Vendor Master In SAP MM

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)                                          sap mm

– Address, Communication details
-Control data
-Bank details

2. Company code data (5 screens)                             sap

– Account management (reconciliation a/c etc.)
-Payment transaction (payment methods for automatic payment transactions)
-Correspondence
-With hold tax

3. Purchasing Org. data (2 screens)                            tekslate

-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.

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