What is vendor restriction in SAP IS-AFS-MM - Materials Management?

SAP Term: vendor restriction

• Component: IS-AFS-MM

• Component Name: Materials Management

• Description: A restriction defined in the system according to which no materials are allowed to be obtained from a certain vendor during a certain time period. If the source allocation checks for restrictions, open purchase requisitions will not be assigned to the corresponding vendors in this time period.

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• Key Concepts: 
  Vendor restriction is a feature in SAP Materials Management (MM) that allows users to limit the vendors from which they can purchase goods and services. This feature helps to ensure that only approved vendors are used for procurement, and that the best prices are obtained. 
  
  How to use it: 
  Vendor restriction can be set up in the SAP system by assigning a vendor to a purchasing group. This will limit the vendors that can be used for purchasing goods and services to those assigned to the purchasing group. The purchasing group can also be used to set up different payment terms, delivery terms, and other conditions for each vendor. 
  
  Tips & Tricks: 
  When setting up vendor restriction, it is important to ensure that all relevant vendors are assigned to the purchasing group. This will ensure that all approved vendors are available for procurement. It is also important to review the payment terms, delivery terms, and other conditions for each vendor to ensure that they are in line with company policies. 
  
  Related Information: 
  For more information on vendor restriction in SAP Materials Management, please refer to the SAP Help Portal or contact your local SAP support team.