Blanket purchase order
In accounting, blanket purchase order means a standing purchase order for repeat purchases from one vendor over a period, up to an agreed total, with each delivery released against it. The unreleased balance is a commitment, not a liability.
Not a rule. Bookkeeping convention — not codified. US GAAP governs recognition, measurement and presentation, not bookkeeping mechanics. Sources
What it is not called
Each of these means something else. Use one here and an accountant reading the product notices.
- recurring bill
- contract
Nearby in the catalog
No component names this concept outright. These sit in the same part of the system.
Also in Payables
Defined in Lexicon. This page is generated from that document, so the two can't disagree.