Supplier Group

Overview

Below is a business-focused explanation of the Supplier Group document type, written for practical use in Dafater.

Supplier Group – Business Overview

What Supplier Group Is Used For

Supplier Group is used to categorize and organize suppliers based on shared business characteristics. It helps businesses structure their supplier base into meaningful groups such as raw material vendors, service providers, local suppliers, international suppliers, or strategic partners.

By grouping suppliers, businesses can apply consistent purchasing rules, reporting, and decision-making across similar suppliers, rather than managing each supplier individually.

Prerequisites and Setup Requirements

Before using Supplier Group, the business should: - Define how suppliers are classified from a business perspective (for example, by industry, supplier type, geography, or risk level). - Agree on standard group names that align with procurement, finance, and compliance needs. - Ensure internal stakeholders (procurement, finance, operations) share a common understanding of supplier categories.

Supplier Group is usually set up early, before creating or onboarding suppliers in Dafater.

Typical Workflow and Business Process Fit

Define Supplier Groups
The business creates Supplier Group records that reflect how suppliers should be categorized.
Assign Suppliers to Groups
When a new supplier is created, it is assigned to the appropriate Supplier Group.
Use Groups in Daily Operations
- Purchasing teams filter or analyze suppliers by group.
- Finance teams review spend and payables by supplier category.
- Management uses group-based reports for supplier performance and risk analysis.
Review and Update
As the business evolves, Supplier Groups may be reviewed and refined to reflect new sourcing strategies or supplier relationships.

Key Business Scenarios Where Supplier Group Is Essential

Procurement Strategy: Differentiating strategic suppliers from regular vendors to apply special terms or approvals.
Spend Analysis: Understanding how much is spent on raw materials versus services or outsourced work.
Supplier Risk Management: Grouping high-risk or critical suppliers for closer monitoring.
Policy Enforcement: Applying consistent purchasing or payment practices across similar suppliers.
Business Growth: Supporting expansion into new markets by separating local and international suppliers.

Important Considerations for Users

Supplier Groups should be simple, clear, and aligned with real business needs.
Avoid creating too many groups, as this reduces clarity and usability.
Group names should be understandable across departments, not just procurement.
Changes to Supplier Groups can affect reporting and analysis, so updates should be made thoughtfully.
Consistent use of Supplier Group improves data quality and decision-making over time.

In summary, Supplier Group is a foundational setup tool in Dafater that helps businesses organize suppliers, standardize processes, and gain better visibility into supplier-related activities.

Basic Information

Module: Setup
Document Type: Setup

Fields

Field Name	Label	Type	Required	Options	Description
suppliergroupname	Supplier Group Name	Data	✓	-	Name identifying this supplier classification.
parentsuppliergroup	Parent Supplier Group	Link		Supplier Group	Parent group for hierarchical supplier categorization.
is_group	Is Group	Check		-	Indicates whether this record represents a grouping node.
payment_terms	Default Payment Terms Template	Link		Payment Terms Template	Default payment terms applied to suppliers in this group.
accounts	Accounts	Table		Party Account	Company-wise payable accounts linked to this supplier group.
lft	lft	Int		-	Left boundary value for hierarchical tree management.
rgt	rgt	Int		-	Right boundary value for hierarchical tree management.
old_parent	Old Parent	Link		Supplier Group	Previous parent group before hierarchy change.

Child Tables

Accounts (Party Account)

Field Name	Label	Type	Required	Options	Description
company	Company	Link	✓	Company	Company this party account belongs to.
account	Default Account	Link		Account	Default ledger account for party transactions.
advance_account	Advance Account	Link		Account	Ledger account used for recording advances.

Permissions

Role	Read	Write	Create	Delete
Purchase User	✓
Purchase Manager	✓
Purchase Master Manager	✓	✓	✓	✓
Accounts User	✓

DocType	Relationship	Module
Buying Settings	Linked from	Buying
Import Supplier Invoice	Linked from	Regional
Pricing Rule	Linked from	Accounts
Purchase Invoice	Linked from	Accounts
Supplier	Linked from	Buying
Tax Rule	Linked from	Accounts
Payment Terms Template	Links to	Accounts
Supplier Group	Links to	Setup