Lapasar
Purchasing & Procure-to-Pay

Planned Purchase Order

A planned purchase order is a long-term agreement to buy goods with tentative quantities and delivery dates that are firmed up later through scheduled releases.

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A planned purchase order sets out items, estimated quantities, prices and a provisional delivery schedule for a future period. Unlike a blanket order, it includes tentative delivery timing that the buyer confirms over time by issuing releases against the plan. This gives suppliers advance visibility of demand while letting buyers adjust exact quantities and dates as needs become clearer.

Planned purchase orders suit environments with forecastable but variable demand, such as production materials or seasonal replenishment. They support better supplier capacity planning and smoother deliveries, because the supplier can prepare against the plan. Each release then becomes a firm commitment, keeping commitments and accruals accurate as the schedule unfolds.

Frequently asked questions

What is a planned purchase order?
A planned purchase order is a long-term buying agreement with tentative quantities and delivery dates that are firmed up over time through scheduled releases against the plan.
How does a planned purchase order differ from a blanket purchase order?
A blanket order fixes terms without a delivery schedule and is drawn down by call-offs, while a planned purchase order includes a provisional delivery schedule that is confirmed through releases.

Explore related across the knowledge graph

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