Overview

Blanket Orders are used for long-term customer agreements where customers purchase products over an extended period through multiple future releases.

Instead of creating multiple quotes and pricing agreements, a Blanket Order establishes a long-term pricing arrangement and allows future Sales Orders to consume quantities from the Blanket Order.

According to FAM Powder Coating’s Business Central process, Blanket Orders are created from Sales Quotes with the Quote Type set to Blanket Order.

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Learning Objectives

After completing this lesson, you will be able to:

✓ Understand Blanket Orders

✓ Create Blanket Order Quotes

✓ Define Release Quantities

✓ Create Blanket Orders

✓ Understand Blanket Order Pricing

✓ Create Sales Orders against Blanket Orders

✓ Understand Blanket Order Validation Rules

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What is a Blanket Order?

A Blanket Order is a long-term purchasing agreement between FAM Powder Coating and a customer.

Instead of placing one large order, the customer commits to purchasing quantities over time through multiple releases.

Typical Use Cases

• Annual supply agreements
• Monthly customer releases
• Long-term contracts
• Forecast-based purchasing

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Blanket Order Process Flow

📷 Screenshot: Blanket Order Process

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Creating a Blanket Order Quote

Blanket Orders begin as Sales Quotes.

Step 1 – Create Sales Quote

1. Open Sales Quotes
2. Select New
3. Enter Customer Information
4. Enter Product Information

Step 2 – Select Blanket Order Quote Type

Locate:

Quote Type

Select:

Blanket Order

This activates Blanket Order functionality.

Blanket Order Pricing

When Quote Type = Blanket Order:

The system automatically adds:

$1.50 per KG

to pricing calculations.

This amount is included in the final quoted price.

Purpose

• Administrative handling
• Inventory planning
• Long-term agreement management

Minimum Release Quantity

A Blanket Order requires:

Min Qty in Each BO Release

This defines the minimum quantity a customer can release in a future shipment.

Example

Blanket Order Quantity:

10,000 KG

Minimum Release Quantity:

500 KG

Customer cannot release less than:

500 KG

per shipment.

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Blanket Order Pricing Formula

Blanket Order pricing may include:

• Item Pricing
• Customer Discounts
• Blanket Order Charge
• Additional Charges
• Supply Chain Surcharge (when applicable)

Additional Blanket Order Charge

$1.50 per KG

Automatically applied.

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Review and Release

Before releasing:

Verify:

✓ Customer Information

✓ Products

✓ Quantities

✓ Delivery Requirements

✓ Blanket Order Charge

✓ Minimum Release Quantity

✓ Pricing

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Release the Quote

Select:

Release

If approvals are required:

1. Send for Approval
2. Wait for Approval
3. System Releases Quote Automatically

📷 Screenshot: Release Quote

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Creating the Blanket Order

After the quote is released:

Navigate to:

Blanket Order Functions

Select:

Insert Blanket Order

📷 Screenshot: Insert Blanket Order

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Blanket Order Creation Methods

Business Central supports two creation methods.

Single Order

Creates:

1 Blanket Order

containing all selected lines.

Example

Customer: ABC Coatings

Product A
Product B
Product C

Result:

One Blanket Order

containing all three products.

Multiple Orders

Creates:

Multiple Blanket Orders

One Blanket Order for each selected line.

Example

Product A
Product B
Product C

Result:

3 Blanket Orders

One per product.

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Inventory Planning Fields

When creating a Blanket Order users must define:

Reorder Point

Defines the quantity level that triggers replenishment planning.

Example:

2,000 KG

Reorder Quantity

Defines how much inventory should be replenished.

Example:

5,000 KG

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Creating Sales Orders from Blanket Orders

Creating Sale Order

When customer requests a release:

1. Create a Sales Order
2. Enter Customer
3. Select Product
4. Enter Blanket Order Number

Field:

FP Blanket Order No.

Sale Order from Blanket Order

By choosing Make order – FPC in the blanket order

1. click on the make order – FPC button
2. choose the lines you want to make order from blanket order
3. specify the quantity
4. click on Create Order

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Blanket Order Validation

If customer has a Blanket Order for the item:

Business Central requires:

FP Blanket Order No.

to be entered.

The system uses this field to:

• Identify the Blanket Order
• Consume available quantity
• Track releases
• Validate customer pricing

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Blanket Orders and Supply Chain Surcharge

According to FAM’s custom surcharge rules:

Orders with blanket order no include supply chain surcharge

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Blanket Order Benefits

For Customers

✓ Consistent Pricing

✓ Scheduled Deliveries

✓ Long-Term Supply Security

✓ Simplified Purchasing

For FAM Powder Coating

✓ Better Forecasting

✓ Improved Production Planning

✓ Inventory Visibility

✓ Customer Retention

Best Practices

✓ Use Blanket Orders for recurring customers

✓ Verify release quantities

✓ Review minimum release requirements

✓ Confirm Blanket Order pricing

✓ Always enter FP Blanket Order No. on Sales Orders

✓ Monitor remaining quantities regularly

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Common Mistakes

Incorrect Quote Type

Using:

One Time Shipment

instead of:

Blanket Order

Missing Minimum Release Quantity

Can cause release issues later.

Sales Order cannot properly consume Blanket Order quantities.

Incorrect Reorder Point

Can impact production planning.

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Lesson Summary

After completing this lesson, users should be able to:

✓ Create Blanket Order Quotes

✓ Apply Blanket Order pricing

✓ Define release quantities

✓ Release Blanket Order Quotes

✓ Create Blanket Orders

✓ Understand Single vs Multiple Order creation

✓ Create Sales Orders against Blanket Orders

✓ Use FP Blanket Order No.

✓ Understand Blanket Order validation rules