Question

One Time Supplier for Credit Card Purchases

  • 14 September 2021
  • 2 replies
  • 39 views

Userlevel 7
Badge +11

Our Procurement team has a direction to limit supplier records in IFS, hence they keep expiring the ones we do small purchases through. But we need to make purchases through those small suppliers. We discussed a possible solution i.e. record those suppliers as one time suppliers in IFS (then the need to expire them goes away) make the purchase through credit card, raise a PO in IFS since the goods receipt is needed, close the PO and match with a zero valued invoice. Finance assured that they can take care of this if we come up with some sort of modification, maybe in the PO line to distinguish it’s a credit card purchase at the year end. 

I read the below useful thread where there are good inputs from Finance experts @Shehan Almeida @Eranda, still wanted to create a new thread with some questions. 

 

 

So the questions I have are these. 

 

  1. Even though the system defines them as One time Supplier in my case, we plan to make frequent purchases. I assume this might not be a problem keeping in mind that we are not concerned about the invoicing part here?
  2. From a financial perspective, what are the other challenges that I might have to address?

2 replies

Userlevel 7
Badge +13

Hi Enzo,

 

With the available information it seems like that you are going to raise POs and do the invoicing for zero value. 

 

If that is the case it might have impact on the financials as these invoices might create variance postings or adjust the inventory value depending on the type of parts used in the POs. You might have to test couple of scenarios and verify.

 

Shehan Almeida. 

 

 

 

Userlevel 7
Badge +11

Thanks @Shehan Almeida I will definitely test the areas you mentioned. 

Let’s see if other Finance experts also have anything to add here, maybe another IFS Customer might have implemented the same thing.  

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