Settings for Supplier and Items

This document explains how to set purchase basic data for supplier, item, and connect supplier/item information.

Outcome

Supplier, item, and supplier/item information is defined.

Some of the most important files used for the programs above are:

CIDMAS

Vendor Master

CIDADR

Vendor Address

CIDREF

Vendor Reference person

CIDVEN

Vendor Master Purchase & Financial

MITVEN

Item/Vendor

MITMAS

Item Master

MITMAD

Item Master Additional data

MITMPR

Item Master Price & Sales data

MITBAL

Warehouse/item stock and planning values

MITFAC

Facility/item

Before you start

No prerequisites are needed.

Outline

Specify supplier settings

The supplier file may be updated from two main programs: 'Supplier. Open' (CRS620) and 'Supplier. Define Purchase & Financial' (CRS624). A supplier number record must be specified in both programs to be able to use the supplier in the purchase order flow. From these programs, many other supplier-related programs are reached, for example, programs used for addresses, charges, and transport times.

  1. Start 'Supplier. Open' (CRS620). Specify panel sequence EFT1235.

  2. Fill in appropriate fields on the panels.

  3. Start 'Supplier. Connect Address' (CRS622) through option 11 from (CRS620). Fill in appropriate fields on the panels. Custom fields can be linked with an address where the address type is 04 (Origin address) using related option 11 (custom fields) in 'Supplier. Connect Address' (CRS622/B).

  4. Start 'Supplier. Connect Reference' (CRS623) through option 12 from (CRS620). Fill in appropriate fields on the panels.

    From the B panel in 'Supplier. Connect Reference' (CRS623/B), you can replace an existing reference for a supplier by using option 14 (Replace ref). The program will not change the reference on existing orders, but the new reference will be valid on new orders. Option 14 also updates the reference field in 'Supplier. Connect Item' (PPS040).

    If you use divisions in M3, you may want to define different supplier values for the various divisions. For example, a big supplier often has locations in different cities or different countries for which division-specific currency codes must be defined. Such division-specific values for selected fields can be specified in 'Supplier. Open/Division' (MFS620).

  5. Start 'Supplier. Define Purchase & Financial' (CRS624) through option 13 from (CRS620). Fill in appropriate fields on the panels.

    The program consists mostly of values used in the purchase order and invoicing flows. These values are defaulted on the purchase order when the order is entered.

    A record must first exist in this program to be able to enter a purchase order into the system. If no record exists, an error message is displayed when the purchase order is specified in 'Purchase Order. Open' (PPS200).

  6. Start 'Supplier. Connect Order Total Discount' (PPS008) through option 12 from (CRS624).

    Here, a value-dependent order total discount per supplier can be specified. The discount is displayed as the Order total discount on the H panel of 'Purchase Order. Open' (PPS200/H). If an order total discount table exists, F14 (Order tot disc) is highlighted on the H panel, and the function key can be used to see the next discount level in the table.

  7. Start 'Supplier. Connect Charges' (PPS009) through option 13 from (CRS624). Fill limit values and charges.

  8. Start 'Supplier. Connect Transp Lead Times' (PPS010) through option 14 from (CRS624).

  9. These are the other options in (CRS624):

    • Option 15 calls 'Supplier. Connect Purchase Order Types' (PPS011) where valid order types are entered for a specific supplier. For a check on valid order types upon purchase order registration to be done, the PO Type Check parameter (parameter 190) in 'Purchase Order Type. Open' (PPS095) must be selected.
    • In 'Supplier. Connect Assortment' (PPS012) which is reached through option 16, quality classes per supplier and item group, product group or procurement group are defined. The quality classes are specified in 'Quality Class. Open' (PPS020).
    • In 'Supplier. Connect Quality Audit Types' (PPS013) which is reached through option 17, you can follow up on quality activities performed on a specified supplier. Audit types are specified in 'Quality Audit Type. Open' (PPS025) and are used to classify the type of audit performed. One audit type could, for example, be an annual audit or an audit performed on new suppliers. The date for the audit and a status code indicating whether the audit is performed or not are specified in 'Supplier. Connect Quality Audit Types' (PPS013).
    • 'Supplier. Connect Delivery Term Text' (PPS014) which is reached through option 18, enables you to enter an extra text per delivery term. If the delivery term is FOB, for example, the loading port is entered in the delivery term text field and printed on the purchase order document. You may specify this text manually each time an order is entered but if it is placed here, it will be defaulted as the standard value.
  10. Start 'Point of Time Table. Open' (RPS080) through option 19 from (CRS624). Specify a point of time table which can be used if you, for example, have a certain day of the week when you receive deliveries from your supplier.

