Purchase order

Once a buyer and a seller have finalized their negotiations through the RFP phase and/or offer phase, a purchasing contract has been create.

in the so called offer phase a legally binding contract is created between them. From such a contract one or multiple pairs of procurement orders and customer orders can be spawned. The procurement order is the business object on the customer side, the customer order is the business object on the vendor side. They are bound together through the b-op network, if both participants have their b-op digitals and they share enough trust.

If there is not an existing contract that governs the relationship between buyer and seller, the procurement order can be used in place of a contract. This offers legal protection for both buyer and seller. Each purchase order is assigned it’s own unique number, known as the procurement order number.

Structuring the procurement orders, there are various types of purchase contracts, the most common are standard purchase contract and blanket purchase contract.

Related Articles

• Request for Proposal (RFP)
• Proposal phase
• Procure-To-Pay
• Purchasing contract
• Dev:Procurement Order - Developer information page