Standing Orders are issued for the repeated purchase of frequently used, low-value supply items or routine services and the vendor agrees to provide goods or services on a demand basis. In some cases, a Standing Order may be created for emergency maintenance/repair services. A Standing Order remains open for a specific period of time, normally one fiscal year, in order to facilitate repeated purchases.
The Purchase Order generally establishes prices, terms, conditions, and a period of time covered. Shipments are to be made as required by the purchaser.
The standing order is useful when:
All requirements for quotes, etc. apply to standing purchase orders and must be justified in similar fashion to one time purchases.