Approved Supplier List (Error: Item is restricted and the supplier is not an approved supplier for this item) in Oracle APPS r12

Purpose: This post will help you understand and use the concept of “Approved Supplier List” (ASL). Approved supplier list specifies the valid combination of Item and supplier i.e. from which supplier the organization can make purchase for the item.

Now, we will see how to use “Approved Supplier List” in Oracle application.

·         First we have to check the “Use Approved Supplier” flag.

·         Navigate to Purchasing Super User -> Oracle Purchasing -> Items -> Master Items

·         Create an Item and check the “User Approved Supplier” in “Purchasing” tab.

·         Now, we will create purchase order for this item. Navigate to Purchasing Super User -> Oracle Purchasing -> Purchase Orders -> Purchase Orders.

·         Enter the order on the screen and click on “Approve” button.

·         You will get the error message: “Item is restricted and the supplier is not an approved supplier for this item”.  This is because you had checked “Use Approved Supplier” for the item and this supplier does not exist in the Approved supplier list.

·         Now we will add the supplier in the “Approved Supplier List” so that order can be awarded to the supplier.

·          Navigate to Purchasing Super User -> Oracle Purchasing -> Supply Base -> Approved Supplier List.

·         Enter the details as mentioned below in the image and save record.

o   Type                :  Item (for single item)

:  Commodity (for item category)

o   Item                 :  Item code

o   Business          :  Direct

o   Supplier           :  Name of the supplier

o   Status              :  Approved

o   Global (in record details tab) :  Yes (for all operating units)

·         Now, we will again try to approve the order. This time system will allow submitting the order. Navigate to Purchasing Super User -> Oracle Purchasing -> Purchase Orders -> Purchase Orders.

·         You can also define a custom “Supplier Status”. Navigate to Purchasing Super User -> Oracle Purchasing -> Supply Base -> Supply Statuses.

·         Enter the Status name, description and change the business rules as per your requirement.