into the Purchase Order Create Screens. Note below that the
account assighment is “K”. You will encumber funds if this assignment is used. To create a blanket PO
that will not encumber funds use account assighment “U”
Last changed on: Last changed by: Version: 4.6B Page 4 of 7
08/15/2000 David Marks
/conversion/tmp/activity_task_scratch/931415108.doc
BUSINESS PROCESS PROCEDURE
Title: Display Purchase documents by Requirement Tracking #
Organization/Area: Materials Management / Purchasing
EUP Category:
File Name: 931415108.doc Release: R/3 4.6B
Responsibility: Purchasing Group Status: Pending
STEP 2A: Depicted below is the creation of a BPO using account assighment “U”. See the Header and
item Overview screens depicted below. If account assighment “U” is used, funds will not be encumured.
When creating a Blanket Purchase Order without an account assignment. In the “A” (account
assignment) column a value of “U” is input. In the “I” (Item Category) column a value of “B” is input.
NOTE: IN A BPO THAT DOES NOT HAVE A SPECIFIC ACCOUNT ASSIGNMENT (U), THE SAP
SYSTEM WILL DEFAULT TO A QUANTITY OF 1 IN THE PO QUANTITY AND THE NET PRICE WILL
BE THE EXPECTANT VALUE AS DEFINED IN THE LIMITS FIELDS AS DEFINED BELOW.
As in the creation of a purchase order, standard header PO information is also required in a Blanket
Purchase Order. In addition to the information required in a standard PO, the validity start and validity
end date of the blanket purchase order is required in the “Additional Data” tab as shown below.
Last changed on: Last changed by: Version: 4.6B Page 5 of 7
08/15/2000 David Marks
/conversion/tmp/activity_task_scratch/931415108.doc
BUSINESS PROCESS PROCEDURE
Title: Display Purchase documents by Requirement Tracking #
Organization/Area: Materials Management / Purchasing
EUP Category:
File Name: 931415108.doc Release: R/3 4.6B
Responsibility: Purchasing Group Status: Pending
STEP 4: The same information that is required in a standard PO for the item details is required in the
item details of a blanket purchase order. In addition, there is a Limits tab that is also a required input.
There are two options. One option is to select an overall limit and an expected value. The overall limit is
the upper limits that you do not want the blanket purchase order to exceed. The expected value is the
value at which you want to be warned that you are approaching the overall limit. The other option is to
select the No Limit box. If this box is checked, the spending against the blanket order will be unlimited
with no overall limits imposed and a value of 0.00 will be defaulted int the net price section. This option
may be appropriate if a blanket PO is placed against a contract. Also, if account category of a “U” is
used, the account assignment tab will not be available.
Last changed on: Last changed by: Version: 4.6B Page 6 of 7
08/15/2000 David Marks
/conversion/tmp/activity_task_scratch/931415108.doc
BUSINESS PROCESS PROCEDURE
Title: Display Purchase documents by Requirement Tracking #
Organization/Area: Materials Management / Purchasing
EUP Category:
File Name: 931415108.doc Release: R/3 4.6B
Responsibility: Purchasing Group Status: Pending
With the exception of a few additional pieces of information and changes as reflected above, the blanket
purchase order is created in the same way that a standard PO is created. Consult the creation of a
standard PO for additional information.
Last changed on: Last changed by: Version: 4.6B Page 7 of 7
08/15/2000 David Marks
/conversion/tmp/activity_task_scratch/931415108.doc
