The document explains the different types of purchase orders available in Oracle Purchasing: standard purchase orders (SPO), planned purchase orders (PPO), blanket purchase agreements (BPA), and contract purchase agreements (CPA). It details each type's characteristics, including when to use them, their terms and conditions, and how they may involve encumbrance accounting. It also compares the differences between these purchase order types based on various criteria.

1. Oracle Purchasing – Purchase Order Types & Difference between Standard &
Planned PO, Blanket & Contract Agreements
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Oracle Purchasing – Purchase Order Types:
Oracle Purchasing provides the following purchase order types:
• Standard Purchase Order (SPO)
• Planned Purchase Order (PPO)
• Blanket Purchase Agreement (BPA)
• Contract Purchase Agreement (CPA)
Based on the Document Name field chosen in the Document Types, the window change the names
of these documents. For example, if you enter Regular Purchase Order in the Document Name field
for the Standard Purchase Order type, your choices in the Type field in the Purchase Orders window
will be Regular Purchase Order, Planned Purchase Order, Blanket Purchase Agreement, and Contract
Purchase Agreement.
Standard Purchase Orders (SPO):
General standard purchase orders for one-time purchase of various items. Standard purchase orders
can be created when the details of the goods or services you require, estimated costs, quantities,
delivery schedules, and accounting distributions are known. If the encumbrance accounting is used,
the purchase order may be encumbered since the required information is known.
Planned Purchase Orders (PPO):
Planned purchase order is a long-term agreement committing to buy items or services from a single
source. Tentative delivery schedules and all details for goods or services to buy, including charge
account, quantities, and estimated cost are to be specified.
Blanket Purchase Agreements (BPA):
Blanket purchase agreements is used when the detail of the goods or services planned to buy from a
specific supplier in a period is known, but the detail of your delivery schedules is unknown. Blanket
purchase agreements is used to specify negotiated prices for the items before actually purchasing
them.
Contract Purchase Agreements (CPA):
Contract purchase agreements is used with the suppliers to agree on specific terms and conditions
without indicating the goods and services that will be purchased. Later on the standard purchase
orders can be issued referencing the contracts, and encumber can be done for these purchase
orders if encumbrance accounting is used.

2. Difference between Standard & Planned PO, Blanket & Contract Agreements:
Criteria SPO PPO BPA CBA
Terms & Conditions Known Yes Yes Yes Yes
Goods or Services Known Yes Yes Yes No
Pricing Known Yes Yes Maybe No
Quantity Known Yes Yes No No
Account Distributions Known Yes Yes No No
Delivery Schedule Known Yes Maybe No No
Can be Encumbered Yes Yes No No
Can be Encumber Releases N/A Yes Yes N/A
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