What mechanism is used to determine the validity of a source of supply when a purchase requisition is created?

The mechanism for determining the validity of a source of supply when creating a purchase requisition is through source list verification. In SAP S/4HANA, the source list serves as a tool that provides a structured way to manage and control the sources from which materials can be procured. When a purchase requisition is generated, the system checks this source list to identify valid suppliers and conditions that are acceptable for the specific material and procurement scenario.

Using the source list, the system ensures that procurement activities align with predefined agreements, preferred vendors, and any restrictions that might be in place regarding sourcing. This verification process helps maintain compliance and optimizes sourcing decisions by ensuring that only approved and valid sources are considered, thereby enhancing procurement efficiency and effectiveness.

While vendor scorecard evaluation, internal audit checks, and supplier feedback loops can all contribute to the overall supplier management process, they do not directly serve the specific function of validating sources in the context of a purchase requisition.