Manage blanket purchase orders
A blanket purchase order represents a framework for a long-term agreement between you and your vendor. Similarly, you use blanket sales orders to manage long-term agreements between you and your customer.
A blanket order is typically made when you commit to purchasing large quantities that are to be delivered in several smaller shipments over a certain period of time. Often blanket orders cover only one item with predetermined delivery dates. The main reason for using a blanket order rather than a purchase order is that quantities entered on a blanket order don't affect item availability and thus can be used as a worksheet for monitoring, forecasting, and planning purposes.
On the blanket order, each separate shipment can be set up as an order line, which can then be converted into a purchase order at the time of shipping.
An example of when a blanket sales order could be used is if a customer calls and places an order of 1000 units of an item and they want the items to be delivered in 250 units every week over the next month.
Blanket sales orders work in a similar way as blanket purchase orders.