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.