An SAP blanket purchase order is used to repeatedly purchase consumables or services from a vendor within a specific time frame. Consumables are items like pens, stationery, nuts, or screws, while services can include routine repair work and maintenance. The blanket purchase order has a set limit, and multiple invoices can be processed as long as the total does not exceed the limit. This article will discuss the process of creating an SAP blanket purchase order.
SAP Blanket Purchase Order
The SAP blanket purchase order process consists of the following basic components.
- Framework Purchase Order Creation
- Invoice Creation
Framework Purchase Order Creation
The SAP blanket purchase order can be created using transaction code ME21N. Please input the necessary details for each blanket item from the chosen vendor in the header section of the purchase order.
- The document type FO - Framework Order is used to categorize the order as a blanket purchase order.
- Please enter the Vendor number in the vendor field and purchasing organization, purchasing group, company code in the Organizational Data tab.
- To set the duration for making purchases against the blanket purchase order, go to the Additional Data tab in the header section and enter the Validity Start and Validity End dates. In this example, a one-year validity period was set from 10/08/2023 to 09/08/2024.
The example header data is shown below.
Figure 1 Blanket Purchase Order - Header Data
In the item section of the SAP blanket purchase order, please input the following details:
- To specify a cost center and charge all invoices to it, select account assignment category K - Cost center from the list, It can include both standard and customized categories.
- When choosing item category B, it indicates the type of procurement and activates specific features. For instance, item category B automatically sets the purchase order quantity to 1. Additionally, it eliminates the need for a goods receipt for the blanket purchase order.
- Please provide text for the item.
- For the procurement, we will be using plant DE01 – Interstellar Germany 1.
The example item data is displayed below.
Figure 2 Blanket Purchase Order - Item Data
Please click on the Item Detail button to expand the section and enter the requested information.
To set the overall limit value, go to the Limits tab and enter it. The total of all procurements for this purchase order must not exceed this limit during the validity period. If there should be no maximum spend, select the No limit tickbox for the blanket order. In our example, we set a limit of 10000 EUR as shown below:
Figure 3 Blanket Purchase Order - Limits Item Details
Next specify the cost center and G/L account for all invoices based on the account assignment indicator K specified in the item section. In this example, cost center 1001 and G/L account 400000 were specified.
Figure 4 Blanket Purchase Order - Account Assignment Item Details
After pressing Enter and saving, the purchase order will be created as a framework order.
Create Invoice
Once an SAP blanket purchase order is received, invoices can be posted immediately. It is important to note that item category B eliminates the need for a goods receipt. Invoices should be posted with reference to the purchase order number using transaction code MIRO.
Go to tcode MIRO and on the Basic Data tab enter invoice date, amount, reference. Under Payment tab fill in baseline date. Next in PO reference enter our framework order number.
Figure 5 Invoice Creation – Basic Data
You will see the error for balance not zero. To fix it, you will have to enter amount for the PO line item under Account Assignment, shown below.
Figure 6 Invoice Creation – PO Reference
Once you click on Edit, a pop up will appear where you can enter the correct amount. Check it and if no messages, click on Back button.
Figure 7 Invoice Creation – Account Assignment
Now on the main screen you will see the balance without the error. You can post the invoice by clicking on Save button.
Figure 8 Invoice Creation – Balance Zero
After posting the invoices, the invoice receipts will be visible on the Purchase Order History tab. In this example, three invoices were created with a total of 9000 EUR, as displayed below.
Figure 9 Blanket Purchase Order History
Please be aware that the blanket purchase order limit has been set at 10000 EUR. If an attempt is made to create an invoice that exceeds this limit, an error message will be displayed.
Figure 10 Blanket Purchase Order - Limit Error Message
