Vendor Master - SAP Implementation

Vendor Master - SAP Implementation

Vendor Master The vendor master record contains all the pertinent/relevant information about the vendor. It also provides data that... 7:54 AM

Vendor Master

The vendor master record contains all the pertinent/relevant information about the vendor. It also provides data that controls the procedure of processing and recording of business transactions. The Vendor master record contains data that controls how business transactions are recorded and processed by system against the Vendor.

The master record is used not only in Materials Management but also in Accounting. By storing vendor master data centrally and sharing it throughout your organization, you only need to enter it once. You can prevent inconsistencies in master data by maintaining it centrally. If one of your vendors changes their address, you only have to enter this change once and your accounting and purchasing departments will always have up-to-date information.

Each vendor has a unique vendor number assigned in the system.  This number is used to identify the vendor when calling up reports or performing transactions on their accounts.

The details captured for each vendor master will be categorized into 3 broad categories:

1. General Data segment
2. Company Code Data segment
3. Purchasing Organization segment

i)          General Data

This contains the general data of the vendors that can be accessed by all companies. Examples are:

·         Vendor’s full name,

·         Address,

·         Email address,

·         Contact numbers,

·         Bank details (In case when Payment will be made through Bank Transfers)

·         etc

ii)          Company Code Data

Information that is specific to a company code. Examples are:

·         Alternate payees

·         Previous account number if any

·         Default payment terms, method and house bank that can be overridden during data entry

·         Withholding tax information.

ii)                   Purchasing Organization Data

This contains all the data required for purchasing. The Materials Management – Purchasing module, will utilize this information.

·         Purchasing Organization

·         Name of important contact person

·         Indicator specifying Goods receipt based invoice

Accounts Groups

Vendor accounts can be combined into various account groups so that they can be organized and managed easily. The vendor accounts in account groups usually have similar characteristics. e.g. account group for domestic vendors, foreign vendors etc. The account group is used for central field displayed in the vendor master record. i.e. to ensure that all the correspondence has complete address information. Alter the field status so that all the address fields are marked as required, optional etc.

When creating the vendor master record the accounts groups entered on the initial screen in financial account. Once the vendor’s master data created account group cannot be changed.

An accounts group determines the following:

The type of number assignment,

A number range for assigning account numbers,

Which fields are displayed and whether their entry is optional or required (field status) when you enter or change vendor master data in SAP.