What is the primary function of the Supplier Change Event business process?

The primary function of the Supplier Change Event business process is to formally approve changes to an existing supplier. This process is crucial for maintaining accurate and up-to-date information regarding suppliers in the procurement system. When a supplier undergoes any changes—such as address updates, changes in ownership, or modifications to bank account details—the Supplier Change Event ensures that these changes are systematically reviewed and approved.

This formal approval process is essential to mitigate risks associated with supplier management, such as fraud, compliance issues, or inaccuracies in procurement operations. By ensuring that all modifications are documented and verified before being implemented within the system, organizations can maintain better control over their supplier relationships and the integrity of their procurement data.

In this context, options related to creating new supplier accounts, approving new suppliers, or monitoring payment history do not align with the specific purpose of the Supplier Change Event, which centers on managing changes rather than initiating new supplier relationships or reviewing financial transactions.