Hi Uma,
A quick standard definition of contract purchase order is as follows:
<font color="red"><b>You create contract purchase agreements with your suppliers to agree
on specific terms and conditions without indicating the goods and
services that you will be purchasing. You can later issue standard
purchase orders referencing your contracts, and you can encumber
these purchase orders if you use encumbrance accounting.</b></font id="red">
Steps to Create a Contract PO:
1. (N) Purchasing Super User-->Purchase Orders-->Purchase Orders
In the above window select the po type as 'Contract'.
Then enter the supplier details and amount agreed.
Let us assume the supplier you have entered here is 'A'.
2. Approve the created PO.
3. For the PO created in step 1 we need to create a standard po.
Its same like when you create a Blanket PO you will create Releases against it.
In the same fashion you need to create a standard po ( which acts as a release) against a contract PO.
4. (N) Purchasing Super User -->Purchase Orders-->Purchase Orders.
Select the type as Standard PO.
Enter the same supplier i.e., 'A'.
Then enter all the details like Item quantity etc.
Then go to 'Reference Documents' tab and select the respective PO number of your contract PO.
This how your standard PO will be applied against the contract PO which you have created earlier.
Hope now it is clear for you.
<font color="blue"><b>Regards,
Arun Reddy,
Oracle Apps Techno Functional Consultant,
Mashreq Bank,
Dubai.
mail id:
arunapps@gmail.com
Mobile:+971-50-9590966</b></font id="blue">