SA Administrator Options - Vendors - Analysis field descriptions

Class Percentages

These fields to establish the vendor classification hierarchy to determine the breakdown of your vendors by class rank. It is used in Vendor Administrator Vendor Classification.

You can define 12 classes. Class 13 is reserved for use by the system when vendors are made inactive. Specify the percentage of vendors to be included in each class. For example, if you want the top 5% of your vendors to be in Class 1, specify 5 in the Class 1 field.

You do not have to specify a percentage for all 12 classes, but the sum of the 12 classes must equal 0% or 100%. For example, you could specify 10% for Class 1-10 and leave Class 11-12 at 0.

Minimum Sales Amount for Active Vendor

Specify the minimum sales volume amount for a vendor to qualify as an active vendor. Vendors falling below this minimum are subject to reclassification as a Class 13 vendor. This occurs when you:

  • Run the Vendor Administrator Vendor Classification report,
  • Specify (S)ales for the Calc From option,
  • Then select Yes for the Update Class on Vendor Recordoption.

Vendors become inactive Class 13 vendors if their Vendor Purchase History Setup for the last 12 months is less than the amount that is specified in this field. Vendors also become inactive when these conditions are met:

  • current balance or on order balance is zero, and
  • the last activity date does not have any activity for a period of 12 months.

After vendors become Class 13 vendors, the system administrator can inactivate or delete Class 13 vendors.

PO Communication Methods

Specify the label that is associated with the PO Communication Type. This sets the value that the PO Communication Type is updated with for each Print type. If no label is specified, the default label is used (EDI, E-Mail, Fax, Print, or ION). The VMI type cannot be changed; it is always labeled VMI.

The method used to submit a purchase order to a vendor is stored on the PO Header record (POEH) using these field values. The POEH is updated under these conditions:

  • The purchase order is first printed using EDI, Email, Fax, Print, or an ION BOD.
  • A PO Header is sent to a Vendor Managed Inventory (VMI) supplier and confirmed.
  • A PO is received through the EDI Entry Processing PO Acknowledgement Report in response to an EDI850o or EDI852o.

If a PO is submitted through EDI, VMI, or ION, it is considered electronically transmitted or received. If it is faxed, emailed, or printed, it is considered manually transmitted. This distinction is important if you use the Vendor Scorecard metric analysis to identify those transactions that are submitted electronically or not. Electronic submission of POs can reduce errors, increase processing time, and ultimately, improve your customer service levels; thereby, making this an important metric to track.

Purchase Order Cost

Specify the estimated cost of processing a purchase order. This cost is used for the Vendor Ranking by Profit calculation during Vendor Administrator Vendor Classification.