How to Perform a Blanket PO in NetSuite

Are you tired of manually creating purchase orders for multiple items? Do you wish there was a faster way to streamline this process? Look no further, as this article will guide you on how to perform a Blanket PO in NetSuite, saving you time and effort. Say goodbye to tedious purchase order creation and hello to more efficient purchasing practices.

What Is a Blanket PO?

A blanket purchase order (PO) is a standing agreement between a buyer and a supplier for multiple deliveries over a specified period. It simplifies the procurement process by eliminating the need to create individual orders for each delivery. Blanket POs are often utilized for recurring orders or when the exact quantity or delivery schedule is not yet determined. They offer flexibility and streamline administration. For instance, a company may establish a blanket PO with a supplier for monthly office supplies, enabling them to make multiple orders without having to create separate POs for each one.

Why Use a Blanket PO?

In the world of purchasing and procurement, Blanket Purchase Orders (POs) are becoming increasingly popular. But what exactly is a Blanket PO and why should you consider using one in your organization? In this section, we will discuss the benefits of utilizing a Blanket PO, including how it can streamline your purchasing process, save you time and effort, and ultimately provide cost savings for your business.

1. Streamlines Purchasing Process

A blanket purchase order (PO) is a great way to streamline the purchasing process by consolidating multiple purchases into a single agreement. Here are the steps to create and manage a blanket PO in NetSuite:

1. Set up blanket PO preferences.
2. Create a blanket PO.
3. Add line items.
4. Set up billing and shipping schedules.
5. Save and submit the blanket PO.

To effectively manage and track blanket POs in NetSuite:

1. View and edit blanket POs.
2. Receive and bill against blanket POs.
3. Close or cancel blanket POs.

When using blanket POs in NetSuite, it is important to follow these best practices:

1. Establish clear and specific terms.
2. Keep track of usage and expenditures.
3. Regularly review and update blanket POs.

A great historical example of how blanket POs streamline processes is the implementation of the system by the US military during World War II to manage the procurement of supplies. This allowed for efficient and centralized purchasing, greatly contributing to the war effort.

2. Saves Time and Effort

Using a blanket purchase order (PO) in NetSuite can significantly save time and effort in the purchasing process. Here are the steps to efficiently create and manage a blanket PO in NetSuite:

1. Set up blanket PO preferences to streamline the process.
2. Create a blanket PO with all necessary details.
3. Add line items to the PO, ensuring accuracy and completeness.
4. Set up clear and specific billing and shipping schedules.
5. Save and submit the blanket PO for processing.
6. View and edit blanket POs as needed.
7. Receive and bill against blanket POs for accurate tracking of usage and expenditures.
8. Close or cancel blanket POs when they are no longer needed.

To effectively utilize blanket POs in NetSuite, it is important to follow these best practices:

1. Set clear and specific terms to avoid confusion and errors.
2. Keep track of usage and expenditures to ensure budget compliance.
3. Regularly review and update blanket POs to reflect any changes or updates.

By implementing these steps and best practices, you can efficiently manage and track blanket POs, ultimately saving valuable time and effort in the purchasing process.

3. Provides Cost Savings

Using a blanket purchase order (PO) in NetSuite can result in cost savings for businesses. Here are the steps to create and manage a blanket PO in NetSuite:

1. Set up blanket PO preferences to establish default settings for future orders.
2. Create a blanket PO by entering the necessary details, such as vendor, terms, and currency.
3. Add line items to specify the products or services covered by the blanket PO.
4. Set up billing and shipping schedules to determine the intervals and quantities for invoicing and delivery.
5. Save and submit the blanket PO to initiate the purchasing process.

To manage and track blanket POs in NetSuite:

1. View and edit blanket POs to make any necessary changes.
2. Receive and bill against blanket POs as goods or services are delivered.
3. Close or cancel blanket POs once they have been fulfilled or are no longer needed.

To fully utilize the benefits of blanket POs in NetSuite:

1. Set up clear and specific terms to avoid any confusion or disputes.
2. Keep track of usage and expenditures to monitor budget and spending.
3. Regularly review and update blanket POs to ensure they align with current needs and requirements.

How to Create a Blanket PO in NetSuite?

