Does Epicor actually have the ability to generate Blanket PO’s?
Example:
Phone Service, estimate of say $48,000 per year billed monthly. However each invoice is for different amount. Typically in other ERP systems this would be a Blanket PO with Qty of 12. When invoice comes in the price would be adjusted to meet the invoice price and QTY received. Then amount would be deducted from the total $ amount of PO. Can Epicor do this in some module other than Contracts?
My experience with Manufacturers is that most do not create POs for regularly billed items such as utility bills, insurance, mortgages, etc. I think the reason is that they are processed under more of a long term contract that is not re-negotiated every year (quarter, month, or other period).
One problem with a PO is that once you have a PO, you must also “receive” the goods purchased, and then invoice the amount received. But in the case of utilities, there is no official “receipt”…
I did a quick search on the internet, and found ONE (yes, only one) document from a city in Wisconsin (name withheld to protect the innocent/guilty) that described what should and should not be on a PO… From what I see, this aligns very well with the experiences I have seen in manufacturing (except for the “< $1000” and the “Tobacco products” limitation).
But as with any advice here… you should follow the advice from your management/CPA/Lawyers if it is different than received here.
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In our case, our need for blanket orders aren’t related to utilities, rent, etc.
Often we have services like snow removal or mowing where there’s a set fee per push or mow but the service is unpredictable. You only pay for a snow push when it snows and mow when the grass is long.
The other situation is when we contract for labor. There are three rates (normal, overtime, and double) and you never know how many hours of each you’ll get. We write the PO for a bucket of dollars and consume them as we go.
In both of these cases, we do want to “receive” the services as proof of the work.
It would be nice if there was a way to do these releases easily in Epicor.
Mark W.
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Although I appreciate your reply you did not answer the question about whether Epicor has the ability to do Blanket PO’s or not. I have been manufacturing my entire career. In Purchasing/Procurement/Supply Chain for my entire career. I have experience in now 9 different ERP systems. Epicor is the first I have seen that does not have Blanket PO capability. Unless I am mistaken.
Does anyone know if this is not the case? Please advise.
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I am not sure what you are expecting Epicor to do with a “Blanket PO” but we use what we call "Blanket POs " here. Basically it is a PO that purchasing keeps using all year and closed at end of year. They open a new one yearly. Many times they will have lines and releases on the PO for the months out or the full year. I don’t think the system automatically generates them. At least not from what I have seen.
Hope this helps.
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I am expecting to write a PO to a supplier for a $ amount and make releases and receipts based upon dollars instead of just quantities. It would be easy if have a set payment amount per month. Like $275 per month for 12 months. PO written for $3300 with 12 releases and receipts for $275 each. However for PO’s that do not have a set amount Epicor makes it difficult. Again unless I am missing something?
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This is what we would like to see too. I am used to seeing a blanket PO that outlines product/services to be provided limited by a total dollar amount (either by line or order) and limited to a date range, i.e. not to exceed ### in value and not after a certain date.
The Purchase Contract module almost gets there but it doesn’t have a frequency code for “On Demand.”
I don’t think it would be a terribly difficult customization though: add UD fields to POHeader and PODetail to hold the not to exceed amounts. Purchasing would add a release, it would add up the total of the releases and ensures it doesn’t exceed the limit of dollar or date.
But like @Tclaypool, Epicor is the first ERP system I’ve worked on that didn’t have this capability - even FORTRAN-based MANMAN had this in the 80s. So it is a bit surprising to not have it.
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Thank you! I am glad someone else gets it. To me it should be a basic feature in an ERP Purchasing Module.
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I think that one challenge here is that we dont have a CHECKBOX to specify that this is a “Blanket” PO… but it is possible to create an unscheduled PO that acts as a blanket.
Example:
- if you put a line on a PO, you can specify a blanket quantity, for a PART, but not provide any date. Then you can receive against this line over and over again… UNTIL you reach the total quantity, at which point, the PO will automatically close.
- Do the same as above, but put a date on the line
- instead of a regular PO, create a “Contract PO”, which has both a start and end date… then add items as suggested above.
- you can create a line for a non-inventory item, assign a GL to that line, and make the unit value $1 each, and the quantity is the total value. (IE… if this is a $15,000, purchase Qty 15,000 at $1 each)… then as the value is received, receive the quantity. Again, once you reach the full quantity, the PO will automatically close.
Those are just some of the ways I have seen this done.
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I thought in order to use the Contract PO feature you first had to setup the part. Then link it too a contract. Is this correct?
But also. I cannot send a supplier a PO for $ as Qty. This will be confusing to them and I am sure they will push back.
I know this an older conversation but I was asked about blanket POs today.
You wrote…
I think that one challenge here is that we dont have a CHECKBOX to specify that this is a “Blanket” PO… but it is possible to create an unscheduled PO that acts as a blanket.
Example:
1. if you put a line on a PO, you can specify a blanket quantity, for a PART, but not provide any date. Then you can receive against this line over and over again… UNTIL you reach the total quantity, at which point, the PO will automatically close.
2. Do the same as above, but put a date on the line
3. instead of a regular PO, create a “Contract PO”, which has both a start and end date… then add items as suggested above.
4. you can create a line for a non-inventory item, assign a GL to that line, and make the unit value $1 each, and the quantity is the total value. (IE… if this is a $15,000, purchase Qty 15,000 at $1 each)… then as the value is received, receive the quantity. Again, once you reach the full quantity, the PO will automatically close.
Those are just some of the ways I have seen this done.
So for bullet point 1 don’t you need a release to receive it in? When and how is the release be generated?
thanks Kim
Please share your comments and ideas on this topic at Epicor ERP Ideas:
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Blanket PO - How to do it in E10
There is a company setting that allows the user to change the price as they receipt a PO - turn this on
Create a PO for the anticipated quantity/value (Qty - 12, £4000 each)
Create a Release for each month with a quantity of 1 (so 12 releases)
Receipt a Release and enter the quantity (1) and the price charged (£3600)
Enter the AP Invoice against the receipt - the quantity and price will come over from the receipt
The release is closed as received
Does that meet your needs?
Hi Sue,
I guess my point in other thread about things I enjoy in every other ERP system I’ve used but not in Epicor is a formal blanket purchase order. Can we twist our way or customize to gain this behavior? Sure. But wouldn’t it be nice if we could:
- Declare a PO as a blanket (as Tim noted above)
- Have a maximum line or total value
- Have an expiration date
- Works for inventory/job lines
- Works for subcontracting (negotiate a rate and do a release for each job - how cool would that be?)
- Works for other services like professional services (legal/consulting/landscaping)
- Creates a PO Document that clearly conveys to the supplier the blanket agreement
- EASILY make releases on lines that keeps track of quantity/amounts remaining on the PO. Maybe allow releases on PO suggestions!
- Is included in base functionality - like every other ERP system.
Blanket POs are a box not checked in an ERP search comparison and I’m not sure why. 
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We need this desperately!!
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I am investigating the Purchase Kanban in Epicor 10 now. There is a way to set the “blanket” parts you want to be released on a parent PO as required by the perimeters you set on the part. I am still in the early stages of and have not been able to complete the process from beginning to end. Does Epicor 10 have a Purchase Kanban tutorial available (or anyone out there)? Thanks