Configure approved vendors
Approved vendor lists (AVL) allow for the placement of limitations on an item to specify which vendors that the item can be purchased from. This method ensures that the purchasing transactions are always performed only on the approved list.
During the setup of the item model group, a default vendor check is specified within the item model group, which can be changed on the item level if needed.
At the product level, the vendor check method can be modified to dictate how restrictive the control for the approved vendor list is for that specific item. The options in the vendor check method are:
No check - Any vendor can be used whether the vendor is on the AVL or not.
Warning only - When a vendor is used that isn't on the AVL, the user gets a warning, but the transaction saves.
Not allowed - When a vendor is used that isn't on the AVL, the user gets an error message, and the transaction won't save.
Inventory management > Setup > Inventory > Item model groups
When an item is added to a purchase document line, Supply Chain Management completes a check on the item to determine if a Warning only or Not allowed approved vendor check method is required on the item. If either Warning only or Not allowed is set on the item, a review of the approved vendor list for the item to find the vendor on the purchase document is completed.
The dates on the AVL are then validated to verify that the vendor is approved for the date of the purchase document. If the vendor isn't approved and the Vendor check message is set to warning, a message displays stating that the specified vendor isn't authorized for the item, but a purchase order is created. If the Approved vendor check method is set to Not allowed, the purchase order line won't be created, and the user must change the approved vendor setting or change vendors on the PO.
The validation of the item and vendor relationship setup on the approved vendor list is validated on entry of the item into:
Purchase order
Purchase agreements
Purchase requisitions
Request for quote (RFQ) responses - When you receive a reply from vendors for a quotation, the purchase price that is quoted by the vendor is entered on the Request for quotation reply page and accepted. While you're accepting the purchase quotation, the approved vendor list for the item is validated with the vendor with whom the RFQ response is placed.