How Vendor Approval Works

Once a vendor submits their registration form, it appears in the Vendor Approval tab, where an internal reviewer checks company details, documents, and bank information before marking the vendor Approved — at which point a unique Vendor Code is generated automatically.

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Detailed breakdown of the approval list columns:

• Company Name — the legal name entered during registration.
• Owner Name — the individual associated with the company.
• Registration Date — when the registration was originally submitted or completed.
• Status — currently displayed values include Approved (shown with a green tag).
• Vendor Code — a unique numeric identifier (e.g., 2300000175) automatically issued upon approval.
• Organisation Type — Manufacturer, Trader, or Service Provider.
• Company Type — Company or Firm.
• Company Website — clickable link if provided during registration.

The approval decision process, step by step:

1. A reviewer opens the Vendor Approval tab and identifies vendors pending review (not yet in the Approved group).
2. They open the vendor's full registration record to verify each of the 14 sections — Company Details, Address, Contact Person, Manufacturers/Traders, Top Customers, Certification, and Bank Details.
3. Documents (certifications, CIN proof, bank proof) are cross-checked for authenticity and completeness.
4. If everything checks out, the reviewer marks the vendor Approved, which automatically:
   • Generates a unique Vendor Code.
   • Makes the vendor eligible for assignment in future Purchase Requisitions.
   • Moves the vendor into the Approved group in the Vendor Approval list.
5. If something is missing or incorrect, the reviewer can reject the registration or request the vendor to submit a Registration Form Update Request with corrections.

Approval status types you'll encounter:

• Approved — vendor is fully active and can be assigned to purchase requisitions, RFQs, and auctions.
• Pending/Active — registration submitted, currently awaiting review.
• Rejected — registration declined, typically with an internal note on the reason.

Why the Vendor Code matters so much: Every downstream module — from Assign Vendor to Request for Quotation, Live Auction, ASN, and Gate Entry — references this Vendor Code. This makes vendor approval a mandatory gate: no vendor, however good their pricing, can participate in any procurement activity until this code exists.

A real look at approved vendors in the system: The Vendor Approval list shows examples like "High Security" (Manufacturer, Company, Vendor Code 2300000175), "VTC LOGISTICS" (Service Provider, Company, Vendor Code 2500000031), and "COOLTECH SYSTEMS" (Manufacturer, Firm, Vendor Code 2300000152) — illustrating how vendor codes and categorization vary meaningfully across different types of suppliers.

Frequently Asked Questions

How is the Vendor Code generated — is it manual or automatic? 

It's generated automatically by the system the moment a vendor's status changes to Approved, ensuring consistency and eliminating manual numbering errors.

Can a Vendor Code be reused if a vendor is later deactivated? 

No, Vendor Codes are unique identifiers meant to remain permanently associated with that specific vendor record for audit and history purposes.

What's the difference between Organisation Type and Company Type in the approval list? 

Organisation Type describes their business function (Manufacturer, Trader, Service Provider), while Company Type describes their legal structure (Company or Firm).

Can an approved vendor be moved back to a non-approved status? 

Yes, if issues are discovered post-approval (e.g., compliance concerns), an admin can update their status, though this typically requires a documented reason.

Does approval automatically add the vendor to every Sourcing List? 

No — approval only makes a vendor eligible; adding them to a specific Sourcing List for particular materials is typically a separate, deliberate step by the purchasing team.

Can Company Type be "M/S" as seen in some records, and what does that mean?

Yes — this is simply an alternate legal-structure classification some organizations use, and it's treated the same as Firm or Company for eligibility purposes.