Supplier Categories

Supplier Categories

Supplier categories help you organize suppliers into groups for better management, reporting, and applying category-specific settings. This guide explains how to set up and use supplier categories in EquiBillBook.

What are Supplier Categories?

Supplier categories allow you to group suppliers based on criteria such as:

• Supplier type (Manufacturer, Distributor, Wholesaler, Retailer)
• Business relationship (Primary, Secondary, Backup)
• Industry or sector
• Geographic location
• Product category or specialization
• Purchase volume or transaction tier

Benefits of Using Categories

• Better Organization: Easily find and manage groups of suppliers
• Improved Reporting: Generate category-wise purchase and supplier reports
• Category-specific Settings: Apply different pricing, discounts, or payment terms by category
• Vendor Management: Better manage relationships with different supplier groups
• Analysis: Analyze performance and behavior by supplier category

Creating Supplier Categories

To create a new supplier category:

1. Navigate to Settings → Purchase Settings → Supplier Groups or Supplier Categories
2. Or go to Suppliers → Settings → Supplier Groups
3. Click "Create New" or "Add Category"
4. Enter the Category Name (e.g., "Manufacturers", "Distributors", "Primary Suppliers")
5. (Optional) Enter a Description for the category
6. Click "Save"

Assigning Categories to Suppliers

You can assign categories to suppliers in several ways:

Method 1: While Creating a Supplier

• When creating a new supplier, select the category from the "Supplier Category" dropdown
• The supplier will be assigned to that category upon creation

Method 2: Editing Existing Suppliers

1. Go to Suppliers → Supplier List
2. Find and edit the supplier
3. Change the Supplier Category field
4. Save the changes

Method 3: Bulk Category Assignment

• Select multiple suppliers from the supplier list
• Use the bulk action option to change category
• Select the new category and apply to all selected suppliers

Common Category Examples

Here are some common category structures:

• By Supplier Type:
  • Manufacturers
  • Distributors
  • Wholesalers
  • Retailers
  • Service Providers
• By Relationship:
  • Primary Suppliers
  • Secondary Suppliers
  • Backup Suppliers
  • Preferred Suppliers
• By Industry:
  • Electronics
  • Textiles
  • Food & Beverages
  • Automotive
• By Product Category:
  • Raw Materials
  • Finished Goods
  • Packaging Materials
  • Office Supplies

Editing Categories

To modify an existing category:

1. Go to Settings → Purchase Settings → Supplier Groups
2. Find the category in the list
3. Click "Edit" or click on the category name
4. Update the category name or description
5. Click "Update" or "Save"

Note: Changing a category name will update it for all suppliers assigned to that category.

Deleting Categories

To delete a category:

1. Go to the Supplier Groups management page
2. Find the category to delete
3. Click "Delete"
4. Confirm the deletion

Important: Before deleting a category, ensure that:

• No suppliers are assigned to this category, or
• Suppliers are reassigned to other categories first

Using Categories in Reports

Supplier categories are useful in various reports:

• Category-wise Purchase Reports: Analyze purchase performance by supplier category
• Supplier List by Category: View suppliers grouped by category
• Supplier Analysis: Compare supplier behavior across categories
• Purchase by Category: See which categories you purchase most from

Category-specific Settings

Some systems allow you to configure category-specific settings:

• Default payment terms for the category
• Default credit limits
• Category-specific pricing or discounts
• Default tax settings

Check if your EquiBillBook version supports these features.

Best Practices

• Clear Naming: Use clear, descriptive category names
• Logical Grouping: Create categories that make business sense
• Don't Over-categorize: Avoid creating too many categories (5-10 is usually sufficient)
• Consistent Assignment: Assign all suppliers to appropriate categories
• Review Regularly: Periodically review and update category structure
• Document Purpose: Use descriptions to document the purpose of each category

Related Topics

• Creating Suppliers
• Supplier Management
• Supplier Reports
• Supplier Payment Terms