There are 4 types Of purchase orders:
1) Standard purchase order
- Standard purchase orders are the most typical kind of purchase orders. For instance, it can be applied to the provision of goods, services, consignment, and subcontracting. You will provide information like the product kind, amount, and delivery date on this kind of PO.
2) Planned purchase order
- When using a planned buy order, the amount is simply an estimate and the delivery date is tentative, unlike with a conventional purchase order. When you anticipate needing more of a specific product soon and want to send the order while you wait, you utilise this form of PO.
3) Blanket purchase order
- A blanket purchase order is used to place many orders simultaneously in the hopes of obtaining a cheaper price while regular and planned purchase orders are typically for a single item. Sending multiple orders at once may therefore make more sense if you know you can get a better price and do so will allow you to save money.
4) Contract purchase order
- The best course of action is to use a contract purchase order for the maximum amount of legal protection. Both the buyer and the seller will sign a contract when utilising this kind of PO.