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Vendor Master Definition Vendor master data is required for creating purchasing documents. Vendor master records contain information on the vendors (external suppliers) of an enterprise. Vendor master data is integrated with finance and material management modules. Single vendor master can be used for procurement of material and services, if same is supplying various materials or services. Prerequisites Account Group is to be selected for creation of vendor master. The account group determines

The data that is relevant for the master record

Vendor Status (one-time or regular vendor)

The following account Groups for example:

0001 Vendor 0007 Plants 0099 One-time vendors

Procedure Data in the vendor master record is subdivided into three categories.

a) General data: This data is valid for the whole client. This includes the vendor's address and bank details etc.

b) Company Code Data: Company code data only applies to one company code. This data is only relevant to Financial Accounting, and includes:

i. Account management data

Edit a master record; we must specify the vendor number and company code to access the screens containing company code data.

c) Purchasing organization data The data for one vendor can differ for each purchasing organization. This data is only relevant to Purchasing, and includes:

i. Purchasing data

ii. Partner functions

Vendor Master Data:

Vendor master records contain information on the vendors (external suppliers) of an enterprise.

Data in the vendor master record is subdivided into three categories: General data: This includes the vendor's address and bank details, for example. This

data is valid for the whole client.

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Purchasing data: This includes the purchase order currency, incoterms, and the vendor's tax data. This data is maintained for each purchasing organization. You can also maintain different data on a plant-dependent basis or for vendor sub-ranges.

Accounting data: This comprises data such as the number of the reconciliation account and the payment methods for automatic payment transactions. This is maintained at company code level.

You can block a vendor master record, for example, if the quality of the vendor's products is poor.

You can block a vendor for an individual material via the source list.

Purchasing Data – Vendor Master

Control parameters for purchasing operations are defined at the purchasing organization level.

Accounting data in the vendor master record is defined at the company code level. Data that applies to a purchasing organization can be maintained differently for a specific

plant. Such data includes the Automatic PO allowed indicator.

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Vendor Master – Account Grouping

Account Group is to be selected for creation of vendor master The account group determines

The data that is relevant for the master record A number range from which numbers are selected for the master records Field Selection Vendor Status (one-time or regular vendor)

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Partner Roles - Vendor Master

The vendor can have various functions in its interaction with your company. During the procurement transaction the vendor is the order recipient, then the supplier of goods, the invoicing party, And finally, the payee.

By maintaining partner roles in the vendor master record, you can distribute one or more of these roles among different vendor master records.

One Time Vendor

A term for a collective vendor master record used for processing transactions with vendors with whom you do not regularly do business.

If an RFQ or a PO is sent to a one-time vendor, you must enter the vendor data manually.

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Vendor Master can be created in two ways: 1st method:

All Purchase related data can be created with transaction code MK01. With this transaction code, user cannot create data relevant to Finance.

All finance related data can be created with transaction code FK01. If this method is adopted in the Company, there should be regular communication between Purchase and Finance departments on all the changes made in Vendor Master.

2nd method:

Complete data, Purchase related data and finance related data can be created centrally with transaction code XK01.

In this manual process of creating Vendor Master centrally is described. TRANSACTIONAL STEPS

No. STEPS

TRANS. CODE

INPUT DATA OUTPUT DATA / RESULT

1 Create Vendor Master

XK01 i) Company Code ii) Purchase Organization iii) Account Group iv) Name v) Address vi) Communication details vii) Reconciliation Account

(mandatory) viii) Payment Terms ix) Order Currency x) Other control data in

purchasing

Vendor Master is created with vendor code “yyyyyy”

2 Display Vendor

XK03 i) Vendor Code ii) Purchase Organization iii) Company Code iv) Select the views to be

displayed

All Data is displayed for Vendor Code “yyyyyy”

3 Change Vendor

XK02 i) Vendor Code ii) Purchase Organization iii) Company Code

Select the views to be changed

make the necessary changes

SAP Demo: 1. Access Transaction by Via Menus Logistics > Materials management > Purchasing > Master data > Vendor >

Central > Create

Via Transaction Code XK01 2. On screen “Create Vendor: Initial Screen”, enter information in the fields as specified in the below table:

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(Note: On above table, in column “R/O/C”; “R” = Required, “O” = Optional, “C” = Conditional) 3. Click on the Enter button.

4. On screen “Create Vendor: Address Screen”, enter information in the fields as specified in the table below:

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(Note: On above table, in column “R/O/C”; “R” = Required, “O” = Optional, “C” = Conditional)

5. Click on the Enter button.

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6. On screen “Create Vendor: Control”, enter information in the optional fields as applicable in the table below:

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(Note: On above table, in column “R/O/C”; “R” = Required, “O” = Optional, “C” = Conditional)

7. Click on the Enter button

8. On screen “Create Vendor: Payment Transactions”, enter the vendor’s banking information if applicable:

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9. Click on the Enter button.

10. On screen “Create Vendor: Contact Persons”, enter information in the fields as specified in the below table:

(Note: On above table, in column “R/O/C”; “R” = Required, “O” = Optional, “C” = Conditional)

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11. Click on the Enter button.

12. On screen “Create Vendor: Accounting Information Accounting”, enter information in the fields as specified in the below table:

(Note: On above table, in column “R/O/C”; “R” = Required, “O” = Optional, “C” = Conditional)

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13. Click on the Enter button.

14. On screen “Create Vendor: Payment Transactions Accounting”, enter information in the optional fields as applicable:

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(Note: On above table, in column “R/O/C”; “R” = Required, “O” = Optional, “C” = Conditional)

15. Click on the Enter button.

16. On screen “Create Vendor: Correspondence Accounting:, enter information in the fields as specified in the table below.

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(Note: On above table, in column “R/O/C”; “R” = Required, “O” = Optional, “C” = Conditional)

17. Click on the Enter button.

18. On screen “Withholding tax-accounting“; enter information in the fields as specified in the table below.

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(Note: On above table, in column “R/O/C”; “R” = Required, “O” = Optional, “C” = Conditional)

19. Click on the Enter button.

20. On screen Create Vendor: Purchasing Data, Enter information in the fields as specified in the below table:

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(Note: On above table, in column “R/O/C”; “R” = Required, “O” = Optional, “C” = Conditional)

21. Click on the Enter button.

22. When all information has been entered, the system will prompt the user to save the information. Select the „Yes‟ option. Click on the Enter button.

23. The system will create and post vendor number in the message box at bottom of screen.

Result Vendor Master will be created as per number ranges defined.