Specify item settings

  1. Start 'Item. Open' (MMS001). Fill in appropriate fields on the panels.

    Several programs related to 'Item. Open' (MMS001) can be reached with options from the B panel. See the figure below for a description of some programs.

    • In 'Item. Connect Alternate U/M' (MMS015) which is reached through option 12, alternate quantity and price units of measurement are entered. The possible alternate units are entered together with the conversion factor between them.
    • In 'Item. Define Relations' (MMS020) which is reached through option 13, relations between items are entered. If an item is to be replaced by another, the related item is entered in this program.
    • In 'Item. Connect Alias Number' (MMS025) which is reached through option 14, alias numbers are entered for the items. Alias numbers can be used for customer order entry and in the purchase order entry. To be able to use matrix and list view entry in 'Purchase Order. Open Lines' (PPS201), alias numbers with alias type 88 must be specified in 'Item. Connect Alias Number' (MMS025). The alias type indicates the type of alias number. To be able to use the alias number in 'Purchase Order. Open Lines' (PPS201), alias numbers 2 and 3 must be defined in the check sequence on the P panel.
    • In 'Item. Enter Names/Language' (MMS030) which is reached through option 15, the item name and description are entered in different languages. The foreign language names are displayed as default during entry of new customer or purchase order lines and printed on the external documents for those customer/suppliers who are connected to the language.
  2. Start 'Item. Connect Warehouse' (MMS002). Fill in appropriate fields on the panels.

  3. Start 'Item. Connect Facility' (MMS003). Fill in appropriate fields on the panels.

    The administrative lead time which is one of the components in the total lead time, is specified on the E panel. This is the time required for administrative activities before a purchase order is released.

    On the E panel, the current average and cost price which are used for inventory accounting, are displayed. The average price history can be viewed in Average Cost. Display/Update History' (CAS371), which is reached through option 12 from the B panel or F14 from the E panel.

Specify supplier/item settings

  1. Start 'Supplier. Connect Item' (PPS040). Fill in appropriate fields on the panels.

    • Option 11 calls 'Purchase Agreement. Open' (PPS100), which is used to enter agreements for a certain supplier. Read more about agreements in the Agreement documentation.
    • Option 12 calls 'Purchase Statistics. Display' (PPS450) and option 13 calls 'Supplier Item. Connect Manufacturer' (PPS041).
  2. Start 'Supplier Item. Connect Manufacturer' (PPS041) which is reached through option 13 from (PPS040). (PPS041) is used to enter manufacturers for a certain product, for informational purposes only.

Supplier settings parameters

Program ID/Panel

Field

The field indicates...

(CRS620/B)

Sorting order

… which information is to be displayed on the panel.

Six different sorting orders can be used to search for suppliers. Generic search can be of big help when searching for a supplier where only parts of the name are known. (Sorting order 5 and * around the known part of the name, for example *Partner*, will return all suppliers with the word Partner in the supplier name).

(CRS620/B)

Supplier type

... different suppliers, agents, insurance companies, payees only etc. Supplier type zero is the type for normal suppliers.

(CRS620/E)

Status

... the supplier status.

20 is used to specify an approved supplier. If a supplier is to be deleted this is best performed by setting the status to 90 (deactivated). This prevents purchase orders from being linked to the supplier identity.

05 is used to specify a template type supplier. This type of supplier status cannot be used for purchase order related transactions, except for copying a supplier.

(CRS620/E)

Search key

... a search key.

It is a user-defined short name for the supplier, which can be used as a search key in one of the inquiries. If no search key is entered, the first 10 positions of the 'Name' field will be used automatically.

(CRS620/E)

Facsimile number

... the fax number to which the list should be sent when documents are printed directly to a fax machine.

