A blanket purchase order (BPO) is a long-term agreement between an organization and a supplier to deliver goods or services with a set price on a recurring basis over a specified time period.

What is the difference between a purchase order and a blanket purchase order?

Unlike a regular purchase order, however, blanket purchase orders cover a period of time and will have multiple invoices charged against the same purchase order to meet consistent and recurring business needs within the established time frame. While the need is consistent, the particulars of any one order may vary.

What is blanket purchase order in SAP?

An SAP blanket purchase order is used for purchasing consumables or services from a vendor which can be repeatedly procured during a specific period of time. ... A limit is set on the blanket purchase order and multiple Invoices can be processed provided that the total of all the invoices does not exceed the overall limit.