Using the requisition functions, departments can request supplies from central supply or purchasing. Requisitions are filled from existing inventory and when a requisition cannot be filled, it can be used to create purchase orders. POs specify the material and services to be provided, as well as costs and payment terms. Each order is assigned a unique PO number which is referenced on invoices received from the vendor. Once the standing order's time period has elapsed, it is no longer valid.
Pricing is supplied by the vendor.
Blanket orders are commonly used when the vendor is under contract to provide the goods. Previously issued purchase orders can be retrieved to create reorders. Purchase Order Updating. The Bill of Lading should be entered and matched against the purchase orders to determine if the items were ordered, and that the items received are recorded in the system. When all items on a purchase order are received, the order is flagged as complete and inventory is updated.