QM in Procurement - Part2

1.  Target QM system - It is the quality standards that the business expects from the vendor. In simple words if the business wants to have a deal with only those vendors who are ISO 9001 certified then that can be configured here.

If the vendor is certified with the same or a higher standard than the one specified, only then will the system accept goods from that vendor. In the vendor master, there is a field called 'Actual QM System' where the vendor’s certification is maintained. The system checks both the 'Target QM System' in the material master and the 'Actual QM System' in the vendor master. If they match, only then can the subsequent processes be carried out. Else the system throws an error as shown below

2. Skip inspection : If the vendor has consistently provided good quality goods, the business may choose to relax or remove certain quality checks or certificate requirements for that vendor. This can be achieved by choosing 'No inspection' under inspection control.

Then the after GR of this product by this vendor, the stock will move to unrestricted use despite maintaining the required QM setup.

3 . Certificate confirmation: We can configure what certificate has to be attached by the vendor when the goods are supplied in the material master as shown below

While performing Goods Receipt (GR), the system will display a warning message if the certificate attachment has not been confirmed.

To confirm whether the certificate is attached, in the same transaction there is a field 'Cert. enclosed?' under 'Purchase Order Data' . When it is confirmed then the material document can be posted.

4. Invoice block : When the stock is received from the vendor, then the stock under goes quality inspection to check the quality of the goods supplied. If the quality is compromised then the system allows the business to block the payment to the vendor by blocking invoice. And the invoice can be blocked only after inspecting the goods