Supplier Explained

Spend Authorized Vs Prospective Supplier

Suppliers that participate in sourcing negotiations and qualifications but are not yet allowed to participate in procurement transactions involving financial spend, are known as prospective suppliers. When a prospective supplier is identified for a procurement need, a request is raised to promote the supplier to spend authorized.

A spend authorized request for a supplier can be created in one of the following ways:

• User requests the supplier to be promoted to spend authorized manually on the supplier record by using the promote to spend authorized button from the Edit Supplier page.
• Initial creation of supplier with the business relationship of spend authorized. The supplier must first be approved through the supplier registration process before the request for spend authorization is sent for approval.
• Negotiation is awarded to a prospective supplier, a spend authorization request is automatically created.

Approvers can approve, reject, or reassign the spend authorization requests. Rejected requests can be resubmitted for approval.

Supplier Model

A supplier is modeled as a global entity, meaning it is not created within a business unit or any other organizational context. A procurement business unit establishes a relationship with a supplier through the creation of a site which maintains internal controls for how procure to pay transactions are executed with the supplier.

Supplier Registration Process

Suppliers can potentially enter into a business relationship with the buying organization through:

• External supplier registrations
• Internal supplier registrations
• Internal supplier registration allows employees to request new suppliers through sourcing, suppliers work area, and through Self Service Procurement.

Supplier Registration Flow

1. Registration URL - The registration URL for each business relationship type can be found on the Configure Procurement Business Function page in the Prospective Supplier Registration and Spend Authorized Supplier Registration URL fields.

2. The buying organization receives a registration request, where it goes through a collaborative review process. The Approval Management Service (AMX) facilitates the approval routing of the registration. Registration approval rules are maintained in the following setup tasks:

• Manage Supplier Registration Approvals
• Manage Internal Supplier Registration Approvals.

3. The default approvers for spend authorized suppliers are defined in the procurement agents table in the Manage Suppliers function for each specific Procurement BU.

Approved Request : Automatically starts a process to create a supplier record from the registration. If user accounts were requested for contacts on the registration, then user provisioning requests are sent to Oracle Identify Management for processing. If a prospective supplier is approved, then that supplier is available for transactions on sourcing and qualifications. If a spend authorized supplier is approved, then a spend authorization approval request is raised.

The registration document contains the following:

• Organization Details: Captures identifying information about the company as well as the name and e-mail of the person submitting the registration.
• Contacts: Captures the contact details for those individuals that would be involved in supporting the customer relationship.
• Contact User Account: Captures user account information for the contact.
• Addresses: Captures the supplier addresses and the business functions performed at that address.
• Business Classifications: Captures the certification details of any applicable supplier diversity classifications (for example, minority owned, small business, and so on).
• Bank Accounts: Captures the bank account details where the company would like to receive payments.
• Products and Services: Captures the details of the types of products and services supplied by the company.
• Questionnaire: Captures responses to additional registration questions.

Supplier Registration approval 

• Manage Supplier Registration Approvals
• Manage Internal Supplier Registration Approvals

Viewing the Questionnaire

When suppliers fill out a registration request form, the registration questionnaire is available from the Questionnaire train stop. This train stop is visible when you enable the Qualification Questionnaire in the Configure Supplier Registration and Profile Change Request task in Fusion Setup and Maintenance, and there is an active rule set available for the procurement BU or if there is an active global rule set.