Vendor category

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Posted on by Elina

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Hi,

If I set up procurement categories to Vendor X. What should I take into account? How it effects to purchase orders and purchase requisitions?

For example, what happens:

-if someone creates purchase requisition for material that has different procurement category than supplier has?

-if new item is created with different procurement category than supplier has and planned po is needed for purchasing?

I have used procurement categories only for items, not for suppliers. If I press this function I want to make sure that there is no new complications coming out.

-Elina

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Ludwig Reinhard Microsoft Employee on at

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Hi Elina,

Why do you want/need to match your procurement categories with categories that your vendors use?

Do you vendors actually work with categories?

Best regards,

Ludwig

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Elina 150 on at

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Hi Ludwig,

this is the reason:

"When a vendor is approved to provide items and services to your legal entity, the vendor is authorized to provide products only in specific procurement categories. Procurement categories help classify vendor items and services. They also help control which vendors and products are available to employees when they make business-related purchases. Additionally, purchasing managers can use these categories to measure and report on the overall health of the purchasing organization, and to evaluate vendor performance. "

from page: technet.microsoft.com/.../jj735274.aspx

But I want to be sure that how this really effects :)

BR,

Elina

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Ludwig Reinhard Microsoft Employee on at

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Hi Elina,

I only know what you describe in practice in relation to the approved vendor functionality where you can define approved vendors for specific released items. By setting up the approved vendor check method at the product level you can define what happens if - for example - not approved products are ordered (warning vs. error).

Hope this helps.

Best regards,

Ludwig

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guk1964 10,888 on at

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When a purchase requisition is created, there may be a requirement to select an approved, or a preferred vendor, depending on how the purchasing policies are set up.

The purchasing policy is found at: Procurement and Sourcing > Setup > Policies > Purchasing Policy.

Procurement and sourcing > Procurement categories

Expand the Vendors section. Add approved or preferred vendors for the required category.

Set the vendor to be either a preferred vendor, or an approved vendor.

The Vendor status field selection setting in the Category policy rule governs whether preferred, approved, or all vendors are available on purchase requisitions

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Elina 150 on at

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Thank you, this was excatly the answer that I was looking for! :)

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Vishal Dynamics 255 on at

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Hi Elina, Magic1949,

Is there also a setup to filter the category specific to the vendor for which we are creating the Purchase order. The flow of this may be:

1. Setup Procurement categories

2. Add approved or preferred vendors for the required category. (Vend_001)

3. Create a purchase order for Vend_001

4. Click on Add Products button on the PO lines section

This should open the add products form and list all the Procurement categories but should only bring up categories for the selected vendor.

Any thoughts on this.

Cheers!

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Suggested answer

guk1964 10,888 on at

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Not exactly the hierarchy is designed to make it easy to navigate and select the category. Typically in a PR process the requestor does not know the vendor and needs to easily find the right category. The lines on the PR might convert to multi POs for multi vendors.

However, there is a vendor tab against each category where you can specify approved vendors. The vendor selection setting in the Category policy rule governs whether preferred, approved, or all vendors are available on purchase requisitions

Category rules are generally used to restrict the categories a user can select (see Technet for how to do this) e.g you might not want to give marketing the option to buy engineering spares. However, In the Vendor selection field, you can select a rule to control the selection of vendors in the category. Select one of the following options:

Allow only vendors that are preferred for this category – Employees must purchase only from preferred vendors.

Allow only vendors that are preferred or approved for this category – Employees can purchase from preferred vendors or approved vendors.

Do not allow vendor selection in this category – The employee cannot select a vendor. The vendor is selected during the review process.

Allow all vendors – There are no restrictions on vendor selection.

If you are creating POs direct then there is also a concept of catalogues. and procurement catalogues can be assigned to a catalogue by vendor. However this assume use of EP

Again see Technet for details or check out Patrick Hawker's blog post on this a few years back.

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Vishal Dynamics 255 on at

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Thanks Magic1949. My requirement is to filter the vendor product categories from Purchase order based on the vendor defined on PO. I understand this may not be available out of box and need minor changes in the code. Thanks and appreciate your help and time.

Cheers!

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Community Member on at

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Hi, when I turn on "Allow only vendors that are preferred or approved for this category" or "Allow only vendors that are preferred for this category" it hides all Vendors.

I've tested with about 20 different Vendors using both the Preferred and Approved settings. The vendors are valid for the entity and can be used when "Allow all vendors" is selected

Is there something I am missing?

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