1 Reply Latest reply on Nov 19, 2014 5:57 AM by PranitSaha

    Variable Rate Purchase Orders

    Steve Mac

      Hello,

       

      What would be the best way to create and manage a blanket purchase order for a year where the final spend is not known at time of requisition creation?

       

      For example, we utilize Supplier A for research services and every month the invoice amount varies. We want to utilize the PO for tracking the spend but do not want to have to constantly update if the total PO amount is exceeded based on the total of invoices to date.

       

      The best scenario I've been able to come-up with is to aggregate several previous years worth of spend with Supplier A to create an average dollar amount and apply either a percentage increase or decrease to that number. We would then create the requisition and once fully approved, we would turn off the communication during PO creation and instead give Supplier A the PO number in an e-mail notifying them to place this PO number on all invoices for the year.