Evaluate a vendor and put a vendor on hold

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When you're purchasing items from a vendor, they might ask you to evaluate them.

You can use the Vendor evaluation criterion page to create a group for similar or related vendor rating criteria.

To create a new Vendor evaluation criterion group, follow these steps.

1. Open Procurement and sourcing > Setup > Vendors > Vendor evaluation criterion groups.
2. Select New to create a new record.
3. Enter a unique ID in the Name field.
4. Enter a brief description in the Description field.
5. Select Close when you're done.

To create a new Vendor evaluation criterion, follow these steps.

1. Open Procurement and sourcing > Setup > Vendors > Vendor evaluation criterion.
2. Select New to create a new record.
3. Enter a unique ID in the Name field.
4. Enter a brief description in the Description field.
5. Select a group in the Vendor evaluation criterion group field.
6. Select Close when you're done.

To define Vendor evaluation criterion groups for a procurement category, follow these steps.

1. Open Procurement and sourcing > Consignment > Procurement categories.
2. Select the node that you want in the procurement category hierarchy on the left to add vendor evaluation criterion groups to, and then select the Vendor evaluation criterion groups tab.
3. Select Add.
4. On the Add vendor evaluation criterion groups page, select the checkbox next to each vendor evaluation criterion group that you want in the left grid. By default, all vendor evaluation criteria are selected in the right grid. Optionally, you can select or clear criteria from either grid.
5. Use the Select button to move the selected criteria groups or criteria to the lower grid.
6. When you're done selecting products, select OK.
7. Optionally, select the Inherited vendor evaluation criterion groups from parent category checkbox. When you select this option, the inherited groups display in the grid.

After you assign vendor evaluation criterion groups to a procurement category, you can begin to evaluate the vendors that are assigned to the selected procurement category.

To evaluate a vendor, follow these steps.

1. Open Procurement and sourcing > Procurement categories.
2. Select the node that you want in the procurement category hierarchy on the left to add product attributes to, and then select the Vendors tab.
3. Select the vendor that you want and then select Evaluation.
4. In the Rating on vendor evaluation criteria section, select a Rating option for the vendor's performance in the selected area.
5. Close the page when you're done.

As the system finishes updating the Rating field for each Vendor evaluation criteria, it also automatically updates the Average rating field.

Use the Buying legal entity, Vendor account, and Category fields on the upper portion of the page to filter and update the evaluation information for other vendors or categories.

Performance and review of purchasing is supported through procurement and accounts payable reports, which include spend analysis and vendor performance analysis.

Put a vendor on hold

Multiple tasks are associated with vendors. You can use these vendor tasks in daily transactions and periodic time intervals. Additionally, you can use them to control and verify workflow.

The hold status for a vendor determines the types of transactions with the vendor that your organization permits. For example, a vendor hold might prohibit employees from creating a purchase order for a vendor.

To place a vendor on hold in the rich client, follow these steps.

1. Go to Procurement and sourcing > Vendors > All vendors.
2. Select a vendor account.
3. On the Action Pane, select On hold.
4. On the page that displays, select an option in the Vendor hold field:
   • No - Indicates that the vendor isn't on hold, and you can complete transactions for the vendor.
   • Invoice - Indicates that you can't process new vendor invoices for the selected vendor.
   • All - Indicates that you can't process new transactions for the selected vendor.
   • Payment - Indicates that you can't process new payment journals for the selected vendor.
   • Requisition - Indicates that you can't process new purchase requisitions for the selected vendor.
   • Never - Indicates that the selected vendor is never on hold.
5. In the Vendor hold release date field, enter the date when the payment hold should end and when you should again make payments to the vendor. If you don't enter a date, the hold lasts indefinitely.
6. Optionally, turn on the Apply hold in all legal entities option to apply the hold to the vendor in all legal entities.
7. Select OK.

Enhanced Vendor Insights with Summary by Copilot

The All vendors details page features a Summary by Copilot FastTab, which provides status insights, such as vendor currency, hold status, purchase orders, invoices, and payment status. Tailored to your user profile and context in Supply Chain Management, Microsoft Copilot generates relevant summaries that highlight critical information based on your role and permissions. This feature ensures that you receive focused, prioritized insights to help you better understand and interact with your data.