Planned Purchase Order.

What is planned purchase order,when do we use it?

Questions by chandrashena

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Planned PO is a type of purchase order where details of good are known and specific supplier, delivery is planned. A shipment release is entered against planned PO.

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Planned purchase order is an agreement cum order where in we know the items, quantity, price and terms to purchase from the supplier but we still do not know the delivery schedules. For example for any construction we select the supplier for the items we need and set up in the system. Later we send the Planned release document to the supplier with the delivery schedules. PRD will be sent against Planned purchase order.

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  • Jul 1st, 2017

It is a long term agreement when you know the goods or services then you can raise PPO. whenever you make PPO you need to raise schedule releases against planned PO

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