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What is a Standing Purchase Order?

A Standing Purchase Order is the method for placing reoccurring orders which will require multiple payments over a period of time.  Some examples are:  maintenance/service contracts, auto parts for transportation department from a specific vendor.

When to use:

  • The goods or services are reoccurring purchases.
  • The order involves variable dollar amounts and/or quantities.
  • The goods or services on an order may change over time.
  • The maximum order amount may need to be adjusted over time.
  • The order has specific contract start and end dates.