Supplier Management

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    Piyush Singh
    Do most supplier site attributes need to be populated?
    Topic posted July 31, 2018 by Piyush SinghGold Trophy: 10,000+ Points, tagged Tip 
    78 Views, 1 Comment
    Do most supplier site attributes need to be populated?
    No. For most attributes, a value is only needed if business with the supplier needs to deviate from standard policy.

    Supplier site stores business terms and controls that govern how procure to pay transactions are executed with the supplier, like purchase orders and invoices. Entering supplier site values for all spend authorized suppliers would be a maintenance nightmare.

    So, what does cloud offer? In cloud, the terms and controls can be managed at a business unit or global level to enforce a standard procure to pay business process using setup pages ‘Configure Procurement Business Function’, ‘Manage Invoice Options’, ‘Manage Purchasing Line Types’ and ‘Manage Receiving Parameters’.

    For example, your organization might have stringent policy for invoice tolerances and payment terms and in general do not allow suppliers deviate from these.

    For such cases, you need to save the standard values of these business terms just once in their respective setup pages and there is no need to capture them for each of the suppliers’ sites. If you have modeled your data like this, then transactions will default the values of these business terms from their respective setup pages, as these will not have any value at site level.

    Occasionally, if your organization agrees on business terms with a supplier that deviate from the standards, then you need to capture these at supplier site level. Transactions in these cases will default the business terms values from the site as there are values saved (and will not pick the values from the setup page).

    Best Business Practice Tip:

    If your organization has not yet identified these standard business terms and controls, then do that now. Evaluate these standard business terms and controls and capture them in their respective setup pages. For suppliers that agree to these standards, you need not populate them for their profiles.