(CRS620/E)

Language

... the language in which external documents are printed. The language codes are entered in 'Language. Open' (CRS010).

(CRS620/E)

Harbor/airport

... the ID of the harbor or airport. It is used for reporting purposes only in trade statistics. The IDs are specified in 'Harbor/Airport. Open' (CRS073).

(CRS620/E)

Media profile

...a media controlling object that is used as a filter in the media control table/CRS945.

(CRS620/E)

Company communication address

…the net file (Internet or e-mail) address.

(CRS620/F)

User defined fields

…user-defined text that can be used for selecting reports or for individual information.

The fields are of different length and one of them is numeric. The field names can be user-defined in 'Settings – User-defined Supplier Fields' (CRS713).

(CRS622/B)

Address type

... the type of address to use.

(CRS622/E)

Address no

... a short number for the address ID.

(CRS622/E)

Printout code

... the supplier's name or address line 1 should be printed first.

(CRS623/B)

Reference type

… which supplier references to use, for example, purchase reference (=10) and repair or subcontract reference (=15).

(CRS623/B)

Reference

… a reference ID.

(CRS623/E)

Your reference 1

.. the name of the person that is to be contacted in matters concerning customer or purchase orders.

(CRS624/E)

Supplier group

.. a user-defined field for identifying different groups of suppliers. The groups are entered in 'Supplier Group. Open' (CRS150).

Custom fields can be associated with the supplier group using related option 11 (conn u-d fld gr) in 'Supplier Group. Open' (CRS150/B).

(CRS624/E)

Buyer

… the regular buyer responsible for purchasing. The buyer entered on the item in 'Item. Connect 'Warehouse' (MMS002), if any, is used on planned orders generated by M3.

(CRS624/E)

Authorized

… authorizing supplier invoices in 'Supplier Invoice. Record' (APS100). This value is proposed as the default when you enter a purchase invoice.

(CRS624/E)

Order type

… an order type. It is used as a default order type when a purchase order is entered for the specified supplier.

(CRS624/E)

Monitoring list and Monitor class

...the list and level for this supplier. It is used for following up on deliveries and transportation. Read more about monitoring in the Monitoring documentation.

(CRS624/E)

Delivery terms, Freight terms, Delivery method and Packaging terms

...are defaulted on the purchase order and printed on the purchase order document.

(CRS624/E)

Statistical supplier

…if the statistics for another supplier should be updated when a purchase order is placed by this supplier. If no supplier number is entered, the supplier number on the record is used in the statistics.

(CRS624/E)

ABC cls suppl and ABC method sup

…the suppliers depending on, for example, purchased volume. The classification can be finished either manually or automatically in 'ABC Classification Supplier' (PPS445). Read more about ABC Classification in the Statistics documentation.

(CRS624/E)

PIN Code

… the PIN (Personal Identity Number) code for an M3 telephone or an Internet order. The customer enters the password when placing an order.

(CRS624/E)

Disc calc mtd

..the method for calculating the purchase order line's total discount.

The total discount can be counted as a total of D1, D2, and D3 (=0) or as a chain discount (=1).

The chain discount is calculated as (100-D1)*(100-D2)*(100-D3) where D1 is the discount defined by the supplier, D2 is the discount defined by the agreement and D3 is the discount defined by number/agreement.

(CRS624/E)

Point of time table (Shipment table)

…the ID for the point of time table.

(CRS624/F)

VAT code

VAT code is defaulted when an invoice is entered for this supplier. VAT codes are defined in 'VAT Code. Open' (CRS030).

(CRS624/F)

Currency, exchange rate type and payment terms

These are defaulted on the purchase order header.

(CRS624/F)

Tolerance Payment

… within how many days after the due date an invoice must be paid.

(CRS624/F)

Supplier statistics and no yrs statistics

…if and for how long statistics should be saved for this supplier. Read more about statistics in the Supplier Statistics documentation.

(CRS624/F)

Invoice approval conditions

… when an invoice should be approved. An invoice may be approved before goods receipt, after goods receipt, and after put-away.

(CRS624/F)

Automatic invoice approval code

… enables you to recode an invoice automatically after goods receipt.

