Introduction to Vendor Master

The vendor master data are divided into three main areas:
General data – data such as address, vendor industry, tax numbers and payment information,
that are maintained centrally for each vendor. That information is common across all
company codes and/or purchasing organizations in which the vendor is extended to.
Company code data – that are specific to an individual company code.
Purchasing organization data – that are specific to an individual purchasing organization.

NEW VENDOR CREATION IN SAP 770 – TRANSACTION XK01

Before you start to create new vendor, you should find out if it does not already exist in SAP
and if you have got all approvals and documentation.

If you do, you can start run transaction XK01 – Create Vendor

INITIAL SCREEN

FIELD VALUE/TEXT COMMENTS

Vendor Leave blank
Company code Select company code
Purchasing organization Select purchasing org
Account group Select account group
For more info click here
New number will be created
Ex. US, CA, HA etc….
always same as company code
KRED – standard vendor
ZFRT – freight/logistic vendor
ZPAY – payment partner*
 ZPUR – ordering partner**

* vendor who we receive invoice from

** vendor to whom we send our PO
Hit enter or to get on next screen

ADDRESS

FIELD VALUE/TEXT COMMENTS

Title Leave blank
Name Write whole name of Use only CAPITAL LETTERS
vendor. Abbreviate Company to CO
Corporation to CORP
Company names starting Incorporated to INC
with “THE” and “A” – Association to ASSN
omit when entering in Associates to ASSOC
SAP. Limited to LTD

If company name includes

initials, the initials should form
part of the name – i.e. J.C. Penney
 Company should be entered as
JC PENNEY CO

If name contains “and” – use

symbol “&” in SAP

If you need more fields use button to spread

Search Term – first part
Search Term – second part
Write first 10 letters from
vendor name
Use capital letters, without
special symbols, & is AND
- Used for old vendor
name if changed
- Or direct debit vendor
- ZPUR or ZPAY vendor
number
- Notes about deletion

Street/house number Enter street name and Use capital letter only
number
Street – ST
Avenue – AVE
Court – CRT
Boulevard – BLVD
Department – DPT
Apartment – APT

Abbreviate Directional
indicators

East Main Street should

be entered as E MAIN
ST
Postal code Enter postal code Country specific PC
City Name of city Use capital letters only
Country Enter code for vendor Use drop down to select
country
Region Select region code US (state) and CA
(province)

If you need more fields use button to spread

PO Box Enter PO box number Only if requested
Postal code Enter postal code for PO box Only if PO Box exists
 Company postal code Enter the code if needed

If you need more fields use button to spread

Language Selected language will be English for all US, CA,
used on purchase order HA company codes
Telephone Enter phone number Without 1 or country code
Fax Enter fax number Without 1 or country code
Email Enter email address Use only capital letters
StandardComm.Mtd Leave blank
Data line Leave blank
Telebox Leave blank
Comments Leave blank

To set up Output condition (how PO will be sent) use MN04 transaction.

For more info click here
 CONTROL

FIELD VALUE/TEXT COMMENTS

Customer Enter customer number if Use if the vendor and the
requested customer are the same company
Authorization Enter always TRAD Enter TRAD for Trade Payables

Tax number 1 Enter Tax number – Social Enter in xxx-xx-xxxx format

Security number for
unincorporated US vendors.
For more info click here
Tax number 2 Enter tax number – Federal Use Tax ID provided on W-9
Tax ID number for all US form for US – put in format xx-
vendors. xxxxxxx in this field for US
For more info click here vendors.
Tax number 3 Leave blank
Tax number 4 Leave blank
Sole Proprietor Tick box next to it if natural person

Select vendor industry code All vendors must have

Industry For more info click here industry code populated.

PAYMENT TRANSACTIONS

To enter bank data, requestor has to provide proper bank data documents from vendor, like
bank data letter or invoice or email with vendor’s signature!
FIELD VALUE/TEXT COMMENTS
Ctry Country of bank Country code where bank is
For more info click here located
Bank Key Specify bank key Country specific*****
For more info click here
Bank account Enter Account number Length and form is country
specific *****
Account holder Enter name of vendor without Use if vendor name contains
special symbols or account special characters, or if it is
holder if different from vendor required by vendor
Standard characters for
payment transactions
CK Bank control key Enter if needed, it is country
specific *****
IBAN Generate IBAN IBAN is generated by button
, press it if needed to
generate IBAN code
IBAN/Value IBAN code It is automatically written in
For more info click here the field
BnkT Partner Bank type Use if several bank accounts
exists for the vendor; enter A,
B, C etc….

If bank does not exist, set up new bank directly through XK01 or use FI01 transaction.
If bank needs to be changed (mostly SWIFT code), you can do it directly through vendor bank
data in XK01 or via FI02. Always be very careful when bank data needs to be change, the
data are very sensitive especially when the bank is house bank of our company!
 ACCOUNTING INFORMATION

FIELD VALUE/TEXT COMMENTS

Recon. account Enter Depends if vendor country
160000 - domestic vendor equals company code
161000 - foreign vendor country (domestic) or not
165500 – employee vendor (foreign).
164000 - intercompany
Employee vendors are
typically created via the
HR module.
Authorization Enter TRAD
Cash mgmnt group Enter A1 or A2 A1 for 160000 in
recon.acc.,
A2 for 161000 in recon.acc

In US – enter following codes for 1099 or 1042 purposes:

Vendor is not incorporated – 07

Vendor receives Rents – 01
 Medical and Healthcare payments – 06
Death Benefits – 03

Pension, Insurance Premiums, 1042 – 14

Independent Personal Services, 1042 - 16
Previous account number is used when old vendor
number from previous system needs to be entered

PAYMENT TRANSACTIONS - ACCOUNTING

FIELD VALUE/TEXT COMMENTS

Pay terms Enter code for payment Select from drop down in SAP
terms
Chk double inv. Always checked
Payment methods Enter valid method for
outgoing payments:
A – ACH Bank Xfer
C – Check (CA only)
P – A/P Check (US)

Individual pmnt Check the box if needed – use to see

each payment individually, on request
only
Clearing with Tick if the customer number is filled up
customer in control screen

CORRESPONDENCE ACCOUNTING

FIELD VALUE/TEXT COMMENTS

Account memo Enter text if requested Mostly blank or consolidated
 PURCHASING DATA

FIELD VALUE/TEXT COMMENTS

Order currency Enter code for currency Ex. USD – US Dollars
CAD – CA Dollars
Terms of payment Same as payment terms Same as entered on prior
screen

Salesperson Enter vendor contact Enter name

Telephone Enter vendor contact phone Enter phone number

Always tick the box

Tick if the vendor industry is
V001 – Raw Materials
 PARTNER FUNCTION

Just check the screen and click save icon

Partner function can be updated after new vendor creation. The vendor and invoice
presenter are mostly same number; if not than one of them is ZPUR and the second one
is the ZPAY vendor. ZPUR is vendor and ZPAY is invoice presenter – it is used when
ordering address is different than payment address.