A blanket order in Microsoft Dynamics 365 Business Central represents an agreed total quantity or value with a supplier or customer, intended to be fulfilled through smaller individual shipments released over an agreed period, rather than delivered all at once. Blanket purchase orders are used for longer-term supply agreements with vendors, while blanket sales orders support customers who commit to a total quantity delivered in instalments.
How blanket orders work in Business Central
A blanket order captures the total agreed quantity, often with pricing locked in for the agreement period. Individual purchase orders or sales order shipments are then created from the blanket order as actual deliveries are needed, drawing down against the total agreed quantity until it is fully released. This provides the commercial certainty of a longer-term agreement while retaining the flexibility to schedule actual deliveries against real demand.
Blanket orders in practice
- A manufacturer agrees an annual blanket purchase order with a key raw material supplier, locking in price and supply for the year while releasing actual deliveries monthly based on production needs.
- A distributor sets up a blanket sales order for a major customer who has committed to an annual purchase volume, releasing individual shipments against it as the customer places call-off orders.
- A procurement team uses blanket orders to secure better pricing through committing to higher annual volumes, while avoiding the cash flow impact of taking full delivery upfront.
- A business tracks the remaining undelivered quantity on an active blanket order to manage the relationship and plan upcoming releases with the supplier.
How Advantage configures blanket orders
Advantage sets up blanket order functionality during Business Central implementation for businesses with longer-term supply agreements, supporting both procurement and sales scenarios where commitments are fulfilled through scheduled releases.
Frequently Asked Questions
What is the difference between a blanket order and a standard purchase order?
A standard purchase order represents a single, complete commitment to buy a specific quantity for delivery at one time. A blanket order represents an agreed total quantity or value with a supplier or customer, released in smaller individual shipments over time, supporting longer-term supply agreements.
Can a blanket sales order be used for repeat customer orders?
Yes. A blanket sales order is commonly used where a customer agrees to purchase a set quantity over a period, with actual deliveries released against the blanket order as needed, rather than the customer raising entirely new orders each time.
Does a blanket order lock in pricing for the full agreement period?
Typically, yes. Blanket orders are often used specifically to lock in agreed pricing for the duration of the agreement, protecting both parties from price fluctuations during the term, though this depends on how the specific agreement is structured.
