Difference between Procurement Purchase orders and contracts purchase orders

KushalL
Tera Contributor

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What's the difference between the Procurement Purchase Orders and Contracts Purchase Orders.

Procurement is the plugin that am aware but like to know why two present are both are called as Purchase orders module? 

1 REPLY 1

Bhimashankar H
Mega Sage

Hi @KushalL ,

 

Because they have the same titles created in modules, on different tables.

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The main difference between these two is Proc purchase orders are general, ad-hoc PO while contract PO are specifically buying items under pre-negotiated terms.

 

Proc PO generated from purchase requisition after the sourcing is complete. You can consider as day-to-day purchasing. 

 

Contract PO - That items will be bought under a existing agreement you have with third party. These are the contracts, and they have contract model as "Purchase Order". The price of item will be automatically applied based on contracts. 

 

Eg: Buying items bulk when you have fixed-price agreement

 

Thanks,
Bhimashankar H

 

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