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How to turn a year-long price-and-quantity agreement into a live, draw-down contract your buyers and sellers actually work against.
A blanket order is a single long-term agreement to buy or sell agreed items, at an agreed rate, up to an agreed quantity, over a fixed period — with individual orders released against it as you actually need the goods. ERPNext ships this as a first-class document: the Blanket Order. This paper explains what a blanket order really is, exactly how ERPNext models both the buy-side and sell-side versions, how each Sales or Purchase Order draws down against the agreement, and how the system tracks ordered-versus-remaining quantity so you never over-commit. It's written for procurement and sales leaders who want price certainty and planning discipline without re-negotiating every release.
The complete paper — every section, in a clean branded PDF you can share with your team. Free, no email required.
No — each Blanket Order has an Order Type of either Selling or Purchasing. A Selling agreement is tied to a Customer and released via Sales Orders; a Purchasing agreement is tied to a Supplier and released via Purchase Orders. Create separate blanket orders for each side.
The Rate on a Blanket Order line is the agreed base rate for the item, the same as on any order line. GST is applied through taxes and charges on the Sales or Purchase Order released against it, so tax is handled on the actual transaction — not baked into the blanket rate.
ERPNext tracks Ordered Quantity against the agreed quantity for each item and validates every release. By default it blocks ordering beyond what remains; a Blanket Order Allowance percentage in Selling Settings and Buying Settings lets you permit a defined over-draw if your contract allows it.
The agreement simply stops being the source for new releases once its validity window closes. Because To Date can be edited after submission, you can extend an ongoing contract rather than recreating it — and you should review any unconsumed remaining quantity before period-end to consume or renegotiate it.
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