In this section, we will discuss the step-by-step process of creating a blanket purchase order (PO) in NetSuite. This type of PO allows for multiple releases of goods or services over a specific period of time, making it an efficient option for recurring purchases. We will cover everything from setting up your preferences to finalizing and submitting the PO. So, let’s get started and learn how to create a blanket PO in NetSuite.

1. Set Up Blanket PO Preferences

To establish blanket purchase order (PO) preferences in NetSuite, follow these steps:

1. Go to the “Setup” menu and select “Company”.
2. Under “Transaction Preferences”, click on “Purchasing”.
3. Choose “Blanket Purchase Orders”.
4. Set the default fields for blanket POs, such as vendor, terms, and currency.
5. Configure specific preferences, like allowing or disallowing changes to blanket POs after they are released.
6. Save the changes to apply the blanket PO preferences.

Ensure a smooth process by adhering to these suggestions:

• Regularly review and update blanket POs to keep them accurate and relevant.
• Clearly define and communicate the terms and conditions for blanket POs.
• Maintain a record of blanket PO usage and expenditures to track and manage budgeting.

2. Create a Blanket PO

Creating a blanket purchase order (PO) in NetSuite involves a few simple steps:

1. Set up blanket PO preferences, including default values for vendors and locations.
2. Create a Blanket PO by entering the necessary information, such as vendor, currency, and terms.
3. Add line items to the PO, specifying the items, quantities, and prices.
4. Set up billing and shipping schedules, determining when and how the PO will be billed and shipped.
5. Save and submit the blanket PO for approval.

By following these steps, you can efficiently create a blanket PO in NetSuite and streamline your purchasing process.

3. Add Line Items

When creating a Blanket Purchase Order (PO) in NetSuite, adding line items is a crucial step. Here is a simplified list of steps to add line items to a Blanket PO:

1. Access the Blanket PO in NetSuite.
2. Click on the “Add Item” button to add a new line item.
3. Select the item from your inventory or enter the item details manually.
4. Specify the quantity and unit price for each line item.
5. Include any necessary additional information such as descriptions or custom fields.
6. Repeat the process for each item to be added, clicking on the “Add Item” button for each new line item.
7. Verify the accuracy of the line items and make any necessary adjustments.
8. Save the Blanket PO to finalize the addition of line items.

Following these steps will ensure that your Blanket PO in NetSuite contains all the necessary line items for your procurement needs.

4. Set Up Billing and Shipping Schedules

• Set up billing and shipping schedules in NetSuite by following these steps:
1. Open the Blanket PO in NetSuite and go to the “Billing and Shipping” section.
2. Select the desired frequency and duration for invoicing to specify the billing schedule.
3. Indicate the frequency and quantities of shipments to set up the shipping schedule.
4. Define the shipping addresses for each shipment.
5. Save the changes to the Blanket PO to finalize the billing and shipping schedules.

5. Save and Submit the Blanket PO

To successfully save and submit a Blanket Purchase Order (PO) in NetSuite, follow these steps:

1. Access NetSuite and go to the “Transactions” menu.
2. Select “Purchase Orders” and then click on “Blanket POs.”
3. Find the desired Blanket PO and click on it to open.
4. Review the details and make any necessary updates.
5. Click on the “Save” button to save the changes.
6. After saving, click on the “Submit” button to submit the Blanket PO for approval.

By following these steps, you can successfully save and submit the Blanket PO in NetSuite.

How to Manage and Track Blanket POs in NetSuite?

Blanket purchase orders (POs) are a useful tool for managing recurring purchases in NetSuite. In this section, we will discuss how to effectively manage and track blanket POs in NetSuite. We will cover the various functions and features available, such as viewing and editing blanket POs, receiving and billing against them, and closing or canceling them. By the end, you will have a thorough understanding of how to navigate and utilize blanket POs in NetSuite for efficient procurement management.

1. View and Edit Blanket POs

To view and edit blanket POs in NetSuite, follow these steps:

1. Login to your NetSuite account and go to the Purchasing menu.
2. Select Blanket Purchase Orders under Transactions.
3. Locate the desired blanket PO by using the search or filter options.
4. Click on the blanket PO to view its details.
5. To edit the PO, click on the Edit button and make the necessary changes.
6. Save the changes and update the PO.
7. To view a list of all blanket POs, return to the Blanket Purchase Orders page.
8. Use the search or filter options to narrow down the results if needed.
9. Click on the desired PO to view or edit its details.

