VENDOR MASTER RECORD

Vendor Master Record:

It contains information of a vendor and vendor master can be created by core purchasing
departments and accounting departments. Before going to purchasing transactions
(RFQ,PO etc.,) create Vendor master in T Code- MK01 from purchasing point of view and
before going to Invoice & Payment transactions extend the same vendor to accounting
department in T code FK01 separately otherwise create Vendor master by both purchasing
and Accounting departments in T Code XK01.

Accounting Group:

In Vendor Master Account group is a control function and it controls the following:

1. Number Assignment i.e., external or internal but both are not possible

2. Field Selection i.e., which fields are mandatory, which or optional or hide or display etc.,

3. Which Partner functions or roles are to be allowed or not.

From accounting point of view acct group classifies all our suppliers as Vendors, Ordering
Addresses, Goods Suppliers, Invoice Presented by, Forwarding Agents, One time Vendors
and Import Vendors etc.,

Account Group Customization:(T Code OMSG)

SPRO Logistics General Business Partner Vendors

Control Define Account Groups and Fields selections

In real time also pre defined account groups will be there, as per business requirement we
can define new account groups also. suppose only of Indian vendors one account group or
Import vendors one account group etc.,
 Select any existing account group say 0001
 Click New entries
 enter new account group
 In field status screen click on each field say it is General Data
 In select group click on each one say it is address
 Select each field as suppress or required or optional or display entry.
 suppose select Name 1, Search term, Postal code are required fields
 back to main
 Click Purchasing data and again click purchasing data
 suppose select Order currency, Inco term as required fields and click save
 Back to IMG

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Define Number Ranges for Vendor Master Record:

SPRO Logistics General Business Partner Vendors

Control Define Number ranges for vendor master record

Click Interval
Again Click Interval
Number Ranges
From No To No Ext.
00000000000000 00000000000000000
Click Enter
Click Save
Back
Click Number Ranges
click save
Back to IMG

SPRO MM Purchasing Partner Determination Partner

Roles Define Partner roles

While doing business with partners (Vendors) they can play different roles, such as
vendors, Ordering Addresses, Goods suppliers, Invoice presented by and forwarding agents
etc.,
Our company
MM SD
Main Ordering Goods Invoice Customer
Vendor In Address supplier Presented Sold to Ship to Party Bill to Party
Delhi in Vendor in Bglr from
Party
in HYd chennai

Partner Functions Description Type of Partner

VN Vendor LI
OA Ordering Address LI
GS Goods Suppliers LI
IP Invoice Presented by LI
FA Forwarding Agent LI
FS Freight Service agent LI

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 Back to IMG
Define Permissable Partner roles for Account Group:
If a vendor created with some account group then what proper functions or roles can be performed
by vendor is controlled here.
 New Entries Function Name Group
 Enter requried fields and save VN Z123
OA Z123
 Back to IMG
GS Z123
IP Z123

Create Vendor Master Record by Purchasing Department:

Logistics MM Purchasing Master Data

Vendor Purchasing Create (MK01)

 Vendor
 Pur Org
 Acct Group.
 Click enter
 In address screen enter Vendor Name, address and communication details etc.,
 click enter
Customer No.
If this Vendor is also a customer to our company sales department then enter the customer
number which is already created in SD Module.
In tax information enter vendor Co. tax numbers, Click enter

Order Currency:
With this currency orderly will be given to the vendor.

Terms of Payment:
It specifies cash response, mode of payment, and Installment payment etc.,

SPRO MM Purchasing Vendor Master Define Terms of

Payment
Percentage No. Of Days
 New entries
3% 12 Days

2% 20 Days

Due Net 30 Days

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Inco terms:
These are given by International chamber of commerce to follow the terms and conditions
in foreign trading i.e., who has to bare freight and Insurance coast and who is the
responsible up to vendor country shipyard or airport or up to customer country
shipyard/airport or customer plant etc.,

SPRO MM Purchasing Vendor Master Check Inco terms

Minimum Order Value:

It specifies minimum order value to be given to this vendor. If total PO value is less than
vendor master minimum order value, system gives a warning or error message in PO based
on message settings.

SPRO MM Purchasing Environment data Define attributes

of system message

 Click system messages

here observe message number 06 03 is setted as warning or error.

Schema group Vendor:

It determines calculation schema or pricing procedure to purchasing documents.

Sales Person:
He is the person, who is the point of contact in vendor company and enter his contact
number.

Account with Vendor:

Enter customer number which is using for our company in vendor ERP System.

