There are six types of purchase order,these are given below.
1. purchase order (p.o) type
2. blanket purchase order
3. consultant/ independent purchase order ( request for
4. notice of order expiration: blanket/standing order
5. regular purchase order
6. standing purchase order.
There are four types of purchase orders.
1)Standard:This PO is created for one-time purchase of
2)Blanket:In this PO delivery schedule are not known
3)contract: In this PO material required are not specified.
4)planned: It is a long term agreement po. In this PO it
specifies materials,estimated costs, and tentative delivery
purchase order is a commercial document which is issued by the purchaser to the seller for ordering goods or serves.
purchase order creates legal agreement between purchaser and the seller.
purchase order is two types
1 literal order and
2 oral order.
Blanket purchase orders
Used for an unlimited number of orders. Blanket purchase
order numbers that will be accepted when placing an order
must be specified in the business account before buyers
attempt to specify a blanket purchase order number.
Limited purchase orders
Used for orders where the total amount of all orders
made specifying the limited purchase order number does not
exceed a spending limit. The spending limit for a limited
purchase order is recorded and used to validate orders that
specify a limited purchase order number to ensure the
spending limit is not exceeded. Limited purchase order
numbers that will be accepted when placing an order must be
specified in the business account before buyers attempt to
specify a limited purchase order number.
Individual purchase orders
Used for one order and acceptable purchase order numbers
are not predefined. You can specify that customers must use
a unique purchase order number for each order placed on
behalf of a business account. If you do not require a unique
purchase order number for each order, customers may reuse
purchase order numbers.
Purchasing provides the following purchase order types:
Standard Purchase Order, Planned Purchase Order, Blanket
Purchase Agreement, and Contract Purchase Agreement. You can
use the Document Name field in the Document Types window to
change the names of these documents. For example, if you
enter Regular Purchase Order in the Document Name field for
the Standard Purchase Order type, your choices in the Type
field in the Purchase Orders window will be Regular Purchase
Order, Planned Purchase Order, Blanket Purchase Agreement,
and Contract Purchase Agreement.
From the following data calculate (i) P/V Ratio (ii) Profit
when sales are Rs.20,000 and (iii) the new Break-Even
Point, if the selling price is reduced by 20%
Fixed expenses Rs. 4,000
Break-Even-Pont Rs. 10,000
A company maintains a margin of safety of 25% on its
current sales and earns a profit of Rs. 30 lakhs per annum.
If the company has a profit volume (P/V) ratio of 40%, its
current sales amount to A. Rs. 200 lakhs;
B. Rs. 300 lakhs;
C. Rs. 325 lakhs;
D. None of the above.