A Blanket Order is a different name for a Call-Off order or Blanket Purchase Agreement. Microsoft Dynamics 365 Business Central uses the term Blanket Sales Order. This article describes the practical use of it.
A Blanket Sales Order represents a framework contract for a sales agreement between the company and a customer. Typically, it involves one item with multiple shipments at predetermined quantities, price(s), and delivery dates.
The order processor creates a blanket sales order when the customer commits to purchase one item in a large quantity that will be delivered in several shipments over time. Each shipment can be set up as an order line. This can then be converted to a sales order at the time of shipping.
Quantities on a blanket sales order do not affect item availability, but can be used as part of the forecasting and planning process.
You can define the order lines in two ways:
- The order line contains the total quantity of an item to be delivered. When the customer calls off, the quantity to be sent at that time is filled in with the delivery date. When an order is subsequently created, the delivery date is included as well as the quantity to be sent. The remainder remains intact on the Blanket Sales Order.
- An order line is created per agreed partial shipment. Here, the quantity and delivery date are entered per line. When the customer makes calls off inventory, the quantity to be sent is entered per line and converted to an order.
How-to Use a Blanket Order
Example 1: withcustomer Trey Research it agreed that in 2019 a total of 1.200 lamps will be delivered. The intention is that 100 lamps will be taken monthly on the first day of the month.
For each delivery an order line is created for the delivery of 100 lamps with delivery dates 1-1-15, 1-2-15, 1-3-15 etc. Each month an order is created for the partial delivery from the Blanket Sales Order for the shipment in question. .
Example 2: with client Adatum Corporation an agreement has been made about the purchase of a number of items. 1200 pieces of lamps AMSTERDAM, 600 pieces of visitors ‘chair PARIS and 250 visitors’ chair BERLIN. The customer can call them off when he needs them.
- An order line is created per article to be delivered
- If the customer makes a call-off, the quantity to be sent per order line is filled in with the delivery date requested by the customer
- When an order is made, the quantity to be sent is taken over on the oder.
When an salesorder is created from a Blanket Sales Order, a link remains. The sent and invoiced quantity is displayed on the order lines of the
Blanket Sales Order . It is also possible to approach the linked order or booked invoice from the Blanket Sales Order.
This also applies to:
- Unposted Orders, Invoices, Return Orders, Credit Memos
- Posted Shipments, Invoices, Return Receipts, Credit Memos
- Related Attachments
- Assembly Orders
Order planning and Forecasting
The item quantities on a Blanket Sales Order have no influence on the article availability, but can be used as part of the forecasting and order planning.
The Blanket Sales Order reflects an intention of what the customer is going to buy over a certain period is also intended to reduce the uncertainty about the general forecast. The Blanket Sales Order is therefore a customer-specific forecast on top of the unspecified forecast as shown in the image below.
For more information, read the Technical Whitepaper about Supply Planning in Microsoft Dynamics NAV 2013.
As with the (unspecified) forecasts, actual sales should consume the expected demand, and the remaining quantity should fill the demand. So again, the consumption does not reduce the item quantity on the Blanket Sales Order. The planning calculation takes open sales orders linked to the specific order lines of the Blanket Sales Order
into account, but it does not take into account a period (like monthly demand orso). Nor are booked orders taken into account, because the outstanding quantity has already been deducted from the Blanket Sales Order.
Remarks
- A Blanket Sales Order is a document in which agreements can be made with the customer regarding iten quantities and deliveries over a period of time
- The salesperson who manages the Blanket Sales Order must periodically create the Sales Orders himself. Only when the order is created will it become part of the logistics process of Dynamics NAV / Business Central.
- By default it is not possible in Dynamics NAV to create Sales Orders by batch functionality based on delivery data automatically over multiple Blanket Sales Orders
- When the customer calls off for inventory, at that time the Sales Order is made. From that moment on delivery times and reservations take effect.
- So when there is an agreement with the customer that he can call off inventory at any time and will be delivered immediately, the Blanket Sales Order may not be the solution in this case. Then it is better to work with a normal Sales Order and stock on which partial deliveries take place.
Sources:
- http://documents.manchester.ac.uk/display.aspx?DocID=8182
- https://www.digitalpurchaseorder.com/blanket-orders/
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