(PPS007/E)

Supplier discount

…a general discount in percentage for purchase order lines belonging to this supplier is entered.

This discount is displayed as Discount 1 on the order line in 'Purchase Order. Open Lines' (PPS201/E).

Discount 1 is one of three possible discounts to use on the order line. Discounts 2 and 3 can be retrieved from the agreement header and agreement line.

(PPS008/B)

Limit value

…the lowest order value for a certain discount.

(PPS008/E)

Order total discount generating

…which discount percentage is to be used when the item value of the order equals or exceeds the limit. The discount is displayed as the Order total discount on the H panel of 'Purchase Order. Open' (PPS200/H). If an order total discount table exists, F14 (Order tot disc) is highlighted on the H panel, and the function key can be used to see the next discount level in the table.

(PPS009/E)

Charge type

… the type of charge.

(PPS009/E)

Limit value

… the purchase order limit from which charges are debited, or new terms of delivery become valid.

When creating or changing a purchase order, a warning will be issued if the limit is exceeded.

The charges are not added to the purchase order automatically.

(PPS009/E)

Charges

…the charge to apply when the purchase amount falls below the charge limit.

(PPS009/E)

Delivery terms

… the delivery terms for a purchase order whose total exceeds the order value limit.

(PPS010/B)

Delivery term

..the transport lead time for this supplier and delivery term.

(PPS010/B)

Warehouse

..the transport lead time for this supplier and warehouse.

(PPS010/B)

Delivery method

..the transport lead time for this supplier and delivery method.

(PPS010/B)

Place of load

… the transport lead time for this supplier and place of load.

(PPS010/E)

Goods responsibility

.. when the liability for a delivery is transferred from the supplier to the buyer. The date on which liability is transferred is defined as the delivery date.

(PPS010/E)

Transportation lead time 1

…the number of workdays needed to transport to the transport station from the supplier. Transport lead time 1 also includes time for order processing.

(PPS010/E)

Transportation lead time 2

…the number of workdays needed to transport to the final destination from the transport station.

Transport lead time 1 together with Transport lead time 2 gives the total distribution time, in workdays, from when the purchase order is sent to the supplier until the goods are received at the final destination.

(RPS080/B)

Point of time table

…the ID for the point of time table.

The point of time table ID is unique per facility, warehouse and point of time table type. This means that the same ID can be used for different settings of these parameters.

(RPS080/B)

Point of time type

… the type of times contained in the table.

20 = Points of time used for supplier calendar.

Item settings parameters

Program ID/Panel

Field

The field indicates...

(MMS001/E)

Item number, Name and Description

… ID's for the item. These are used on purchase order documents if no supplier identifications are entered on the E panel in 'Supplier. Connect Item' (PPS040).

(MMS001/E)

Status

..the item status. It must be 20 or above (but not 80, 90, or 99) to use the item for purchase orders.

(MMS001/E)

Item type, Item group, Product group and Procurement group

…user-defined fields for selecting and following up in the statistics. Often item group and product group are used for following up in manufacturing while sales and procurement groups are used for purchase statistics.

The groups can also be used in forecasting and agreements.

Custom fields can be associated with the item group using related option 11 (conn u-d fld gr) in 'Item Group. Open' (CRS025/B).

(MMS001/E)

Inventory accounting

…whether the item should be inventory accounted and the inventory accounting method specifies what method to use for the inventory accounting. The valid inventory accounting method alternatives for purchased items are:

0 = Zero cost

1 = Standard cost

2 = Average cost

4 = Actual cost.

This field is also defined for the facility/item combination in (MMS003).

(MMS001/E)

Basic U/M

…the unit of measure in which the balance information of the item is stored. If alternate units of measure are allowed, a 1 or 2 must be entered in the 'Alt U/M in use' field.

(MMS001/E)

Make/buy code

… whether the item is a manufactured item (1=) or a purchased item (=2).

The values will control some mandatory fields in the item programs.

(MMS001/E)

Lot control method and Lot number method

… lot controlled items and are described in the Lot & Allocation Control documentation.

(MMS001/F)

Purchase order U/M

… the unit of measure (U/M) in which the quantity on the purchase order is expressed.

