Vendor Approval

[Former Member]

Hi Experts,

In our company we have vendor master in place say for example vendor A ( is supplying RM X) & Vendor B (is supplying RM Y) but later Vendor B started to supply X then our purchase department by mistaken he had purchased the RM X from vendor B but quality of the same not up to mark.

Now we want to make some approval kind of thing before we procure the RM from non regular vendor.

How we can map the same.

Regards,

VIJAY

[Former Member]

If the problem is frequent enough, set up Release Strategy (Approval process) for PO.

[former_member182149]

Hi

Have you considered using the quality information record. Transaction QI01, QI02, QI03. Within the quality information record for procurement you can block the vendor, material, plant combination for the following:

1. purchase orders
2. rfq
3. goods receipt
4. source determination

This would allow you to stop the procurement of that specific material until quality improves while still procuring other material form the vendor in question.

Within the control key for procurement you can specify how the systems reacts to the block, information, warning, error. In your case i would suggest an error message be generated.

If you want to block all activity for the specific vendor then consider a total vendor block (in the vendor master record)

[former_member182149]

Hi

Another possiblity is the use of source list in procurement along with the before mentioned Quality Information record.

The source list is used in the administration of sources of supply. It specifies the allowed (and disallowed) sources of a material for a certain plant within a predefined period. Each source is defined by means of a source list record.

Using the source list you could restrict the vendor / material combinations used to procure materials to only those that have been previously approved.

The transactions that are related to source lists are:

ME01, ME02, ME04

You can generate source list from you purchasing activity using ME05.

Using a source list will require addition activity in maintaing the material vendor combinations that you are allowed to procure from, but it does stop accidental procurement from non approved vendor / material combinations

To ensure that a source list is mandatory, check the source list indicator on the purchasing view of the material master

[Former Member · Accepted solution]

Hi Vijay,

In you example the material, plant, and vendor is already created and it therefore don't make sense to make an approval, since it's too late.

The real change is the material-plant-vendor combination which have to be approved.

You can make this very simple by using a source list with a fixed vendor for the plant-material combination.

If you want to use the quality info record, you suddenly have to involve the quality department, but for which reason? If you chose this solution, you'll need to have a Quality Inforecord in place. And on what basis? You need to create a profile in BS02. Define a number of deliveries you would like to evaluate before you approve the Vendor. Define the steps of approval at this stage for GR activity. This ensures that after each GR and subsequent QA approval of the inspection lot, the Vendor Status changes to next level. Say from initial -> 1st level ->2nd Level -> 3rd Level ->Approved.

In transaction FK08 you can control if a vendor is released, but this will trigger all materials from that vendor, so that solution can only be used for new vendors.

BR

Erik