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.

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.

Process for using One Time Vendor

One Time Vendors 

One time vendors can only be used for specific vendor account groups. There is a flag for each account group in the configuration for this. If one does not exist you will have to create a new vendor account group.

To create a One Time Vendor use XK01 and select the OTV account group.

When creating say a PO use your OTV account the transaction will prompt you to name, address, etc. (unlike a normal vendor).

You experienced a problem with OTV's whereby users couldn't be bothered to create permanent vendors and just used the OTV account, so beware of that.