Standard Purchase Order
Planned Purchase Order: A planned purchase order is a long-term agreement committing to buy it items or services from a single source. We must specify tentative delivery schedules and all details for goods or services that we want to buy, including charge account, quantities and estimated cost. EX: Buying goods for Christmas from a specific dealer.
Contract Purchase Order: We can create contract purchase agreement with our supplier to agree on specific terms and conditions without indicating the goods and services that we will be purchasing i.e. for Rupees amount we must supply this much quantity. We can later issue standard PO referencing our contracts and we can encumber these purchase orders if we use encumbrance accounting.
Blanket Purchase Order: We can create blanket purchase agreements when we know the detail of goods or services we have plan to buy from a specific supplier in a period , but we do not yet know the detail of our delivery schedules. We can use blanket purchase agreements to specify negotiated prices for our items before actually purchasing them