SAP Vendor Master Data

Use

The vendor master database contains information about the vendors that supply an enterprise. This information is stored in individual vendor master records. A vendor master record contains the vendor’s name and address, as well as data such as:

• Currency used for ordering from the vendor
• Terms of payment
• Names of important contact persons (sales staff)

Since, to the accounts department, the vendor is generally a creditor (accounts payable), the vendor master record also contains accounting information, such as the relevant control account (reconciliation account) in the general ledger.

Therefore, the vendor master record is maintained by both Accounting and Purchasing. This section deals with the creation, changing, and displaying of the data relevant to Purchasing stored in the vendor master.

The accounting data must be provided for a vendor before you can enter the vendor's invoice for payment in the system.

How is the Vendor Master Record Organized?

The structure of the vendor master record reflects that of your enterprise. A vendor master record is subdivided into three different data areas:

1. General data This is data that applies equally to all company codes within your corporate enterprise. The general data includes information such as the vendor's address and telephone number, and the language of communication with the vendor.
2. Company code data A large amount of accounting information is kept at company code level. This data includes, for example, payment transaction data and the number of the relevant control account.
3. Purchasing organization data Certain purchasing data is kept at purchasing organization level. Such data includes contact persons, terms of delivery, etc.

The organizational level "purchasing organization" contains the following sub-levels that are relevant to the wholesale/retail trade:

– Vendor sub-range (VSR)

– Plant

– Vendor sub-range/plant

In addition to the data applicable to a purchasing organization, you can maintain data for a certain plant or vendor sub-range (terms of payment or Incoterms, for example) that varies from that at the purchasing organization level.

The search for and outputting of data is carried out according to the following priorities:

1. Vendor sub-range - plant - purchasing organization
2. Vendor sub-range - purchasing organization
3. Plant - purchasing organization
4. Purchasing organization

This means:

1. If data exists for the most specific level "vendor sub-range - plant - purchasing organization", this data is used.
2. If not, the system checks whether data has been maintained at the level "vendor sub-range - purchasing organization" and outputs this if available.
3. If no data exists at this level either, the system searches for data at the level "plant - purchasing organization."
4. If nothing is available here either, only the general data at the purchasing organization level is outputted.

Specifying Variant Data

If, in the retail industry for example, you wish to work with different data for certain sites or vendor sub-ranges, proceed as follows:

1. On the Purchasing data or Partner roles (partner functions) screen, choose Different data. The button is only available if an account group allowing the data retention levels "vendor sub-range" and/or "site" was chosen.

If no variant data has yet been created, you will be asked to specify the data retention levels. The existing levels are displayed.

2. Select the desired data retention level and choose Purchasing details or Partner details. The relevant screen appears. Enter the variant data and then return to your starting point.

What is the Function of the Account Group?

When you create a vendor master record, you must enter an account group.

The account group determines

• The type of number assignment
• The number range from which the account number used by the system to identify the vendor is assigned
• Whether or not a one-time vendor is involved
• Which fields screens contain and whether entries in these fields are mandatory or optional
• Which data retention levels below the purchasing organization are allowed (for example, vendor sub-range)
• Which partner determination schemas are valid

Once a vendor master record is created, you cannot change the account group. Only your system administrator is authorized to do so in exceptional cases. (This may be necessary, for example, if a further application comes into use.) In this case, fields that were previously suppressed at the time of creation may be ready to accept input when the master record is changed.

How are the Vendor Master Records Numbered?

Each vendor master record is assigned a unique number (the vendor's account number used by Financial Accounting). You need this number to call up the master record or to enter purchase orders.

Numbers can be assigned on an internal or external basis. Internal number assignment means that the system assigns the numbers. External number assignment means that you enter a number when you create the master records. For external number assignment, alphanumeric numbers are also allowed.

The type of number assignment and the number range are determined through the account group that you enter when you create a master record.

The system ensures that the numbers are always unique. With internal number assignment, the system assigns numbers consecutively from a given range. With external number assignment, it prevents an already used number from being reused.

A vendor has the same account number in all company codes.

Maintaining SAP MM Vendor Master Records

Use

This section explains how to create, change, or block a vendor master record.

Features

Creating a Vendor Master Record

1. Choose Master data
® Vendor ® Centrally ® Create from the Purchasing menu.
2. Enter the purchasing organization and an account group. If you want to use another vendor master record as a reference, enter the account number of that vendor in the Vendor (Creditor) field (under Reference). Press
ENTER.
3. Enter the vendor's address and fill the Country and Language fields. These entries are mandatory. Press
ENTER. The Create Vendor: Control screen appears.
4. On this screen, you can enter the following information: accounting data required by the payment and dunning programs, the data for declarations to the tax authorities, and data required for analyses in Purchasing (such as an industry key). Press
ENTER. The Purchasing Data screen appears.
5. On this screen, enter purchasing-specific data such as the order currency or the key for the terms of payment.
6. Save the vendor master record.

