SOP-PURCH-10: Recurring and Blanket Purchase Orders

Number: SOP-PURCH-10

Subject: Recurring and Blanket Purchase Orders

Summary: Describes when recurring and blanket purchase orders are appropriate to use.

Source: University Procurement Services

Date of Issue: 05/16/2019

Date of Revision: 05/07/2025

Procedure

Choose the right order type

Recurring payment order

Recurring payment orders are appropriate in the following situations:

1. The order consists of multiple lines, each of which must be funded by a unique account or classified with unique object codes.
2. The order involves partial quantities.
3. The amount that can be spent is known but the exact quantity is not.
4. The order consists of products or services ordered “as needed” over the course of an agreement.

Common examples of recurring payment orders include lease/rental payments, utility payments, and service contracts with multiple payments.

Blanket purchase order

A blanket purchase order, or BPO, is a type of recurring payment order. BPOs are appropriate in the following situations:

1. The order consists of one line.
2. The amount that can be spent is known but the exact quantity is not.
3. The order consists of products or services ordered “as needed” over the course of a fiscal year.

BPOs are used for high volume and/or small dollar purchases from a contracted supplier. For example, establishing a PO for a fiscal year to order food for a dining hall.

Visit the Non-Catalog Documentation Library for step-by-step instructions on completing either of these order types in BUY.IU.

Approved exceptions

Purchasing has approved the use of recurring or BPOs in additional situations and for specific suppliers, such as Airgas and Linde. Follow the guidance provided by Purchasing in these situations and contact them via the Support Form with questions. On the Support Form select:

1. I currently work with Indiana University: in a department
2. I need help with: Requisitions
3. Choose a topic: Something else.

Monitor PO line funding

Departments are responsible for monitoring the PO Line balance on recurring payment orders and ensuring funds are added as needed before invoices are received. Funds are added via a change request document in BUY.IU.

Once the funds on a PO line are completely used that PO line enters Fully Invoiced status. Fully Invoiced PO lines cannot be amended with a change request. In these situations, a new PO must be created to pay additional invoices. This could result in delayed supplier payments or service interruptions due to late payment.

Use the BUY.IU PO Encumbrance Detail Report to retrieve a list of open POs and the funds available on each. Visit the Change Request Documentation Library for step-by-step instructions on how to complete a change request document.

Definitions

Blanket Purchase Order (BPO):

A type of recurring payment order that establishes an amount of funds to make purchases as needed over the course of a fiscal year.

Partial quantity order:

An order where a quantity of goods or services is being ordered in partial amounts. For example, a supplier will provide 10.5 hours of translation services. BUY.IU does not accept decimal quantities on requisitions or invoices so these types of orders must be entered as recurring orders instead of quantity orders.

Recurring Payment Order:

A purchase order (PO) that is valid for a defined period, usually the start and end date of an agreement, and establishes an amount of funds to make payments over the course of the agreement.