Vendor Master In SAP MM
Vendor Master In SAP MM
Vendor is a Business Partner fro whom the material or services can be procured.
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
2. Company code data (5 screens)
- Account management (reconciliation a/c etc.)
-Payment transaction (payment methods for automatic payment transactions)
-With hold tax
3. Purchasing Org. data (2 screens)
-Purchasing data (order currency, inco-terms, Vendor tax data)
- 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)
- 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
• 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.