Oracle Fusion Purchasing provides the following purchase order types: (1) Purchase order, (2) Blanket purchase agreement, and (3) Contract purchase agreement.
- Purchase Order
You generally create a purchase order for a one-time purchase of various items. You create a purchase order when you know the details of the goods or services that you require, estimated costs, quantities, delivery schedules, and accounting distributions.
- Blanket Purchase Agreement
You create blanket purchase agreements when you know the details of the goods or services you plan to buy from a specific supplier in a period, but you do not yet know the detail of your delivery schedules. You can use blanket purchase agreements to specify negotiated prices for your items before actually purchasing them. Prices for items can be negotiated on a blanket purchase agreement by a procurement business unit which can then be made available to multiple requisitioning business units. Blanket agreements are also used in defining the locally hosted catalog.
- Contract Purchase Agreement
You create a contract purchase agreement with your supplier to agree on specific terms and conditions without indicating the goods and services that you will be purchasing. You can later issue purchase orders referencing your contracts using terms negotiated on a contract purchase agreement by a procurement business unit which can then be made available to multiple requisitioning business units.