What’s a Blanket PO?
A blanket PO is the best option when you anticipate receiving multiple invoices from the same vendor for similar services, especially when you want to apply the invoices to different cost objects, such as for lab coat cleaning services or use of the Harvard CNS.
When should I use one?
Per VPF's Buy2Pay guidance, it is appropriate to request a blanket PO when:
- Goods or services will be delivered periodically, over a 12-month period (or less)
- Individual orders against the blanket PO are relatively inexpensive
- Invoices against the blanket PO may be charged across multiple cost objects
How do I get started?
Here are some best practices for setting up Blanket POs:
- Create a Blanket PO against a discretionary account that does not expire (like a start-up).
- Be sure to choose the
Requisition by amountoption when creating the PO. This is not the default setting.
- Ideally, the dates should correspond to the MIT fiscal year: 7/1 — 6/30. Blanket POs should not have a period greater than a year, per MIT policy, so a new PO will be needed for each year.
- The amount should be a reasonable estimate of the charges you will incur for the year. If the invoices exceed this amount, a change order to add funds will be required. If the total amount will exceed $10,000, a selection of source form will be required (note: VPF links may need to be clicked once, than again, to be properly accessed).
- When submitting an invoice for payment, make sure the PO number and the cost object being charged are clearly marked.
- When the finance team reaches out to confirm an invoice on a blanket PO is OK to pay, they will ask the research group (usually the PI and the AA) to confirm the cost object for this invoice (unless the cost object has already been manually added to the invoice prior to its submission to Coupa).
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