The vendor is a Business Partner for 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 the Vendor to whom the company conducts business with.
Vendor Master Record:
The Data Record that contains all the information necessary for any contact with a certain vendor, in particular for carrying out a 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)
3. Purchasing Org. data (2 screens)
Purchasing data (order currency, incoterms, Vendor tax data)
The vendor can also be called as source or creditor
The vendor will fulfill the requirement of the organization.
Since the vendor is crediting business partner, accounting and purchasing departments maintain the vendor master record
In HR each employee is treated as a Vendor.
If the Quality of the 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 outside (Indigenous and imported vendor)
- Regular Vendors: A vendor supplies the material at the client level. He supplies to an entire corporate group.
- Fixed Vendor: The vendor from whom the 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)
- 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 the FI module.
Vendor Account Group: It is the end node of the hierarchy, can contain any number of accounts that belong to the Chart of Accounts. These can be
G/L Accounts from the Financial Accounting
Primary cost or secondary cost
Revenue elements from controlling
The 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
A Vendor can play all roles mentioned above except freight Vendor.
The vendor is assigned to only one Purchase Organization.
The vendor is used at the company code level only.
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