Organizational Levels in Vendor Master

Organizational Levels in Vendor Master

Ø  In Accounting, the vendor is regarded as the company's crediting business partner. The vendor

master record is therefore maintained by Accounting and Purchasing.

Ø  You can use the R/3 System authorization concept to define how data maintenance should be

organized in the vendor master record.

Vendor Master Data
Each user department can maintain both general data and Purchasing and Accounting-specific data centrally or decentrally. In addition, Purchasing often maintains data at corporate group level.

Data in the vendor master record is subdivided into three categories:

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

Ø  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.

Ø  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.

Reconciliation Account for Vendor Master record

Ø  When you create a vendor master record, you need a unique number for the vendor. Depending on the account group, the system assigns this automatically or the person responsible assigns it

manually. The vendor number is also used as the subledger number in Financial Accounting. In

subledger accounting, the total liabilities are updated per vendor.

Ø  When you create a vendor master record, you have to maintain a reconciliation account. The

reconciliation account is a G/L account in G/L accounting. It maps a company's liabilities towards several vendors in G/L accounting.

Ø  When entering invoices, you enter the vendor, and the system uses the reconciliation account from the vendor master record.