GR Based Invoice Verification:

If we check this indicator system verifies vendor invoice based on GR documents.

If we set this indicator here then in Info record and in PO's also the same field comes in
select mode and still editable in PO.

Auto Evaluated GR settlements for Delivery;

Auto Evaluated GR Settlements for Returns:
In ERS procedure (Evaluated Receipt settlements) we do not receive invoices from vendor
instead of that our system will generate invoices automatically based on GR quantity.

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But in vendor master the above indicators are pre requisites then only in PO invoice
tab ERS option will come.

Acknowledgement Received:
If we set this indicator here, in PO confirmation tab also the same field comes in select
mode. Then in PO printout it will print as "we require order of acknowledgement for the
goods"., so that after receiving our PO vendor will sned order acknowledgement copy to us
by saying that "he received our PO."

Automatic Purchase Order:

This is prerequisite to create PO's automatically with respect to PR to this vendor.

Subsequent Settlements or rebate Agreement:

Vendors will give rebate or refund to us and total PO's cumulative quantity upon reaching
last date as per agreement or upon reaching some threshold value.

I - Rebate Agreement (T Code MEB1)

Mat - X, Vendor - X
Rebate Rs. 2/Pc
1st May 13 to 31st Aug.
II a) 1st Po On 10th May 100 Pcs
100 Pcs - GR 100 - IR 100 Pmt to vendor Rs. 1000
b) 2nd PO on 20th May 50 Pcs
50 Pcs - GR 50 - IR 50 Pmt to Vendor Rs. 5000
Like this after several PO's
As on 31st Aug Business Volume Comparison (T code ME02)
Total PO's Quantity 1000 Pcs
Credit Memo for Rs. 2000/- to collect from Vendor (T Code MEB4)

Logistics MM Purchasing Master data Subsequent

Settlements Vendor Rebate Agreements

Note: But pre requisites are in vendor master select

subsequent settlements
Subsequent Index
B. Volume Comparison
Doct Index Active

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 Returns Vendor:

If we set this indicator system allows to return the goods to Vendor( due to poo quality or
damages) via SD Shipping process.
Again for SD shipping point of view create same vendor as a customer in T code XD01 and
enter the customer no in this vendor master control screen.
Returns without SD Shipping
1. PO for 10 Pcs 2. GR for 10 Pcs Retruned Delivery
(Pur Dept.) (Inventory Dept) (2 Pcs or 10 Pcs to

Vendor) Returns with SD Shipping:

1. PO for 10 Pcs 2. GR for 10 Pcs Returned delivery to Vendor
(Pur Dept.) (Inventory Dept) (Shipping Dept.)
a. Outbound delivery, b. Post Goods Delivery
Shipping Conditions:
If Goods are returning to vendor with SD process then enter shipping condition here
This shipping conditions determines shipping point automatically to PO or to Outbound
delivery etc.,

Service Base Invoice Verification:

If we select this indicator then in service procurement process vendor Invoices will be
verified based on service entry sheet quantity.
PO Service- X Service Entry Sheet IR also same as Service Entry Sheet
PC- 10/1000 Rs/pc 8 or 10 i.e., Rs. 8000

ABC Indicator:
Based on significance of a vendor through our business, we can classify Vendors in to ABC
Analysis. It is only for our information purpose.
EX A- Very Imp Vendor
B- Medium Imp Vendor
C- Low Imp Vendor

Mode of Transport Border:

If this vendor is overseas vendor then from this vendor through which mode of transport
goods will arrive to our country border.

SPRO MM Purchasing Foreign trade customs Transportation

data Define Modes of transport

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Office of Entry:

If vendor is overseas vendor then enter here to which customs office goods will arrive in
our country from overseas vendor.
SPRO MM Purchasing Foreign trade customs Transportation
data Define customs office

Re Valuation Allowed: (Tcode MRNB)

This is prerequisite to revaluate this vendor stock due to quality reasons or price
fluctuations with other than given price.

PO for 10 Pcs GR for 10 Pcs IR for 10 Pcs Revaluation w.r.t PO 10 Pcs

Rs. 100/pc Rs. 100/pc+Tax Rs. 90/pc or 110/pc

Grant discount in Kind:

This is pre requisite here to get free goods or bonus goods from this vendor for
any material. Ex Buy 2 get 1 free.

Planned Delivery time:

Ex: 5 days Delivery days
It specifies No of working days required to deliver the material by this vendor. In PO if
delivery date not entered manually then system calculates delivery date automatically
based on planned delivery time from Info record (first Priority) or from Vendor master or
from material master (MRP2 View).