Terms of Payment

Terms of payment represent stipulations concerning the time of payment of amounts due, including the specification of any discounts granted for prompt payment, together with the discount-qualifying periods (for example, the clause "payable in 30 days net", or "discount of 2% if payment is made within 10 days". In the latter example, the discount is deducted from the invoice amount if payment is made within the specified period.

You specify the terms of payment in the vendor master record. They automatically appear as default values in any purchase orders created for the vendor in question; however, you can change them as needed.

Terms of payment can also be entered in the vendor's invoice. These are then applied by the payment program.

Changing a Vendor Master Record

1. From the menu bar, choose Master data
® Vendor ® Purchasing ® Change.
2. Enter the vendor number and the purchasing organization, and select the data you wish to change. Press
ENTER.
3. Make your changes and save.

Displaying a List of Vendors

You can create a list of vendors. This list contains important information on individual vendors: the purchasing organizations for which material was procured from a vendor, the terms of payment, and the blocking status of the vendor, for example.

1. Choose Master data
® Vendor ® List displays, then Purchasing list.
2. Enter your selection criteria and run the analysis.

Blocking Vendors

Suppose you would like to prevent further deliveries from a vendor who delivers goods of poor quality. You can freeze or "block" the vendor account in the vendor master record.

Once you have set the blocking indicator in the vendor master record, purchase orders can no longer be placed with this vendor. The "blocked" status for the vendor applies until such time as you cancel the blocking indicator in the vendor master record.

To block a vendor, proceed as follows:

1. Choose Master data
® Vendor ® Purchasing ® Block. Enter the vendor number and the purchasing organization. Then press ENTER.
2. A screen appears, in which you can indicate whether the vendor is to be blocked for a specific purchasing organization or for all purchasing organizations. Save your input.

You can block a vendor for an individual material via the source list. Source lists are discussed in the section Optimized Purchasing.

If QM is active within the procurement function, you can impose a block for quality reasons. (See Quality Management in Procurement.)

One-Time Vendors

You can create a special vendor master record for vendors from whom you procure goods only once or rarely.

For example, suppose you order goods from a vendor with whom you usually do not place orders, because your main vendor was not able to supply the required items. In this case, you would store the relevant data in a "one-time vendor" master record.

In contrast to other master records, a "one-time vendor" master record is used for several vendors. The purpose of this is to avoid the unnecessary creation of an excessive number of individual vendor master records. For this reason, you may not store any vendor-specific data in a "one-time vendor" master record. When you create a purchasing document with a one-time vendor, the system automatically branches to a master data screen. There you enter the specific data relating to the vendor, such as name, address, and bank. This information is stored separately within the document.

"One-time vendor" master records are displayed, blocked, or deleted in the same way as all other master records.

When creating a "one-time vendor" master record, you must assign a one-time account group. This account group determines that the vendor-specific fields are suppressed. You provide this data when you create the relevant purchasing document.

Maintaining Partners

The business partner "vendor" can assume different roles in its dealings with another enterprise. Accordingly, in a procurement transaction, the vendor is first the order recipient, then the supplier of goods, then the invoicing party, and finally the payee. One or more of these roles may involve different vendor master records.

For this reason, several partner roles (partner functions) can be assigned to the vendor. The variant data is used in the associated downstream logistics and accounting functions.

On the Partner roles (partner functions) screen, the partner roles that are marked as mandatory roles in the partner determination schema of the account group (defined in Customizing) are suggested by the system during the creation of a vendor master record.

In the Number field, you enter a vendor number. The system checks whether this vendor has been created for the current purchasing organization.

The following partner roles are defined in the standard system:

• Vendor
• Order recipient
• Goods supplier
• Invoicing party
• Payee

You determine which of the partner roles are optional and which are mandatory via the Customizing functions. All roles except that of vendor are optional. If no other roles have been maintained, the data of the "vendor" role apply.

The "different payee" is displayed if it has been maintained under the payment transaction data.

To maintain partners in the vendor master record, choose Vendor ® Change. On the initial screen that then appears, choose Partner roles (partner functions).

Partners for centrally agreed contract
You can maintain partners for centrally agreed contracts in the vendor master record and in the contract. If the partners have been maintained in the vendor master record, they are suggested in the contract.

To create partners in a centrally agreed contract, choose Header ® Partners in the contract. The overview screen for partner maintenance appears. Here you can determine the levels at which you want to enter partners. Branch to the screen for partner maintenance and enter the data.