A Blanket Purchase Agreement (BPA) is a contract between a customer and a supplier that establishes the terms and conditions for the supply of goods or services over a period of time. This type of agreement is especially useful when a customer has recurring needs for a specific product or service, as it allows them to pre-negotiate the terms of their purchases in advance.

In Oracle R12, the process of creating a Blanket Purchase Agreement is streamlined, making it easier for businesses to manage their procurement needs. Here`s a closer look at how the process works:

1. Create the Blanket Purchase Agreement

To create a BPA in R12, go to the Purchasing Super User responsibility and select “Blanket Purchase Agreements” from the “Setup” menu. From there, you can create a new BPA by entering the supplier information, item details, pricing information, and other relevant details.

2. Approve the BPA

Once you`ve created the BPA, you`ll need to submit it for approval. Depending on your organization`s approval workflow, the BPA may need to be routed to several different approvers before it can be finalized.

3. Release Blanket Purchase Order

Once the BPA is approved, you can use it to create Blanket Purchase Orders (BPOs) for specific orders. To create a BPO, go to the “Purchase Orders” responsibility, select “Blanket Purchase Orders,” and create a new order. You can then select the appropriate BPA and enter the details of the specific order.

4. Invoice against the BPA

When the supplier delivers the goods or services, you can create an invoice against the BPA. This process is similar to creating a regular invoice, but you`ll need to select the appropriate BPA and item details.

Overall, the Blanket Purchase Agreement process in R12 is designed to make it easier for businesses to manage their procurement needs. By pre-negotiating the terms of their purchases, businesses can save time and ensure that they`re getting the best possible pricing and conditions for their recurring procurement needs.