Oracle Fusion Procurement

What’s the difference between a Purchase Order, a Blanket Agreement, and a Contract Agreement?

Today we will discuss 3 types of Purchasing Documents created in Oracle Fusion Procurement and why do we need to create different types of Purchasing Documents in Oracle Fusion Procurement.

• Contract Purchase Agreement
• Blanket Purchase Agreement
• Purchase Order

Contract Purchase Agreement

You create a contract purchase agreement with your supplier to agree on specific terms and conditions without indicating the goods and services that you will be purchasing. You can later issue purchase orders referencing your contracts using terms negotiated on a contract purchase agreement by a procurement business unit which can then be made available to multiple requisitioning business units.

This is how the Contract Purchase Agreement appears in the application without any lines.

As you can see above, no line details have been specified in the Contract Agreement. This is an agreement between the supplier and the business when the business is aware of the total amount of price to be purchased from this supplier but is unaware of which goods or services are going to be purchased. When a Business Unit is defined on Contract Purchase Agreement Controls, then the Purchase Order can be linked to this Agreement within that Business Unit.

Users can set up Approval Rule for Contract Purchase Agreement and after the Agreement is approved, it can be used as a reference in Purchase Order.

Blanket Purchase Agreement

You create blanket purchase agreements when you know the details of the goods or services you plan to buy from a specific supplier in a period, but you do not yet know the detail of your delivery schedules. You can use…