A blanket order is a long-term agreement between a company and its customer or supplier.
You can also name this: Frame contracts
A “Blanket Sales Orders” is a contract with a customer who agrees to purchase a large quantity of product and requests partial delivery over a period. The customer can have regular delivery or via calls for delivery.
The price of the products is negotiated during the contract but it is possible to revise the price during the calls according to the agreements concluded with the customer (exchange value of the currency greater than x%, increase in transport costs by x% …)
With a “Blanket Sales Orders” it is possible to track the quantities remaining to be delivered without impacting the available stock. The impact in inventory will only be visible when lauching a sale after customer call.
A “Blanket Purchases Orders” is a contract with a supplier with whom we have an agreement to order a large quantity of product and request partial delivery over a given period. We may request regular delivery or via delivery calls.
The Price is fixed during the contract but can be modified as in the case of “Blanket Sales Orders”
With a “Blanket Purchases Orders” it is possible to follow the quantity to be taken from our supplier without having any impact in the planning of stocks. The impact in inventory will only be visible when lauching a purchase after your call to the supplier.
The purchase or sale created from a “Blanket Orders” must have information indicating to the customer or the supplier that it is not a new order but a call on the contract.
10/15/2021 - update following discussion
Two different model : sale and purchase.
This is mainly because they will be managed by two different kind of users so the access right must be different.
A “Blanket Orders” Sale or Purchase must have :
- Blanket Order Number : A unique number with a sequence
- From Date
- To Date
Type : Selling or Purchasing
- Description : Internal information to describe the “Blanket Orders”
Terms and ConditionsNotes : To allow the addition of clauses to the contract with the customer / supplier.
- Unit Price
The possible states:
The “blanked number id” is created on draft state.
Via the “Blanket Orders”, it must be possible to create a purchase or a sale using part of the quantity remaining to be delivered / ordered.
During this creation, it must be possible to select the products that will be included in the sale / purchase.
A “Wizard” is used to launch the creation of a sale or a purchase with all the product lines with a remaining quantity> 0. The lines will be created with the totality of the remaining quantity. The user will be able to delete lines or adapt the quantity directly in the sale or purchase.
It should be possible to create a sales or purchase document normally and link the line with a blanket order line. During this connection, the unit price should be adjusted.
The purchase or sale lines created must have a link with the original “Blanket Orders” lines (origin)
For the monitoring of quantities, we must be able to identify this information on the product’s line:
- The contract quantity
- The quantity processed : already delivered / received *
- The quantity remaining : to be delivered / received = Contract Quantity - Quantity processed.
- The list of Sales Lines / Purchase line related to this Blanket Orders product’s line.
*) the processed quantity must be recalculated during the processing of the linked sale / purchase to calculate with the modified quantity, but also during shipping or receiving to use the quantity actually shipped / received. Blanket Orders "
The relate on “Blanket Orders” :
- Invoice relating to the “Blanket Orders”
- Sales / Purchases relating to the “Blanket Orders”
- Shipment int/Shipment Out relating to the “Blanket Orders”
This module must be generic and provide a first part of the response to the management of “blanket orders”. The notion of automatic launch based on a calendar should be part of a second phase with an optional addition.
- Check for the credit limit.
- Check when closing the “Blanket Orders” if it was not fully consume.
- Delivery Schedule