(MMS001/F)

Purchase price U/M

…the purchase price unit, U/M, which is the U/M in which the purchase price has been expressed.

(MMS001/F)

External instruction

… reference code for a standard text connected to the item. The text is entered in 'External Instruction. Open' (MMS135) and printed on external purchase order documents

(MMS001/F)

Internal instruction

… are printed on the goods receipt document (the document name is PPS307), if entered in 'Internal Instruction. Open' (MMS145).

(MMS001/F)

Goods receiving method

… the method that controls processing of the goods receiving flow.

It is defaulted on the purchase order line if entered here. The method can also be collected from 'Supplier. Connect Item' (PPS040) or 'Purchase Order Type. Open' (PPS095).

(MMS001/F)

Gross weight, Net weight and Volume

…item weight and volume per basic U/M.

This can be used to specify the current load on the stock locations. The information is displayed on the F panel in 'Stock Location. Open' (MMS010).

(MMS001/H)

Currency

… what currency the purchase price is expressed in.

(MMS001/H)

Supplier number

…the supplier number. This number is mainly for informational purposes, but is also used as a default proposal during entry in (PPS180) and (PPS170).

(MMS002/E)

Planner

… the person responsible for item acquisition for each warehouse. Planned purchase orders can be sorted on planners.

(MMS002/E)

Acquisition code

…how acquisitions are to be done in case of requirements. The acquisition code is 2 for purchased items

(MMS002/E)

Planning method

… how the item is planned: manually, MRP-planned, reorder point planned etc.

(MMS002/E)

Supply lead time

.. the supply lead time in days.

The supply lead time can be updated manually on the E panel or from 'Supplier. Connect Item' (PPS040) for the main supplier.

(MMS002/E)

Lead time

.. the sum of administration, transmission, supply, transportation, and inspection time.

Not all of these have to be used; often only the supply lead time is used to identify the total lead time for the item. The supply lead time can be updated manually on the E panel above or from 'Supplier. Connect Item' (PPS040) for the main supplier.

(MMS002/E)

Planning policy

…a number of settings for how planned orders action and warning messages are to be generated.

(MMS002/E)

Order type

…the order type used for automatically created orders (from a MRP run, for example) is entered.

(MMS002/E)

Supplier number

… the main supplier for the item.

(MMS002/E)

Multiple supply

… which kind of supply is to be connected to the item.

If multiple supplies are allowed, other suppliers can be used but the supplier entered in the supplier field will be defaulted. The item can also be connected to several suppliers according to a percentage entered in 'Item. Define Sourcing Rules' (RPS090), the Share field.

(MMS002/F)

Order multiple

… the minimum acquisition quantity in the basic unit of measurement (U/M).

(MMS002/G)

Location

… the normal stock location for the item that is proposed upon receipt, issue.

(MMS002/G)

Storage method

… whether this location is the only valid location for the item, or if it can multiple-stored.

(MMS002/G)

Inspection location

… a default value, if quality inspection is done, for the location used after the goods receipt. If no location is entered here, the location entered in 'Goods Receiving Method' (PPS345), parameter 050, is used.

(MMS002/G)

Buyer

… the person normally responsible for purchase of this item.

The field can be used as a selection criterion in 'Planned Purchase Order. Open' (PPS170) and 'Purchase Order. Open' (PPS200).

(MMS002/G)

Distr/sup cal

… how a check of the distribution and supplier delivery calendars is to be performed when an order's delivery date is determined.

This field checks if a point of time table in 'Point of Time Table. Open' (RPS080) is used

(MMS002/G)

History storage method

…if and how stock transactions are stored in the stock transaction history file.

If no transactions are created in 'Stock Transaction. Display History' (MWS070) after a goods receipt, for example, this parameter could have been turned off.

(MMS003/E)

Inventory accounting

…whether the item should be inventory accounted and the inventory accounting method specifies what method to use for the inventory accounting. The valid inventory accounting method alternatives for purchased items are:

0 = Zero cost

1 = Standard cost

2 = Average cost

4 = Actual cost.

(MMS003/F)

Costing model - purchasing

…the ID of the costing model used for each item.

