VENDOR MASTER

TOPICS
 What is vendor master?
 Data in vendor master
 Creation of vendor master
 Account group
 One time vendor
 Reconciliation account for vendor
 Partner role/function
 Create vendor with reference
 Blocking or deleting the vendor
 Configuration related to vendor master.

OVERVIEW

Vendor master records are maintained by both the purchasing and accounting departments,
as illustrated in Figure. As a vendor is crediting business partners in the company, the
purchasing department maintains purchase-related data such as payment terms, and the
accounting department maintains vendor G/L account information such as bank account
details.

 Vendor master contains information about the vendor that supply material to
enterprise
 Information about a vendor is stored in individual vendor master record.
 Vendor master record contains vendor name, address, currency used for ordering,
terms of pay, contact person.

The vendor master record consists of three sections:

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  General data is maintained at the client level because this data is common for all of
the lower-level organizational units. Examples of general data include vendor
address, contact phone numbers, and so on.
 Accounting data is maintained by the accounting department and is created at the
company code level. To maintain accounting data, use Transactions FK01, FK02, and
FK03.
 Purchasing data is maintained by the purchasing department and is created at the
purchasing organization level. To maintain purchasing data only, use Transactions
MK01, MK02, and MK03.

If you create a vendor centrally, it means you want to maintain accounting data and
purchasing data together; in this case, use Transactions XK01, XK02, and XK03.

To create vendor master XK01

TO change vendor master  XK02

To display vendor master  XK03

XK01

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VENDOR ACCOUNT GROUP

When creating a vendor master record, you must decide which account group you are going
to assign to this vendor.

The vendor account group plays an important role in vendor master data because it has
many controlling functions.

It’s used to categorize vendors, and vendors similar in nature are grouped together such as.,

 One-time vendors,
 Domestic vendors,
 Overseas vendors,
 Employee vendors, etc.

The account group controls,

 Type of number assignments ( external or internal ) and number range.

 Fro, which the account number that the system uses to identify the vendor is to be
assign.
 The field selection which fields are mandatory, optional or not required.
 Which partner scheme is valid
 The status whether the vendor is one time vendor.

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  Field selection
Enables to control the fields in various screens. For example, you can make certain
fields required fields and suppress others.
 Number interval
This can be either an external number range (manually assigned) or an internal
number range (system assigned).
 Vendor status
The account group determines whether the vendor is a one-time vendor.
 Partner schema
Determines which partner schemas are valid.

FIELD SELECTION

The field status in the vendor master data can be controlled by account group, company
code, and activity (transaction code). However, SAP recommends controlling the screen
layout via the account group only. In some exceptional cases, you can control field status via
activity; for example, if you want to allow entries in the Reconciliation Account field in create
mode (Transaction XK01/FK01) and don’t want to allow entry in the Reconciliation Account
field in change mode (Transaction XK02/FK02). In this case, you need to define the field
status of the Reconciliation field as required by the activity.

 Suppress This field won’t be displayed when creating vendor master data for your
account group.
 Req. Entry This field will be mandatory when creating vendor master records.
 Opt. entry This field will be displayed when creating vendor master data, and you
can either enter a value or leave the field blank.
 Display This field can’t be edited when creating vendor master records.

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VENDOR STATUS ( ONE TIME VENDOR )

You can create a vendor master record for one-time vendors with the one-time vendor
account group ( CPD ). A one-time account records transaction figures for a group of vendors
with which you conduct business once or rarely. Certain vendor data (such as address and
bank details) aren’t entered in the master record but rather in a transactional document
(such as a purchase order). This vendor master data will be used in purchasing documents
when you’re working with a one-time vendor.

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Reconciliation account

When you create vendor master records, you have to maintain a reconciliation account. The
reconciliation account is a G/L account in SAP ERP Financials Financial Accounting (which
we’ll refer to as Financial Accounting or FI). This is a very important step, as all the financial
transactions with the vendor is posted in the G/L account.

Recon. Account: suitable recon account you

need to assign to vendor

When you do the invoice verification the

amount details posted to this GL account

Its finance level data maintain in company

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