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Re: Framework purchase order

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Hi,

 

Purchasing document used for the procurement of  materials or external services. Instead of stipulating a specific delivery date,  this type of purchase order has an extended validity period. Goods or services  can be supplied or performed against it over this period without the need for any further written instruction to be issued by the buying entity. Framework orders are defined with document type FO. They are used in accelerated procurement processes in connection with preventive maintenance (servicing) plans or invoicing plans, and for blanket purchase orders (purchase orders with specified limits).A framework order covers multiple procurement transactions over a longer period in cases where the administrative costs of processing discrete POs would be disproportionately high.

 

Thanx

Khan


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