Procedure: Create a Vendor Group

Perform the following to create a new vendor group:

1. Click Accounts payable, click Setup, click Vendors, and then click Vendor
groups.
2. Click the New button to create a new record.
3. Enter a short name for the vendor group in the Vendor group field. This name is
used throughout the system.
4. Enter the full name of the vendor group in the Description field. The name acts
as additional specification of the vendors included in the vendor group. To view the
name of the vendor in all dialog boxes
that display a vendor group move the pointer over the vendor group and wait until
the name is displayed.
5. Specify a payment term that corresponds to the default time interval between the
purchase of an item and the invoice due date in the Terms of payment field. Use
the Terms of payment list for cash flow forecasting.
For example, the payment term is used for vendor payment coverage based on one
purchase budget per vendor group. If a purchase budget is set up for vendor group
X and a purchase of 10,000 USD is budgeted for June 15, a payment term is
specified to correspond to
the current month + 30 days. On this basis, coverage is arranged so that the
budgeted item price of 10,000 USD is due for payment on July 30.
6. Specify a term of payment that corresponds to the default interval between the
due date and the actual payment time in the Settle period field. Use the payment
terms with vendor payment coverage based on one purchase budget for each
vendor group. Use the Settle period field in cash flow calculations.
7. Enter or select the default tax group for the selected vendor group in the Default
tax group field.

Procedure: Create a Vendor - General

Perform the following to create a new vendor:
1. Click Accounts payable, click Common, click Vendors, and then click All
vendors.
2. Click Vendor in the New group on the Action Pane.

3. Enter a Vendor ID with up to 20 characters in the Vendor account field, and a

vendor name with up to 100 characters in the Name field. The Vendor account is
generated automatically if the vendor account number sequence is specified in the
Accounts payable parameters form in the Number sequences section. Some
companies prefer to enter the number sequences manually. To do this, select the
Manual check box on the General Fast Tab in the Number sequences form. Avoid
using numbers that can be changed, such as telephone numbers.
4. Select a Record type of either Person or Organization. This selection will
determine what fields are available on the form.
5. Enter the name to use when you search for the vendor in the Search name field.
If it is not entered, the Name field is used by default.
6. Select the vendor group to which the vendor belongs in the Group list.
7. As appropriate, enter values in the other fields in the Organization details and
Other information area.

Procedure: Create a Vendor - Address and Contact

Perform the following to add addresses and contact information about the vendor:
1. From the Vendors form, enter the vendor's address and contact details on the
Addresses and Contact information Fast Tabs.
2. If a vendor has more than one address, such as invoice, delivery, purchase,
alternative delivery address, or SWIFT, enter additional addresses by clicking the
Add button.
3. Additionally, enter address, contact information, and parameters for access from
the Internet. Click the Add button on the Contact information Fast Tab.

Procedure: Create a Vendor - Miscellaneous Details

Perform the following to set Miscellaneous vendor details.

1. From the Vendors form, click the Miscellaneous details Fast Tab.
2. Enter the vendor credit rating in the Credit rating field. It is used for statistical
purposes only.
3. Enter the maximum outstanding amount allowed in the balance of the vendor's
account in the Credit limit field. This amount always is stated in the default
currency.
4. As part of updating purchase orders or invoices, set up the system to verify
whether an account is over its credit limit in the Credit rating section of the
Accounts payable parameters form. If an account is beyond the credit limit
specified, the update is stopped.
5. To apply vendor holds, click the Vendor tab, then click the On hold button in the
Maintain group of the Action Pane. The following types of holds are available:
No - the vendor has no holds. All types of transactions are permitted
Invoice - no invoices can be created or posted for this vendor.
All - all transactions for this vendor are on hold
Payment - no payments can be generated for this vendor. Payments that were
generated before the hold was applied can still be posted.
Requisition - no requisitions can be generated for this vendor.
Never - prevents vendors from being put on hold for inactivity. This may occur if a
batch job is configured to periodically sweep the vendor master for inactive
vendors.

Procedure: Create a Vendor - Define Vendor Profile

Vendor profiles allow organizations to track specific details about vendors. Perform
the following to define vendor profiles.
1. From the Vendors form, click the Vendor profile Fast Tab.
2. Select the Bid only check box if the vendor has submitted quotes or proposals
but has not yet been approved for purchases. You can use this indicator to associate
bids and other documentation with the vendor account.
3. Select the One-time supplier check box if the vendor is a one-time supplier. If
the One-time supplier check box is selected when a purchase order is created, the
distinction is indicated here.
4. Select the Locally owned check box if the vendor meets your guidelines for
being a locally owned business. Collecting this data allows local businesses to have
priority on certain contracts.
5. Select the Small business check box if the vendor meets your guidelines for
being a small business. You can collect this data to generate reports about this
information.
6. Select the Woman owner check box if the vendor is owned by a woman. This
field is used for statistical purposes only.
7. Continue selecting the appropriate check boxes as appropriate in this section.

Procedure: Create a Vendor - Purchasing Demographics

Enter or view the currency, line of business, chain and contact name for the vendor
in the Vendors form, on the Purchasing Demographics Fast Tab.

Procedure: Create a Vendor - Invoice and Delivery

Enter or view invoice defaults, delivery, and tax for the vendor in the Vendors
form, on the Invoice and Delivery Fast Tab.

Procedure: Create a Vendor - Purchase Order Defaults and

Payment

Enter or view the default location, discounts and change management for purchase
orders when created for the vendor in the Vendors form, on the Purchase Order
Defaults Fast Tab.
Enter information about how to manage payments on the invoices entered in
Accounts Payable in the Vendors form, on the Payment Fast Tab.