Setting Up Approved Suppliers List—Basic Data and Requirements Exercises

Basic Data Setup

Purchase Group

Purpose: The purpose of this exercise is to create a purchase group to be used on the approved suppliers list. If you already have a purchase group of your own this can be used.

Windows:
Procurement Basic Data/Purchase Groups

1. Create a new purchase group for engines, called XX-30 where you replace XX with your initials.

General exercise for Purchase Group

Supplier

Purpose: The purpose of this exercise is to create two suppliers to be used on the approved suppliers list. If you already have two suppliers, they can be used.

Windows:
Supplier

1. Create two new supplier records, called XX-170 Dunlop and XX-171 Nitto where you replace XX with your initials.

General exercise for Supplier

Authorization Group

Purpose: The purpose of this exercise is to create an authorization group to which you will belong.

Windows:
Purchase Authorization Basic Data/Authorization Groups

1. Create an authorization group called 30 with Quality Assurance as description, unless it already exists.
2. Add yourself and some of the authorizers as members of the authorization group.

General exercise for Creating an Authorization Group

Authorization Routing Template

Purpose: The purpose of this exercise is to create an authorization template for authorization group 30.

Windows:
Purchase Authorization Basic Data/Authorization Routing Templates

1. Create an authorization routing template with one step, requiring authorization by one of the members of the authorization group 30. Name the authorization group XX-1 where XX is replaced with your initials.

General exercise for Creating an Authorization Routing Template

Main Exercises

Purpose: The purpose of this exercise is to familiarize you with the functionality for setting up approved suppliers lists and how to update them.

Windows:
Approved Suppliers List
Approved Suppliers List History

It has been decided that the engines to IFS Racing's cars are a delicate part of the car and that the supplier's production needs to be audited by the quality assurance department before any purchases are allowed. If the supplier has not been audited and approved the quality assurance department will have to authorize each purchase.

First we will enter a new list. In the second main exercise we will approve the suppliers and in the third we will remove the approval for one of the suppliers. The fourth exercise is to show you what events that are logged in the history.

Setting Up Approved Suppliers List

Note: Once entered the list will be used on both purchase requisitions and purchase orders.

1. Open the Approved Suppliers List window.
2. Create a new record (F5). Your default site is populated.
3. In the Purchase Group field, enter XX-30. The description is automatically filled in.
4. In the Site field make sure it is your own site.
5. In the Routing Template ID field enter XX-1 for the authorization routing template.
6. Save your changes (F12).
7. Create a new line in the table by double-clicking on the first row.
8. Enter supplier XX-170 in the Supplier field.
9. Create a new line (F5).
10. Enter supplier XX-171 in the Supplier field for the second line.
11. Save your changes (F12)

Note: Both of the entered suppliers have now status Not Approved which means that purchases made from them still require authorization according to the authorization routing template XX-1 that you specified for the list. The authorization is only required when buying parts connected to the purchase group XX-30, which are the engines.

Approving a Supplier

1. Open the Approved Suppliers List window and query for the list you created earlier.
2. Select the line with supplier XX-170 Dunlop.
3. Right-click and then click Change Status/Approve. A dialog opens.
4. Enter the date of the audit in the Audit Date field.
5. Enter an approved until date that is one year ahead.
6. Click OK.
7. Select the line with supplier XX-171 Nitto.
8. Repeat step 3 to 5 for Nitto.
9. Click OK.

Note: Both of the entered suppliers have now status Approved and they will not need authorization when buying parts connected to the purchase group XX-30, which are the engines. When the approved until date has passed, this supplier will once again require authorization even though the status says Approved. The approved until date is optional.

Removing an Approval for a Supplier

1. Open the Approved Suppliers List window and query for the list you created earlier.
2. Select the line with supplier XX-171 Nitto.
3. Right-click and then click Change Status/Remove Approval. A dialog opens.
4. Enter the date of the new audit. As default the date of the previous audit is displayed.
5. Click OK.

Note: The supplier Nitto is no longer approved and requires authorization. The approved until date has been removed.

Reviewing Supplier History

1. Open the Approved Suppliers List window and query for the list you created earlier.
2. Select the line with supplier XX-171 Nitto.
3. Right-click and then click History.

Note: Now you can see all status changes made on the supplier Nitto including changes to the audit date and approved until date.

4. Open the Approved Suppliers List History window in the navigator.
5. Query (click F3) for purchase group XX-30 and supplier XX-171.

Note: The same history as above is displayed.

6. Go to the Approved Supplier List window again.
7. Click in the header (no line should be selected).
8. Right-click in the header and then click History.

Note: The history for all the suppliers on the list is displayed.