How to handle "Recurring" Purchase Orders? e.g., vendor agreements

Question

How are companies handling the scenario in which there are recurring Purchase Orders such as vendor agreements?

Example - service agreement with the vendor to perform $1,000 of maintenance service each month.

My thought is that this is handled through Blanket POs, but looking for input from others! Here’s what I did.

created blanket PO with 1 line item but qty. of 3 (representing 3 months)
- also set expiration (3 months in this case)
create new PO - normal type
- added PO line item from blanket PO - adjusted qty. to 1
  - remove hold/approve (Normal “child” PO = Open)
Blanket PO = Open (because there is still open qty. of 2)
- Qty. on receipts = 1

Are there any other ideas or methods? What are others doing?

Kandy Beatty · Accepted Answer

Hi @sean21This would be the best route if they truly need the PO route. Other than that, there is recurring bills but that would not be the route for materials.

CereseCarlstrom90 · Answer

Hi @sean21,We have a lot of vendor service agreements that we’re trying to handle with recurring PO’s and we decided to add a custom field to the PO form. “PO Recurrence” has a drop down box with choices like monthly, annually, semi-annual, etc and then we use a GI with business events and dashboards for notifications. We’re in the early stages but it’s working well so far.

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