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Framework Orders for Goods

Former Member
0 Kudos

Hi !

Framework orders continue to confuse me.

Question1:

I think I understand how Framework Order work with Item Categories B and D.

However, I cannot think of a scenario when a FO can be used for materials (item category = space, with or without account assignment i.e. inventorized or expensed).

If someone can give some examples, that would be great.

Question2:

Item Categories B and D can be used with a regular NB PO. So, it appears that the only thing a FO provides, that a regular NB PO does not provide, is a validity date range. Everything else that a FO can do, a NB can do too. Am I missing something?

Question3:

Is there something different in SAP called the 'Blanket Order', or is a 'Blanket Order' simply another word for a Framework Order?

Thanks for all your help!

Regards,

Anisha.

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

Hi

1. Frame work Order FO needs account assignment so it cannot be used for inventorized material.

Yes it can be used for consumables wherein u think that releasing a PO every time might be costly compared to utility of the product for e.g for office stationary loe pens,staplers etc - no need to issue PO every month , u can issue a FO for one complete year.

2. An FO provides a validity period as well as no GR is possible. U directly enter invoices . System checks that invoice date and value should fall within the allowed space

3. FO and blanket purchase order are same

another advantage is that u can use accnt assnmnt cat U during making of an FO and can enter multiple accnt assnnts at invoicing

Edited by: rajat kaushik on Mar 7, 2009 7:27 AM

Answers (1)

Answers (1)

raghavendra_praveen
Active Contributor
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Hi

FO can be used mainly for service (say intangible) or any other procurement which extends for a definite period. It doesnt require goods receipt as vendor sends periodic invoices for payment. If you are procuring material for stock then better to use standard PO (no need to specify value range for procurement in that case).

You can use item categores B & D with standard purchase order as settings will allow you to use but one thing is standard PO requires goods receipt apart from not having additional data tab. Blanket purchase order is nothing but a FO.

Thanks

Edited by: Praveen Raghavendra on Mar 7, 2009 6:55 AM