Vendor exclusion

Dawid Kaczmarek Updated by Dawid Kaczmarek

Vendor exclusion

In some cases, the setup and usage of Advanced Vendor Management (AVA ID’s) can require a high volume of detailed data and thereby also effort for maintaining the data. In these cases, it might be easier to look at what is NOT allowed. For these cases the Vendor exclusion framework is available.

By using the exclusion framework, a combination of Vendor, Vendor group or Country, can be setup to be blocked for a specific Item, an exclusion group of items or all items.

The vendor exclusion setup can be used in combination with the advanced vendor approval but blocking functionality will overrule approved functionality.

The blocking functionality will prevent creation of data in the following areas:

Purchase agreements

Planned purchase orders (at manual creation)

Purchase order lines

Setup

This functionality does not require any setup of number sequence, it will work whenever vendor exclusion data has been setup and approved.

However, there are 2 parameters that control the level of approvals you want to use as soon as data has been setup in the form ‘Vendor exclusion list’ and approved (if mandatory according to the parameter setting).

Go to: Accounts payable/Setup/Advanced vendor approval/ Advanced vendor approval setup/tab page Advanced vendor approval, to setup the 2 parameters:

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Vendor exclusion group

In the [Procurement and sourcing / Vendor exclusion list – Item vendor exclusion groups] exclusion groups can be created. This provides the possibility to create groups of released products (items) to be excluded from procurement in combination with a single vendor, a vendor group, or all vendors in a country (or region if setup as a country code).

Each item can be setup to be part of one or more groups.

For each exclusion group, there is accessed to see and maintain which products are included into the group using the menu [Related items]. A tool for selection of items to be added to the selected group, is also available using the menu [Add items]. A search for records to be included can be setup and it can be selected to run the search with or without update.

If run without update, the info log will show the items included in the search and information whether the item already is part of the group.

If run with update, the selected items will be added to the group.

Vendor exclusion list

In the [Procurement and sourcing / Vendor exclusion list – Vendor exclusion list] the total setup of Vendor exclusion is available, cross item and vendors. From here existing setup can be maintained and new setup can be created and approved. Only records that are not approved can be edited (unless allowed otherwise via the parameter) and only the date fields will be editable once saved. To exclude all vendors in a country, select Account code = All and the field Country/Region becomes editable as well as mandatory.

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Released product details

Access to vendor exclusion is also available direct from the released product form on the tab page [Purchase]. From here the vendor exclusion settings relevant for the specific product is accessible.

Dates on data shown on the tab page [Vendor exclusion list] are editable if not yet approved. If marked as mandatory for approval only records that are approved will be included in the exclusion logic. Data shown on the tab page [Exclusions by Group or All] is not editable, as this is a visualization of exclusion where the item is part of a Group or All setting. Embedded Image

Exclusion from purchase order

When creating a purchase order line, control for vendor approval as well as for vendor exclusion is done for each purchase order line being created. If automatic control of either vendor approval or vendor exclusion are failing, creation of the purchase order line will fail. In the infolog detailed information will be available.

When adding items to a purchase order line using the lookup function, information of exclusion is available for the items shown in the lookup form. In the example below it can be seen that items 4401-4403 are excluded for the vendor or delivery address.

This will prevent creation of the purchase order line if item 4401 is selected.

Even when the item 4401 has been approved for purchase using the AVA setup, it will still be shown that this item is not allowed because of exclusion. If any exclusion is identified, this will overrule AVA setup.

Exclusion from planned purchase order

When creating a planned purchase order manually and choosing vendor or changing the vendor on an existing planned purchase order, control for vendor approval as well as for vendor exclusion is performed.

Choosing vendors indicated as blocked, will prevent the record in being updated and an error is shown. Embedded Image

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