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IBM Confidential Blanket Purchase Agreements Blanket purchase agreements and releases allow you to negotiate a stable, long-term contract while maintaining flexible delivery schedules and order quantity commitments. 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 blanket purchase agreements to specify negotiated prices for your items before actually purchasing them. A blanket purchase agreement is a type of purchase order you issue before you request actual delivery of goods or services. You normally create a blanket purchase agreement to document a long-term supplier agreement. A blanket purchase agreement must contain an effective date and an expiration date. A blanket purchase agreement release is an actual order of goods or services you issue against a blanket purchase agreement. The blanket purchase agreement determines the characteristics and the prices of the items. The release specifies the actual quantities and dates ordered for the items. You identify a release by the combination of blanket purchase agreement number and release number. IBM Confidential Planned Purchase Orders You create a planned purchase order when you what to establish a long term agreement with a single source supplier with a commitment to buy goods or services. Planned purchase orders include tentative delivery schedules and accounting distributions. You then create scheduled releases against the planned purchase order to actually order the goods or services. A planned purchase order is a type of purchase order you issue before you order actual delivery of goods and services for specific dates and locations. You normally enter a planned purchase order to specify goods you want to order and tentatively schedule delivery of the goods. You later enter a shipment release against the planned purchase order when you act
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