Confirmation Control: (Say 0004 - shipping notification)

In PO if confirmation control in selected as shipping notification or inbound delivery etc.,
after receiving our PO, vendor will send immediately advanced shipping notification
ducument to us as a final confirmation about shipment i.e., when it is planning to transport
and exact delivery quantity and when exact delivery date to us etc.,
Later in our system create inbound delivery w.r.t to vendor shipping notification document
and based on this inbound delivery we can plan production activities, ware house
activities, shipping activities etc.,

Randing Profile:
It will round up the decimal values to the nearest values.

Service Data:
Price Marking Agreed:
It will provide price labels to vendor to attach on the order product by vendor itself.

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Order entry by Vendor:
In vendor managed inventory process the vendor only check the inventory or stock
position in our system, If stock is defect vendor only proposes PO in our ERP system and
immediately the sales order will be created in vendor ERP system with our customer PO
details.
Customer Vendor
ERP i.e., SAP ALE/Idoc ERP
1. Monitor inventory Vendor
Sales order w.r.t. customer PO.
2. PO created by vendor

 Click enter
In Parameter function screen:

Parameter function No Name Number

Name

Vendor Internal Nippon

VN

 Click Save
here vendor number is created internally as per account group number range (observe
OMSJ T code for number range)

Create or extend same vendor to accounting department (T code FK01):

Accounting financial accounting Accounts payable Master records

 Enter same vendor
 company code
 accounting group
 click enter
Create Vendor : Accounting information
Reconciliation Account:
It is also G/L accounts in system and for normal postings that is for invoices and payment
transactions. This G/L accounts parallelelly updated with sub ledger account. Whereas for
special posting i.e., Advanced or down payment this G/L account is replaced by another G/L
account.

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Cash Management Group:
It specifies which planning group has to involve in cash transactions with this vendor.
 Click enter

Create Vendor: Payment transactions Accounting:

Payment Terms:
In same vendor Master different payment terms are there in MK01 screen and in FK01
screens then purchasing payment terms will overwrite by FI payment terms.

Credit Memo Terms:

There are the payment terms agree with vendor for credit memo (To collect amount from
vendor).

Check double Invoice:

If you check this indicator during Invoice verification process, (MIRO) system will check
whether the entering invoice is duplicate invoice or not by valuating some fields i.e.,
reference No., (Vendor Invoice No) , Reference NO Co. Code and invoice date etc.,
If Invoice is double invoice, system gives warning or error message.
SPRO MM Logistic Invoice verification, incoming invoice

set check for duplicate Invoices

Here it controls which fields system has to valuate to identify the duplicate Invoice in
(MIRO T Code).
If more options selected here then probability of finding duplicate invoice will be low
Co. Code Name Check co. code Check reference Check M

VODA
Xxxxxxxxxxxx

Payment Method: (Cheque/Bank Transfer)

Alternative Payee:
As per this vendor Invoice if a payment to different vendor then enter that vendor no here.

Invoice Verification:
Tolerance Group:
It specifies the upper limits and lower limits if invoice amount is greater or lesser than PO
amount if these limits also credited system through error in Invoice.

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SPRO MM Logistic Invoice verification Incoming invoice
Configure vendor specific tolerance
 New Entries
 Co. Code
 tolerance group
 upper limit/check limit
 upper limit per 1 unit
 click save
Pre payment: A
 Click save
 MKVZ Vendors display or list of vendors

Create New Vendor centrally by both Purchase & accounts dept. (T Code
XK01):
Logistics Logistics Execution Master data Partner Vendor
Create XK01.
 vendor No.
 Co. Code
 Purchasing
 Account 'group
here both MK01 and FK01 fields will come and enter all the required details and click save.

Create or extend Vendor existing to other Purchase org and Co. Code (T Code XK01):

 Enter existing Vendor No.

 Enter different Co. Code and different PO.
 Click Enter
In all the screens enter the required details from this co. code and PO point of view.

One time Vendor Master:

Some vendors will supply the material very rarely i.e., once or twice a year then we may not
create separate vendor master record for each of this rarely supplied vendors, instead of
that a single vendor master record can be created for all the rarely supplied vendors which
is called as one time vendor master.
 Go to OMSG
 select account group 0099
 click detail button
 one time account
 In field status sub screen you can't each 0
 In select group sub screen click on each one
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  here many fields is select as suppress.

