Vendor Category

Module Guide: Vendor Category

Module Location

Purchasing > Supplier > Vendor Category

Module Objective

The Vendor Category module is a tool for managing master data that has two primary functions:

1. Classification: To create and manage a hierarchical structure for grouping suppliers/vendors by their type (e.g., Raw Material Vendors, Service Vendors, Expedition Vendors).

2. Accounting Integration: To link each vendor category to specific accounts in the General Ledger. This setup automates the journaling process for every transaction related to suppliers within that category.

1. Main View (Category Structure)

The main page of this module displays all the vendor categories that have been created in a tree view format.

View Explanation

• Hierarchical Structure: This view shows the grouping of suppliers, such as Vend-BB - Raw Material Vendors, Vend-BS - Spare Part Vendors, and Vend-JS - Service Vendors.

• Navigation: To edit a category, double-click on the category name. To create a new category, it is usually done by right-clicking on its parent and selecting 'Add'.

2. Steps to Manage a Vendor Category

When you create a new category or edit an existing one, you will see a detail form.

Step 1: Fill in Basic Category Information

At the top of the form, fill in the basic details of the category:

• Category Code: The unique code for the category.

• Category Name: The descriptive name for the category.
  

Step 2: Set Up Account Linking (GL Linking - Important!)

This section is a crucial accounting setup for automating purchasing journals. You must define the default General Ledger account for each type of payable transaction, per currency.

• Account for Tracking Payables: Define the main Account Payable account for this category.

• Account for Tracking Suppliers Deposit: Define the account for recording deposits given to vendors.

• Account for Tracking Suppliers Down Payment: Define the account for recording Purchase Down Payments to vendors.

Step 3: Save the Settings

Use the buttons in the bottom-left section to save your changes:

• Update: Saves the changes for this category setting only.

• Update ALL MASTER VENDOR: Saves the changes and applies them to all existing vendor data under this category.

• Delete: To delete the category.

Tips & Important Notes

• The Vendor Linked Accounts settings must be done very carefully and in coordination with the Accounting team to ensure all purchase transactions are posted to the correct General Ledger accounts.

• A good category structure will greatly simplify the process of reporting and analyzing company expenditures.

• Use the Update ALL MASTER VENDOR button with caution, as it will change the accounting links for all existing vendors within that category.