Blanket Orders

Guidelines for the use of blanket orders

A blanket order is a fixed-term contract or basic agreement between the university and a supplier. It is issued to a specific supplier to address recurring purchases of consumable supplies or services, for a specific period of time. A blanket order is issued to support an existing contract, or independently, after all terms and conditions have been negotiated.

A blanket order should be used when the ordering department will:

• purchase repetitive, specified services or items, or categories of items, from the same supplier, which are purchased and paid in a predictable manner over a specified time period

• order standard materials or maintenance supplies which require numerous shipments

• enable the buyer to obtain more favourable pricing through volume commitments.

Blanket orders generally should NOT be used when:

• the primary purpose is to provide an open line of credit with a supplier

• prices are unknown at ordering time, or subject to change later without notice.

Blanket purchase orders

Blanket purchase orders are a method of creating a requisition against which multiple invoices will be paid. An order line is created to cover the total value of the item. Each month the actual amount received is receipted. Once the blanket order is no longer needed, if the full amount has not been used, please terminate any remaining amount.

A blanket order uses quantity rather than price to set the total amount of the purchase order. This can be used for spend with suppliers who will invoice you regularly but do not require multiple purchase orders or where the overall total amount is known but individual payments are unknown.

Receipting must be done in order to release payment.

Select procurement – purchase orders – goods receipt. Enter PO number in order number field. Add details of the payment in the external reference field; this could be the details of the product that you are paying for or the week/details of the expenses you are paying. Enter the quantity received. Select ‘cancel the rest’ to cancel the remainder, if appropriate.