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Solution Document1

The document proposes a solution to track vendor performance and status within the system. It involves creating a new status field that can be updated automatically or manually based on vendor activity. The statuses would be Initial, Continue, Approved, and Blocked - with rules for transitioning between each status. A new Z screen would display the vendor, status, and include checks to ensure the proper status is assigned or changed based on purchase orders and performance metrics over six months. This would allow separating approved and non-approved vendors to control purchase orders.

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SAPDHRUV
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49 views3 pages

Solution Document1

The document proposes a solution to track vendor performance and status within the system. It involves creating a new status field that can be updated automatically or manually based on vendor activity. The statuses would be Initial, Continue, Approved, and Blocked - with rules for transitioning between each status. A new Z screen would display the vendor, status, and include checks to ensure the proper status is assigned or changed based on purchase orders and performance metrics over six months. This would allow separating approved and non-approved vendors to control purchase orders.

Uploaded by

SAPDHRUV
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Solution Document :- Vendor Status (Vendor Approval).

Business context- Existing Process


As of now, there are so many vendors in the system around 5-6 thousand (approx) and out of that 2.5-3 thousand vendors are given order for procuring any materials, and remaining vendors are in idle mode since long time in system (Means these vendors have not been given order since long time means these may not be approved vendor for JSPL). In Current process, there is no control over vendors as per their performance wise so that they can be bifurcated as approved and non approved vendors. Standard system gives automatic blocking and manual blocking of vendor but these processes do not fulfill the business requirement.

Requirement:
There should be some status field of vendor and according to vendors activity and performance, that status fields should be changed, so that we can bifurcate all vendors according to their performance as approved and as non approved vendor and we can prevent orders to non approved vendor which dont have good performance.

Proposed Solution:
There will be customized 4 radio buttons which will present vendors status whether vendor is initial mode, in process mode, in approved mode and in blocked mode, those radio buttons will be INITIAL, CONTINUE, APPROVED, BLOCKED. (A) INITIAL - whenever new vendor is created, that new vendor must have Initial status until PO is raised for that particular vendor. (B) CONTINUE - As soon as Purchase Order has been raised for that vendor, so system will change status from `Initial to `Continue, which means vendor performance would be checked for next 6 months. (C) APPROVED - Once vendor fulfill all expectation likes as Goods delivery on time, rates, form 1 and 2, and all credential document are as per expectation of JSPL. So system will change status from Continue to `Approved. (D) BLOCKED - If vendor is blocked for performance so status will be `blocked.

Development Consideration:
A new Z screen will be developed with combination of vendor code, vendor name, company code, purchase organization and status fields. And these status fields will be changed from one radio button to other radio button whenever that satisfied following conditions: 1. New vendor is created then status of this vendor must be maintained as INITIAL status in z screen. 2. After raising Purchase Order or outline agreement for that particular vendor then INITIAL radio button is changed to CONTINUE radio button and vendor performance would be check for 6 months of period. After that, there will be one tab which would have some field of informations related to vendor which are as follows: (i) Delivery date-Okay (ii) Inspection of Material- Okay (iii) Rate- Okay or Not Okay (iv) Quantity- Okay or Not Okay (v) Form- Okay or Not Okay (vi) Document- Okay or Not Okay 3. After CONTINUES Status, System will check these fields are OKEY or NOT OKEY, and if it is OKEY, then system will change status from CONTINUE to APPROVED means that vendor will be approved for further procurement. 4. And if it is Not Okay, then system will change status from CONTINUE to BLOCKED means that vendor will be blocked and no more purchase order will be created for that vendor. There are following User exit and check need to be implemented according to following activities. 1. A new z screen (Which is discussed above) should be made and that need to be included into Vendor Master Program with user exit or BADi. 2. There will be check when new vendor is created, so status field must be INITIAL. 3. There will be a check and exit at time of Purchase Order (For whether vendors status INITIAL to CONTINUE) 4. There will be a check and exit for CONTINUE status, that it will be valid for 6 month and if it is not changed into APPROVED status within 6 Months, so system will change CONTINUE status to BLOCKED. 5. If system finds (Manually entry by user) Delivery date-Okay, Inspection of MaterialOkay, Rate- Okay or Not Okay, Quantity- Okay or Not Okay, Form- Okay or Not Okay, Document- Okay or Not Okay Then system changes status from CONTINUE to APPROVED. 6. There will be User exit on BLOCK status that, vendor will be permanently blocked and no more purchase order will be created. 7. There will be option to change these four statuses manually as well.

Proposed Screen to be developed:


There will be zscreen which will have following fields: Vendor Code Vendor Name Company Code Purchase Organization Four radio buttons and that will be changed according to respective logic which has been discussed above.

Business Impact:
1. 2. 3. 4. After having this development, Approved and non approved vendor could be bifurcated. We would have control on Purchase Order on the basis of Vendor Performance. Automatic Blocking will be done. System feasibly might be affected after putting so many check and user exit.

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