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EIDX Order Models - Supporting Documentation

Changes to Blanket Purchase Orders

Special Notes:   

 


Allowable Blanket Purchase Order Changes

Header Level Changes

Recommendations for Allowable Discrete Purchase Order Changes generally apply to the blanket purchase order process. Exceptions/additional recommendations for BPOs are included here.

Item Level Changes

Always check with trading partners on their ability to process price changes via EDI.  Some systems require new blanket purchase orders.  EIDX recommends that the following are allowable changes on Blanket Purchase Orders:

For multiple item BPOs, only items which are additions, deletions, or changes to the order are sent in the blanket change order transaction or message.

Adding and Deleting Items

Part substitutions (including just adding or changing a revision number) are accommodated by sending a change to delete the existing line item and add a new line item.

Part revision changes are considered total part substitutions.  They should be coded like part substitutions.

Trading partners may renew or extend blanket orders by opening (adding) a new line item for the same part on an existing BPO.  However, refer to Items Per Blanket PO for caveats and recommendations.


If multiple-item BPOs are being used, add item or delete item may be used when parts are being put on (added to) or taken off (deleted from) a business process which uses blanket orders.

Cancel Order

If single-item BPO's are being used, order cancellation may be used when parts are deleted from a business process which uses blanket orders, or to confirm the seller’s rejection of a BPO.

Price Changes

Price changes are discouraged, but they happen (changes in product life-cycle, price of raw materials, price reductions due to success of forecasting programs, price re-negotiation for blanket order renewal/extension, etc.)  Price changes are difficult to handle systematically; and should always be called in (in addition to sending an electronic or paper document, which are necessary for accounting and legal audit).  If price changes frequently (for example, if the commodity uses a volatile-priced raw material like gold), the trading partners should use blanket orders that cover shorter periods, such as monthly or quarterly blanket orders.

If the contract specifies new pricing and effective dates, and if the contract says it applies to all open orders, or specifies effective dates, no change orders are needed.  However, trading partners may agree to process change orders in order to automate data entry and/or verify that price changes have been applied by both parties and that systems are in synch.  Particularly, in an Evaluated Receipts Settlement process, trading partners don't want to wait until payment to discover that one party didn't update the price in their system.  However, failure to update systems on a timely basis is really a trading partner performance issue.

Quantity Change

Change orders should always be sent for quantity changes.  Trading partners may renew or extend blanket orders by increasing the total order quantity for the part on the existing BPO.  A quantity increase may be used, too, if there is a significant increase in demand projected for the period of time that the BPO covers.  NOTE:  In this situation, some trading partners may require that a new line item be opened, a new BPO issued, or that existing terms be re-negotiated.

Quantity changes may also be sent to decrease the total order quantity when the BPO is being closed short, or if the quantity remaining on the BPO is being transferred to a new, replacement BPO.

Schedule Level Allowable Changes

BPO's with Delivery Schedules (Scheduling Agreements)

In the case of BPO's with pre-determined delivery schedules, which are really discrete orders with a long time horizon, recommendations for Changes to Discrete Purchase Orders apply.

Changes to BPO's without Delivery Schedules

Since the BPO has no schedules, there are none to change.  A schedule is added by sending a release.  A schedule that has been released is changed or deleted (canceled) in a Change to Release.


Change Order Sequence Numbers

Recommendations in Changes to Discrete Purchase Orders generally apply to change order sequence numbers  in the blanket purchase order process.  However, there are special considerations in Blanket Order environment where many of the data content standards use one transaction/message specification for multiple purposes, i.e. for Change to the BPO, Release, and some types of Changes to Releases (see Types of Releases.)

Most standards do not require the use of a Change Order Sequence number; as discussed in Changes to Discrete Purchase Orders, most standards require a unique document identifier for each instance of a particular message type.

In the X12 standard, Change Order Sequence Number is part of what uniquely identifies a change order document.  If partners choose to use sequence number or revision number counterparts for other standards, the recommendation is that  a single sequence of number should be used regardless of the type of change order.  In other words, separate sequences of numbers should not be used for Changes to the BPO, Releases, and Changes to Release, since duplicate identifiers would be assigned.  The table below illustrates this; the order of events is hypothetical.

Incorrect Usage

Correct Usage

Date

BPO# A12345

CO Seq

Resulting ID

CO  Seq

Resulting ID

11 June 2002

1st Change to BPO

01

A1234501

01

A1234501

12 June 2002

1st Release

01

A1234501

02

A1234502

15 June 2002

2nd Release

02

A1234502

03

A1234503

20 June 2002

3rd Release

03

A1234503

04

A1234504

22 June 2002

1st Change to Rlse

01

A1234501

05

A1234505

01 July 2002

2nd Change to BPO

02

A1234502

06

A1234506

 


Line Item Numbers

Line Item Numbers Used

Recommendations in Changes to Discrete Purchase Orders generally apply to line item numbers in Blanket Change Orders.  If line item numbers are used, it is very important that the line item number not be changed from the original line number sent by the buyer.   Line item number is likely to be a key value used to match the change order line item of the purchase order in the buyer's system to the sales order in the supplier's system.  If a purchasing system should renumber line items, because line items are deleted or closed, it may be difficult to match the line items in the seller's system.

Line Item Numbers Not Used

On the other hand, if the buyer does not use line item numbers in BPO processes (which implies that a part number can only appear on an order once, and not on multiple lines -- see recommendation for Single Occurrence of a Part on an Order in the section on discrete purchase orders), the seller’s system should not be dependent on line item numbers, and should be able to match change order lines by using the order number and the buyer’s part number.

See also recommendations for formatting Line Item Numbers.


Line Item Changes – What to Send

Recommendations for Changes to Discrete Purchase Orders generally apply; the difference for Blanket Orders is what the Allowable Blanket Order Changes are.


Last updated 01 February 2003