Release Vendor In Legal Entity
A shared Vendor is invisible to a company until it is released here. This record holds everything about the vendor that is specific to one company: how and when you pay it, its tax zone and withholding tax, its currency and posting profile, who else may be paid on its behalf.
What it is for
Every vendor document of a company (purchase order, invoice, memo, payment, settlement) looks the vendor up here. Picking the vendor on an invoice fills its Vendor Group, Tax Zone, Payment Term, Payment Method, Posting Profile, Currency and Foreign Vendor flag from this record.
The rule people get wrong: the Currency is needed. The vendor lookup on invoices, memos and settlements lists only vendors whose company record has a Currency. A vendor without one does not appear there. A blocked vendor does not appear either.
Every field in plain words
General
| Field | What it means | What to put |
|---|---|---|
| Vendor | The shared vendor to release | Pick it; name, category and group fill in |
| Name, Vendor Category, Vendor Group | From the shared vendor | Read only here |
| Block | Stops the vendor being used in this company | Tick to block |
Basic Data and Person Information
Copied from the shared vendor and read only, except Middle Name, Middle Name Prefix and Last Name.
Organization Details
| Field | What it means | What to put |
|---|---|---|
| Authorization Key | A key for access control | Optional |
| Posting Profile | The posting profile used for this vendor's documents | Copied to the invoice. Leave empty to use the company default |
| Search Name, ABC Code, Classification Group, Legacy Vendor | Extra identification | Legacy Vendor is the vendor's number in the old system |
| Customer | The same party as a customer | Optional |
| Intercompany, Intercompany Order, Company, Customer | The vendor is another company of the group | Optional |
Invoicing / Payment
| Field | What it means | What to put |
|---|---|---|
| Tax Zone | The vendor's tax zone | Copied to the invoice as Vendor Tax Zone |
| Witholding Tax Group | Stored | Recorded only. The withholding comes from the grid below |
| Exception Group | The Vendor Exception Group | Recorded only |
| Vendor Account For Invoice | The vendor that bills, when another vendor delivers | Empty means this vendor. Copied onto the purchase order |
| Credit Area, Credit Rating, Credit Limit | Credit information | Recorded only for vendors |
| Payment Term | When invoices fall due | Required. Copied to invoices and memos |
| Payment Method | How the vendor is paid | Required. Copied to invoices and memos |
| Cash Discount, Override Settings | Stored | Recorded only |
Payment
Calculate Withholding Tax is stored but not read. The withholding grid below it is what counts: one line per Withholding Tax code, with Default. Every code ticked Default is deducted on each Payment to this vendor.
Purchase
| Field | What it means | What to put |
|---|---|---|
| Currency | The vendor's currency | Needed for the vendor to appear on invoices. Becomes the invoice currency |
| Pricing Group, Discount Group | Purchase pricing | Copied onto the purchase order when the vendor is picked there |
| Purchase Rebate Group | Purchase rebates | No Payables screen reads it |
| Foreign Vendor | An import vendor | Its invoices against receipts need the Inbound Shipment, and their currency and rate are locked. Cannot be changed once a purchase order exists |
| Required Attachment in a Purchase Order, Carrirer Vendor | Stored | Recorded only |
| Order Journal | The default purchase order journal | Copied onto the purchase order when the vendor is picked there |
| Cost Element Group | The cost elements this vendor brings | See Auto Cost Elements |
| Price Tolerance Group | The Price Tolerance Group | Recorded only |
| Site, Warehouse, Calendar, Delivery Term, Delivery Mode | Purchase defaults | No Payables screen reads them |
| Responsibility Central, Responsible, Purchase Organization, Purchase Group | Who buys from it | No Payables screen reads them |
Grids
| Tab | What it holds |
|---|---|
| Purchase Team | The purchase groups that may buy from it |
| Address, Contacts, Registration | As on the shared vendor. The vendor group can require registrations, and Person, Mobile, Phone or Email per address purpose |
| Portal | Portal access and the companies and items the vendor sees |
| Bank Information | The vendor's bank accounts |
| Alternative Payees | Other vendors who may be paid instead. If there are any, exactly one must be Default |
| Approved Item | Items approved for this vendor. The item lookup on purchase and invoice lines reads this list |
| Item Validation | Item Relation, Validation On, Validation Value. Recorded only |
The On Hold button opens Process Code, Reason, Release Date. Nothing reads it today.
How to configure it
- Fill Payment Term, Payment Method and Currency for every vendor.
- Tick the withholding tax codes Default that should be deducted on payments.
- Use Vendor Group to require registrations and address details.
Scenarios
- A manufacturer buys from a local supplier and pays at 30 days. Release the vendor, Payment Term 30 days, Payment Method bank transfer, Currency the company currency, the income tax withholding code ticked Default.
- An importer buys from an overseas supplier in dollars. Tick Foreign Vendor, Currency USD. Its invoices against receipts then follow the inbound shipment.
- A distributor pays a supplier's factoring company. Add the factoring company as an Alternative Payee, Default ticked.
What it is connected to
- Vendor: the shared record.
- Vendor Invoice, Payment: read this record.
- Vendor In Legal Entity: creates the vendor and this record together.
- Purchase Order in Purchasing.
If something looks wrong
- The vendor does not appear in the Vendor list of an invoice. It has no Currency here, is blocked, or is not released into this company.
- "You cannot change Foreign Vendor Checkbox, Purchase Order is already created" Foreign Vendor is fixed once ordered from.
- "Registration - Registration Authority ... of Registration Group ... is mandatory" The vendor group requires that registration. Add it on the Registration tab.
- "Line ID: ... - Mobile is mandatory." The vendor group requires mobile for that address purpose. The same for Person, Phone and Email.
- "Please mark at least one alternative payee vendor as default." Tick Default on one alternative payee.
- "Only one alternative payee vendor can be marked as default." Untick the others.