Partner Functions for Vendor in SAP

                        

                                SAP refers to entities involved in a transaction with your company as partners or ‘business partners’. Each customer may represent several functions, each of which is specific to accomplishing part of the transaction. These ‘personalities’ or functions are thereby referred to as partner functions. The different partner functions are stored within the customer master record. There are four (4) business partners that are mandatory for a customer, namely:

Sold-to party: The sold-to party (or partner function)is the central partner function through which all the other functions are referenced. The sold-to party is the party that places the order and to whom sales and product prices are recorded against (e.g., for reporting purposes).

Ship-to Party: The ship-to party is the party (and address) to whom the order is shipped. Can the ship-to differ from the sold-to? Yes, the ship-to party could be at a totally different location e.g., at a shipping/receiving location.

Bill-to Party: The bill-to is the party to whom the bill is sent. Again, the bill-to can differ from the sold-to and ship-to. For example, it might be the accounts payable department at the customer’s company.

Payer: The fourth mandatory partner is the payer. The payer is the party that pays the bill. This could again be an entity distinct from any of the three parties, with a unique address.