Expert Guidance in SAP MM: Vendor Master Record Configuration and Explanation

Vendor Master Data

Vendor master Data is an important master data in MM. When we create a purchasing document the system copies currency, payment data and delivery time from vendor master record.

Data in the vendor master record is subdivided into three categories

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

Ÿ Purchasing data: This includes the purchase order currency, incoterms, vendor’s tax data and partner roles. This data is maintained for each purchasing organization.

Ÿ 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.

Account Group in Vendor Master Record

The type of number assignment (internal or external) and the number range

The field selection-which fields are ready for user input, which fields must be maintained, and which fields are hidden

Which partner schemas are valid

The status-whether the vendor is a one-time vendor

In contrast to other master records, we can use a one-time-vendor master record for several vendors. It is a collective master record. For this reason, no vendor-specific data such as an address or bank details are stored for one-time vendors. This data is recorded in the relevant purchasing document only. When a purchasing document is created for a one-time vendor, the system automatically opens an additional data screen. In which we need to enter specific data, such as the vendors name, address, and bank details.

Configuration of Account group for Vendor Master Record is as below

Click define Account Groups and Field Selection (Vendor)

Select Account group 0001 – Vendors and click Details

For Account group 0001 the number range is 01 –n 500000 to 599999

This means if we create a vendor with account group 0001 the internal number of vendor created will be in above number range.

Also this account group is vendor sub range relevant. This means we can decide vendor’s product range into different groups. For example detergents, lubricants and specify different ordering address for those groups.

The partner determination procedures are

Partner schema purchasing org – L1

Partner schema vendor sub range – L2

Partner schema plant level – L3

Partner schemas are defined in below IMG path

SPRO > Material Management > Purchasing > Partner Determination > Partner settings in Vendor Master Record > Define Partner Schemas

Click Define Partner Schemas

Select Partner Schema L1 and click Partner functions in Procedure

We can see which partner functions are allowed in Partner Schema L1. Similarly we can see which partner functions are allowed in Partner Schema L2 and L3 and also we can create our own partner schema and assign the partner functions we want.

Reconciliation Account in Vendor Master Record

When we create a vendor master record, we have to maintain a reconciliation account. The reconciliation account is a G/L account in G/L accounting. It reproduces a company's liabilities towards several vendors in G/L accounting.

In a typical Vendor master record in accounting view we can see the Reconciliation Account as 160000 for Domestic vendors as below.

Partner Roles

The vendor can have various functions in its interaction with our company. For example, 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, we can distribute one or more of these roles among different vendor master records.

The important partner roles for vendor are

VN – Vendor

GS – Goods supplier

IP – Invoicing party

AZ – Payment recipient

OA – Ordering address

We maintain Partner roles in IMG in below path

SPRO > Material management> Purchasing> Partner determination > Partner roles > Define partner roles

Click above

We can see some important partner roles like Ordering address,

Partner function VN – Vendor

We maintain permissible partner roles per account group in IMG in below path

SPRO > Material management> Purchasing> Partner determination > Partner roles > Define permissible partner roles per account group

Click above

Scroll down

Blocking a Vendor

To block a vendor master record, choose from the Purchasing menu, Master Data → Vendor → Purchasing → Block (transaction MK05). We can decide whether the vendor is to be blocked for just one purchasing organization or for all.

The transaction code to create a vendor centrally is XK01

Change vendor centrally XK02

Display vendor centrally XK03

The transaction code to create vendor purchasing is MK01

Change vendor purchasing XK02

Display vendor purchasing XK03

Exercise: Vendor Master Record

From head office perspective, create a vendor master record for the organizational levels company code 1111 and purchasing organization 1111. Create this vendor master record with the account group 0001.

The following data is to be entered in the master record.

Title:

Name: Bangalore Industrial Supplies

Search term: BIS

Street/House number: 17, 1^st Main Road, Peenya industrial area

Postal code/City 560058 Bangalore

Country: IN

Region: 10 (Karnataka)

Language: English

Accounting information the reconciliation account in G/L accounting has the description Trade Payables - Domestic. Use the F4 input help to determine the number of the reconciliation account.

160000

Cash management group – A1 (Domestic payments)

Purchasing data

Purchasing has agreed on the following conditions of payment: If we pay the invoice within 14 days, the vendor grants a discount of 3 %, and if we pay within 30 days, 2 % is deducted. The invoice has to be settled within 45 days. In this case, there is no cash discount. Use F4 input help to determine the relevant payment conditions.

0002

The purchase order currency used for the vendor is INR.

Enter a contact person (Amit) and telephone number (9191919191) for the vendor’s Purchasing department.

After you enter the data, save your entries.

XK01