2. Receive and Bill Against Blanket POs

Receiving and billing against blanket POs in NetSuite involves the following steps:

1. Receive items: Receive the items or services specified in the blanket PO by entering the quantity received and confirming the receipt in NetSuite.
2. Match receipts: Match the received items or services with the corresponding blanket PO to ensure accurate billing.
3. Create vendor bills: Generate vendor bills based on the received items or services and the agreed-upon pricing in the blanket PO.
4. Link bills to POs: Link the vendor bills to the blanket PO to establish a clear audit trail and maintain accurate records.
5. Submit for approval: Submit the vendor bills for approval to ensure proper authorization before processing payments.

Pro-tip: Regularly reconcile received items and vendor bills against the blanket PO to identify any discrepancies and address them promptly, ensuring accurate financial records.

3. Close or Cancel Blanket POs

To close or cancel a blanket purchase order (PO) in NetSuite, follow these steps:

1. Access the NetSuite platform and navigate to the Transactions menu.
2. Select “Purchase Orders” and locate the blanket PO you wish to close or cancel.
3. Open the blanket PO and review its details.
4. If closing, check if any remaining line items need to be received or billed before closing.
5. Click the “Close” button to mark the blanket PO as closed, indicating it is no longer active.
6. If canceling, ensure no goods or services have been received or billed against the blanket PO.
7. Click the “Cancel” button to void the blanket PO, removing it from the system.

In a similar vein, historical records show that businesses have closed or canceled blanket POs to adjust procurement strategies, manage changing demands, and maintain accurate inventory levels.

Best Practices for Using Blanket POs in NetSuite

When it comes to managing purchases and expenses in NetSuite, using a blanket PO can be a useful tool for streamlining processes and ensuring accuracy. However, to truly reap the benefits of this feature, it is important to follow best practices. In this section, we will discuss the key elements of setting up a blanket PO, keeping track of its usage and expenditures, and regularly reviewing and updating it. By following these guidelines, you can maximize the efficiency and effectiveness of your blanket POs in NetSuite.

1. Set Up Clear and Specific Terms

To establish precise and detailed terms for a Blanket PO in NetSuite, follow these steps:

1. Define the scope of the agreement: Clearly outline the goods or services that will be covered by the Blanket PO.
2. Specify pricing and payment terms: Clearly state the agreed-upon prices for each item or service and the payment terms, such as due dates or installment schedules.
3. Include delivery details: Specify the expected delivery dates, shipping methods, and any special instructions or requirements.
4. Outline quality standards: Clearly state the quality standards that the goods or services must meet, including any specific certifications or specifications.
5. Include terms and conditions: Include any additional terms and conditions that are relevant to the agreement, such as warranties, liability limits, or dispute resolution procedures.

2. Keep Track of Usage and Expenditures

Keeping track of usage and expenditures is crucial when utilizing a Blanket Purchase Order (PO) in NetSuite. Here are some steps to help you effectively manage your Blanket POs:

1. Regularly update the usage and expenditure information for each Blanket PO.
2. Monitor the quantity of items purchased against the agreed-upon amount to prevent over or underutilization.
3. Track and review the expenditures associated with each Blanket PO to ensure they align with the budget.
4. Generate reports to analyze usage patterns and identify any discrepancies or areas for improvement.
5. Communicate with suppliers to ensure accurate billing and promptly resolve any billing discrepancies.

Pro-tip: Utilize automated reporting and reconciliation features in NetSuite to streamline the process and improve accuracy in tracking usage and expenditures.

3. Regularly Review and Update Blanket POs

Regularly reviewing and updating blanket purchase orders (POs) is crucial for maintaining accuracy and efficiency in procurement processes. Follow these steps to ensure your blanket POs are up to date and aligned with your current needs and budget constraints:

1. Set a schedule: Establish a regular timeline for reviewing and updating blanket POs, such as monthly or quarterly.
2. Review usage and expenditures: Analyze the usage of the blanket POs to ensure they align with your current needs and budget constraints.
3. Update quantities and pricing: Adjust quantities and pricing based on actual usage and any changes in supplier costs or discounts.
4. Check terms and conditions: Verify that the terms and conditions of the blanket POs are still relevant and up to date.
5. Communicate with suppliers: Reach out to suppliers to discuss any necessary modifications or renegotiations.
6. Document changes: Keep a record of any changes made to the blanket POs for future reference.