The costing model is displayed in 'Purchase Costing Model. Open' (PPS285). Purchase costing is described in the Purchase Costing documentation.

If no purchase costing model is entered in this field, the model is defaulted from 'Settings – Purchasing' (CRS780).

Supplier/item settings parameters

Program ID/Panel

Field

The field indicates...

(PPS040/B)

Status

… the status of an item/supplier combination.

(PPS040/E)

Record type

… whether the item is a normal item (=1), a subcontracted item (=2) or a repair item (=3).

(PPS040/E)

Suppl item no, Suppl item name and Suppl item desc

If entered on this panel, the supplier fields (Suppl item no, Suppl item name and Suppl item desc) are printed on the purchase documents.

If parameter 121 in 'Purchase Order Type. Open' (PPS095) is set to 4, the item description will not be printed.

(PPS040/E)

Lead time for replenishment delivery

… the lead time in days for a replacement delivery.

(PPS040/E)

Supply lead time

… the normal lead time for a delivery. The lead time is entered in days. Parameter 33 in 'Settings – Purchasing' (CRS780) determines whether a week is comprised of five or seven days. The lead time can also be entered in 'Item. Connect Warehouse' (MMS002).

(PPS040/E)

Lead time

… the total lead time for the product, including time for administration, transmission, supply, transportation, and inspection.

(PPS040/E)

Order type

…the default when placing a purchase order.

If values are entered both on the supplier/item combination and in the supplier or item files separately, the system will always select values from 'Supplier. Connect Item' (PPS040) first.

(PPS040/E)

Goods receiving method

…the method that controls processing of the goods receiving flow.

The proposal comes from one of three sources according to the priority ranking:

1 Combination of item and supplier

2 Item

3 Purchase order type.

(PPS040/E)

Order multiple

… the minimum acquisition quantity in the basic unit of measure (U/M).

(PPS040/F)

External safety stock

….the minimum safety stock level the supplier should have and is used for information purposes only.

(PPS040/F)

Country of origin

… is used for trade statistics and the countries are entered in 'Country. Open' (CRS045).

(PPS040/F)

Packaging

… a packing identity defined in 'Packaging. Open' (MMS050).

The free-format text connected to the package is printed on the purchase order and acts as an external packaging description to the supplier.

(PPS040/F)

Valid from - to

…the date from which an agreement takes effect.

(PPS040/F)

Purchase price

…the purchase price.

Purchase prices can also be entered here together with 'Valid from' and 'to' dates.

(PPS040/F)

Currency

… the currency for the entered purchase price.

(PPS040/F)

Exchange rate type

… the exchange rate type for the entered purchase price.

(PPS040/F)

Media profile

…how the document will be sent to a partner.

(PPS040/F)

Current full cost

… an actual cost calculated from 'Purchase Costing. Calculate' (PPS290).

(PPS040/F)

Setup price 1 and 2

… the setup price. It is specified on the purchase agreement line and can be copied to the purchase order line or entered/changed manually on the purchase order line.

(PPS040/G)

The G panel

The G panel is used for quality inspection, if quality inspection tasks and plans are used.

The fields are described in the extended Quality Inspection documentation.

(PPS040/H)

The H panel

The H panel is used for user-defined fields. The settings for these fields are defined in 'User-Defined Fields. Open' (CMS082).

(PPS041/B)

Manufacturer

…the company or organization that manufactured the item, regardless of who delivered it.

(PPS041/B)

Manufacturer priority

…the manufacturer's priority in comparison to other manufacturers.

(PPS041/B)

Manufacturer approved

…if the manufacturer is approved.

Russia-specific master data

The following functionality must be set up for divisions configured with country version RU in 'Company. Connect Division' (MNS100/L).

Once the functionality has been set up, the Russia-specific master data is stored in the corresponding Russia master tables.

Follow these steps:

  1. Start 'Supplier. Open' (CRS620) and include panel X (Country specific) in the sequence.
  2. Search for the specific supplier and use the option Change.
  3. Navigate to 'Supplier RU. Open' (CRRU03). Specify values in the required fields and click Next.
  4. The options Change, Delete, and Display can be used. The Delete option deletes both the supplier master and Russia-specific master data for supplier.
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