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
So the questions I have are these.
- 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?
- From a financial perspective, what are the other challenges that I might have to address?