In address screen enter name as one time vendor but not a specific vendor name and dont
enter particular address. Here many fields coming as suppress as per account group
reselection enter required details in all the fields and save.

Note: In PO creating for one time Vendor system will ask to enter name and address details
of the onetime vendor. In Po itself and while entering Invoice w.r.t. PO system will ask to
enter one time Vendor Bank details in Invoice itself.

VENDOR MASTER T CODES

Purchase Dept Accounting Dept Centrally

Create Vendor MK01 FK01 XK01
Change Vendor MK02 FK02 XK02
Display Vendor MK03 FK03 XK03
Display Changes MK04 FK04 XK04
Block/Unblock Vendor MK05 FK05 XK05
Flag for Deletion of Vendor MK06 FK06 XK06
Change Account group MK07
List Display Vendors MKVZ
Planned Changes MK12
Activate Planned Changes MKH3
Block Vendor Master (XK05):
 Enter Vendor Number
 co. code
 Pur. Org
Select Blocking is required in all co.codes or in all selected co.codes and in all purchase
organization or in selected purchase organization.
 Select block information
 Click Save
Note: It requires we can unblock the vendor with the same (TCODE XK05) by removing the
indicators.

Vendor Master General data table - T code- LFA1

Co. Code data table - T code- LFB1
Pur Org data table - T Code- LFM1

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 VENDOR MASTER CUSTOMIZATION

PARTNER FUNCTIONS:

While doing business with our partners i.e., with our vendors, they can play
different roles or functions with us such as Vendors, Ordering Addresses, Goods Suppliers,
Invoice Presented by and Forwarding Agents etc., Then Create seperate Vendor master
records for all these roles with relevant account groups.

SPRO MM PURCHASING PARTNER DETERMINATION PARTNER

ROLES DEFINE PARTNER ROLES

MM SD

Main Order Goods Invoice Sold to Ship to Bill to Payer

vendor in Address Supplier Pr by Party Party Party
Delhi in HYD in BGLR Chennai

Partner Function Name Type of Partner

VN VENDOR LI
OA ORDERDING ADDRESS LI
GS GOODS SUPPLIER LI
IP INVOICE PRESENTED BY LI
FA FORWARDING AGENT LI
FS FREIGHT SERVICE AGENT LI

 Back to IMG
 Define Permissible Partner roles per account group
 For Example '0006' account group Vendors performs only Ordering Address role
but not GS & IP roles, That's why for '0006' account group only 'OA' role is
assigned. Same way for '0002' account group vendors only 'GS' role assigned and
for '0004' account group only 'IP' role is assigned.

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 Back to IMG
 Partner Setting in Vendor master Record
 Define Partner Schema
 New Entries

Purchase Schema Description

Y1 Schema Group

 Click Enter
 Select this Schema row and Click 'Partner Functions in Procedure'

 New Entries
Function Description No Change Mandatory
OA
GS
IP

 Back to IMG
 Assign Partner Schema to Account Groups
Acct Group PSEK ORG
Y111 Y1
 Partner Settings for Purchasing Documents
 Define Partner Schemas
 New Entries
Partner Schema Description
YYYY Partner Schema for PO
 Select Schema row
 click Partner function in Procedure
 New Entries
Function No Change Mandatory
OA
GS
IP
FA

 Back to IMG
 Assign Partner Schema to Document Type
Document Category Document Type Partner Schema
PO NB YYYY

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Test Scenario:
Step 1: Create Vendor master recdord for Goods Supplier Vendor with account '0002'.

Step 2: Create Vendor Master for Invoice presented by role with account group '0004'.

Step 3: Create Vendor master for 'OA' vendor with our new account group 'Y111' and n
partner functions screen assign partner functions and Number.
Partner Fun. Vendor No.
OA Xxxx
VN Xxxx
IP Xxxx
GS Xxxx

Click Save

Step 4: Create PO to OA or VN vendor

 Go to ME21n
 Document Type 'NB'
 Vendor NO.
 Click Enter
 Enter Purchaser Orgnaization and Material
 In header, and in Purchase data tab observe partner funcitons copied or not
from vendor master. In Vendor master Partner fumctions are not maintained
then manually also enter Partner funcitons and vendor nos. here

Step 4: Enter GR in MIGO wrt PO.,

In Partner tab it is showing goods are supplied from GS Vendor

Step 5: Enter Invoice wrt PO

But in Vendor SW server it is shoiwng IP vendor i.e., Invoice frecieved from IP Vendor.

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