Jira Code : MAMS-103
Proposal Summary
The proposal is to implement a vendor credit limit notification within the purchase order process. It will help to alert users when creating or updating purchase orders if the vendor’s credit limit has been exceeded for the current month.
Requirement
The client would like to notify the purchaser when the vendor credit limit has been exceeded while creating or updating a purchase order.
This system needs to allow the user to set a credit limit for each vendor and receive a notification if the order amount exceeds the vendor’s credit limit. The vendor limit will be set for each month.
The notification will alert the purchaser that the order amount exceeds the vendor’s credit limit, giving them the opportunity to review the order and either reduce the order amount or seek alternative payment options.
Deliverables
We propose implementing a vendor credit limit notification system in NetSuite for purchase orders.
The purpose of this system is to alert users when creating or updating purchase orders if the vendor’s credit limit has been exceeded.
We will create a custom record named “Vendor Credit Limit Info” that will store the vendor credit limit information based on location.
We can see this custom record in the vendor record and it will be possible to have multiple vendor credit limits for a specific vendor in different locations.
Alert Messages
When saving a Purchase Order form by creating a new one or editing an existing one, the script will use the Vendor Credit Limit information to determine whether the vendor’s credit limit has been exceeded in the Location in the current month.
If the credit limit has been exceeded, the script will notify the user with the following alert message in the Purchase order form and will not allow them to save the record.
Exporting the Vendor Credit Limit Info
We will setup a search for displaying the Vendor credit limit information where we can see the below details.
- From Date
- To Date
- Vendor Name
- Location Name
- 31 Days Purchase Limit
- Purchase Amount
- Balance Purchase Amount
- From Date: the start date from where the purchase limit is applicable.
- To Date : the final day where the purchase limit is applicable.
- 31 Days Purchase Limit : the maximum amount of money that a person or organization can spend on goods or services from a particular vendor or supplier in a month. The purchase limit needs to be added by the administrator of the NetSuite account.
- Purchase Amount: total amount of money spent on a set of purchase orders created for a specific vendor in a specific location in the current month. This will be updated in the custom field automatically twice a day
- Balance Purchase Amount: 31 Days Purchase Limit – Purchase Amount
Assumptions
- We will not apply any form-based restrictions in the script.
- In the initial stage, the custom record will be visible to all employees having an Administrator role.
- The “Vendor Credit Limit Info” Custom record will be created before creating a Purchase order for the same Vendor.
- The alert message will not be displayed for the vendors having no associated “Vendor Credit Limit Info” record.
- The alert will only be displayed while saving the purchase order record.
- If the location field is not selected in the purchase order, the validation will not be worked.
- We will be considering the total amount in the opened bills which is approved for calculating the Vendor credit amount.
- Vendor limit has been set for each month and the total purchase amount purchased on that month will only be considered to check whether the vendor limit has been reached or not.
- We need to do a CSV import for setting up the vendor limit per month.
- We will not consider the Vendor prepayment or vendor bill credit records for calculating the purchase amount while creating a new purchase order.
- The custom record “Vendor Credit Limit” will be created by the Administrator at the start of each month and set the purchase limit. We will update the Purchase Amount and the Balance Amount in a scheduled basis.
- We will consider the approved bills for calculating the Purchase amount.
Risks
- There will not any financial impact or will not be available the data in any standard reports
- We will not restrict this customization to a particular purchase order form.
- The alert notification will be available for all roles.
- Only Administrator roles can enter the custom record “Vendor Credit Limit Info” entries.
- We will implement a search for exporting the details on the vendor credit limit record, but the search will not contain the column for the total purchase order amount of the vendor.
- A custom field will be implemented on custom records for displaying the current purchase amount for that vendor in that location, and this custom field will not be available in searches.
- Customization will be working in edit and create a mode of the record. Suppose a new line is added to the purchase order while editing the record, and the new line addition will exceed the vendor limit; we will restrict the save of the record.
- We will not create the custom record instead we just update the purchase amount and balance amount in the record using the script for each month
- NetSuite administrator will be responsible for creating a custom record every month and any failure to create a custom record on each month, the restrictions will not come into effect