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Creating a Supplier Resource for an On-site Contractor

Supplier resource prices are used to identify the supplier’s price for each supplied trade. This is the price at which the on-site contractor’s work is charged; it is used as the rate on the timecards created to record the contractor’s work.
The on-site contractors (employees) who are eligible to use the price must be identified on the supplier resource price. Only on-site contractor employees who are employed by the supplier are available for selection.
Use the new supplier resource dialog to define both the supplier resource and the supplier’s current price. After the supplier resource has been created you can add more prices. See Adding Prices to a Supplier Resource.
Note: If you are using a request for quotation (RFQ) process, supplier resource prices will be created at the time the RFQ is awarded. See Awarding RFQs.

To Create a Supplier Resource

1.
Open the supplier that employs the on-site contractor.
2.
Select the Resources view.
3.
Click New. The New Supplier Resource dialog appears.
4.
Set the Purchase type to On site contractor.
5.
Browse to select a resource. In the Resource Selector dialog, click the Trades tab. Select a resource, then click OK.
6.
Enter the supplier’s references for the resource:
Setting Name
Description
Product number
The supplier’s reference number for this resource. Every supplier uses a different reference number for the item, and this number must show on the PO so that the supplier will know what item is being ordered.
Product description
The supplier’s description for this resource. The system enters your product description as the default, but you can change it here. You can enter up to 100 characters.
Use Supplier’s Description
Select this option to have the system use the description on the supplier resource as the purchase order line description (appears on printed purchase orders) when the supplier resource is set for the line.
If this option is not selected, the system uses the resource description as the purchase order line description, regardless of which supplier resource is selected.
7.
On the Price tab, in the Units of measure section, select the ordering and pricing units of measure:
Setting Name
Description
Ordering Units
The unit of measure (UOM) to use when ordering this item. Although an item can be stocked and issued in one unit of measure, the supplier might require that an order be placed using a different unit of measure.
For example, let’s say that each item is stocked on the shelves individually, but the supplier only sells the item in boxes of 12 units. In this case, the ordering UOM is “box” and the stocking UOM is “each”.
Pricing Units
The units of measure (UOM) used when pricing an order. An item can be ordered in a particular unit of measure (UOM) and priced using an alternate UOM. For example, you might order a resource by the dozen, but the supplier might price them individually (that is, “each”).
8.
In the Price section, enter:
Setting Name
Description
Price
The unit cost of the item expressed in the supplier’s unit of measure.
Discount Rate
The discount rate applied to the price. The system applies the discount rate when pricing a purchase demand or purchase order line.
Prices are often reflected as a standard or common cost for all customers. However, pricing typically differs on a customer-by-customer basis, depending on criteria such as volume of purchases, goodwill, and special deals to secure business.
Discount Applied
Select when the discount should be applied: when the resource is ordered (on the purchase order line) or when the resource is invoiced (on the invoice line).
Price is in effect from
The start date when the price is effective. Click the calendar to select the appropriate date. If appropriate, you can also select the ending date for the price.
Prices are only available for use during their effective period.
Expiry Date
The date the price expires. Click the calendar to select the appropriate date. If the price has no expiry date, leave this box blank.
Prices are only available for use during their effective period.
Reference
The reference number the supplier uses to identify this price. Each supplier resource price can have a different reference number that is separate from the supplier’s product number.
9.
Select the Details tab. Enter the following, as appropriate:
Setting Name
Description
Pack size
The number of whole units, in the ordering unit of measure, that are packaged together. An order quantity must be placed in multiples of the pack size.
For example, let’s say that each item is stocked on the shelves individually, but the supplier only sells the item in boxes of 12 units. In this case, the pack size is 12. You can only order the item in multiples of 12 (12, 24, 36, 48, and so on).
Minimum Order Quantity
The minimum quantity required to place an order with the supplier. The quantity is expressed in the supplier’s unit of measure.
When you create a purchase order line for this item, the system warns you if you are ordering less than the minimum quantity. However, if you add this item as a resource demand on a work order, the system cannot warn you if the quantity is below the minimum order amount.
Lead time
The average time it takes the supplier to deliver the item. The lead time generally covers the elapsed time between the issuance of a PO (by mail, EDI, fax, and so on) and the time the order is received. It does not include internal processing time, such as preparing the PO and putting the material away.
The system can use this lead time when calculating whether or not a warehouse item needs to be replenished. Whether or not this time is used is determined by a setting on the warehouse properties.
Preferred Supplier
When this box is checked, the system considers this to be the preferred supplier for this resource. The supplier has the “preferred supplier” designation during the effective period of this price.
Note: This option is not available for special prices.
The preferred supplier setting is used by the system in determining the default supplier and price to use for new purchase demands. The system considers four criteria when selecting a default supplier and price for a demand:
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Preferred supplier
•
Lowest price
•
Shortest lead time
•
Supplier last ordered from
The order in which these items are considered is determined by the supplier selection policies for the site or for the resource.
Replenishment Review
The replenishment rule allows you to control whether or not resources replenished with this price require a manual review before the purchase order is generated.
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Replenishment review is required: The replenishment requisition must be reviewed before a purchase order is created.
•
Replenishment review is not required: The purchase order will be automatically generated as soon as the replenishment requisition is created.
 
10.
If the ordering units of measure are different than the pricing or catalog units of measure, you can set a conversion factor. Select the Conversions tab and click Conversion Calculator. Enter the conversion factors, and click OK.
11.
Select the Charges tab.
12.
Enter any extra charges or taxes applicable to this supplier resource. Taxes and extra charges that are set up for the supplier will be automatically applied to all items on a purchase order. You only need to enter taxes or extra charges that apply to this particular resource. See Adding Extra Charges to a Supplier Resource and Creating a Supplier Resource Tax for more information.
13.
Select the Description tab. On this tab you can enter a longer description of the resource.
14.
When you are finished entering information about the resource, click OK. The new supplier resource appears in the list.
15.
When you are finished, Save and Close the Supplier window.