Vendor Master In SAP MM

Vendor Master 

Vendor:

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: The vendor is also called a creditor, he is the external source of supply

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

Vendor Master Record:

The Data Record 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)

Correspondence

Withhold tax

3. Purchasing Org. data (2 screens)                           

Purchasing data (order currency, incoterms, Vendor tax data)

Partner roles

Note:

The vendor can also be called a source or creditor 

The vendor will fulfil 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 a 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 vendors)
• 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)

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 the FI module.

Vendor Account Group: It is the end node of the hierarchy, and 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

Note:

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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