What is a “blanket purchase order”?
A blanket purchase order is a PO in which a customer places with its supplier to allow multiple delivery dates over a period of time, often negotiated to take advantage of predetermined pricing. It is normally used when there is a recurring need for expendable goods or services.
When should a department use a blanket purchase order?
Departments may identify a requirement to issue a purchase order to a supplier where the delivery of the goods and/or services occurs multiple times over a distinct period of time.
For example, consulting services that may be quotes at a price for the entire period but will be billed in installments based on when the consultant actually works, then submits an invoice periodically to cover only that particular period of work.
How do I create a blanket purchase order?
There are two types of blanket purchase orders:
- Fixed Price – An agreement in which the supplier will invoice Rice on a pre-determined, recurring schedule (ie: Monthly, Quarterly) for a fixed amount
- Draw Down – An agreement in which the supplier will invoice Rice at irregular intervals and irregular amounts, either when work is complete, or goods are delivered.
To create a fixed price PO, you will create an Order by Quantity for recurring schedule. (Monthly – 12, Quarterly – 4)
To create a draw down PO, you will create an Order by Dollar Amount for the total amount of the agreement.
What if the blanket PO is created for the incorrect amount and needs to be increased or decreased?
Change orders are possible on your blanket purchase order, so you can adjust the price or quantity as needed.
When is the best time to complete a blanket purchase order?
The best time to complete a blanket purchase order would be before the start of your project. All invoices that are sent to payment@rice.edu must have the blanket PO number listed in order to ensure timely payments.
Who can I contact with questions?
For questions regarding a blanket PO, please submit a service request in iO.