Vendor Master In SAP MM

Vendor:

Vendor is a Business Partner fro whom the material or services can be procured.

                                                        (Or)

Vendor is a business partner to whom amounts are payable for goods delivered/ services performed by him.

Note: Vendor is also called creditor, he is the external source of supply

Vendor Master: It contains the complete data of Vendor to whom the a company conducts business with.

Vendor Master Record:

The Data Record that containing all the information necessary for any contact with a certain vendor, in particular for carrying out business transaction.

Vendor Master Record consists of                          XK01                        MK01

1. General Data (2 screens)                                          

- Address, Communication details

-Control data

-Bank details

2. Company code data (5 screens)                             

- Account management (reconciliation a/c etc.)

-Payment transaction (payment methods for automatic payment transactions)

-Correspondence

-With hold tax

3. Purchasing Org. data (2 screens)                            

-Purchasing data (order currency, inco-terms, Vendor tax data)

-Partner roles

Note:

- Vendor can also be called as source or creditor

- Vendor will fulfill the requirement of the organization.

- Since vendor is crediting business partner, accounting and purchasing departments maintain the vendor master record

- In HR each employee is treated as Vendor.

- If the Quality of Vendor’s product is poor, you can block a vendor for an individual material via source list.

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Type of Vendors:

Internal Vendors: Supplying by another company code under the same client

External Vendors: A company or a person who supplies material from out side (Indigenous and imported vendor)

Regular Vendors: A vendor supplies the material at client level. He supplies to entire corporate group.

Fixed Vendor: The vendor from whom company will take certain materials, which are low value and high volume type

One time Vendors: Supply only once. (If RFQ/PO is sent to the vendor, you have to enter the vendor data manually)

Vendor Account:

- It contains transaction figures where value movements are recorded as period totals in account payables.

- Payables to vendors are recorded simultaneously in a general ledger account by assigning a reconciliation account to the vendor            account.

- Each vendor account is a G/L account in FI module.

Vendor Account Group:

It is the end node of the hierarchy, can contain any number of accounts that belongs to Chart of Accounts. These can be

- G/L Accounts from the Financial Accounting

- Primary cost or secondary cost

- Revenue elements from controlling

Vendor Account Group determines

• The Intervals for the Account numbers.

• Whether it is a one-time account?

• Which fields are ready for input or must be filled in the material master.

• Whether the number range is assigned internally or externally

Note: An Account Group must be assigned to each Vendor master record

Important Vendor Groups are:

0001 - Vendor standard                 LIEF - External Vendor

0002 - Goods Supplier                   MFNR - Manufacturer

0003 - Alternative Payee               KRED - Internal Vendor

0004 - Invoice presented by         CPD - One time Vendor

0005 - Forwarding Agent

0006 - Plants

Note:

• A Vendor can play all roles mentioned above except freight Vendor.

• Vendor is assigned to only one Purchase Organization.

• Vendor is used at company code level only.