Which record must be defined before a supplier can start being utilized for purchases?

To utilize a supplier for purchases, it is essential to first define the Purchase Financials. This record encompasses important financial information about the supplier, such as payment terms, currency, and pricing agreements. Without this foundational data, the procurement process cannot adequately proceed, as it is critical for assessing financial feasibility and ensuring that all transactions align with the organization's financial policies.

Purchase Agreements typically outline the terms of procurement but would be less effective without the financial backdrop provided by Purchase Financials. Purchase Orders are specific requests for goods or services tied directly to a supplier, but they depend on having the financial records established first. Vendor Contracts may detail the terms and conditions of the relationship with the supplier, yet they too require the financial framework to be set beforehand, ensuring that both sides are agreed on the financial implications of the purchasing process.