Blanket purchase contracts

A blanket contract exists when a customer or supplier has agreed to buy or supply a specific quantity of an item, for a specific price over a specific period.

No agreement exists, however, regarding the quantity to be supplied in any one delivery, how many deliveries should be made, or any particular delivery dates.

If a valid contract exists, items are automatically called off against it during Purchase Order Entry (POE) or Sales Order Entry (SOE).

Note:  When a price is set on a blanket contract, the system takes this price instead of any formulae set up for the item.