The master data on vendors is used not only by the Accounting department, but also by the Materials Management department. Storing Vendor master records centrally and permitting common access ensures that data must only be entered once. From a financial viewpoint, there are two levels of a Vendor master record: Client level: data at this level pertains to all Company Codes in which the Vendor master record is opened. Company Code level: company specific data is entered at this level and can vary for each Company Code. Purchasing Organization level data is the third level of the Vendor master record. This level can be created, maintained or displayed in the Financial Accounting module through the “Maintain Centrally” menu path. In the Materials Management module, the Purchasing department can record a vendor’s shipping charges, purchase order procedure and sales contact.
In the initial vendor master record screen, the following information is entered: Vendor (number) - If the number is internally assigned (discussed later), the field should be left blank. Company Code - Identifies for what company the master record is being created. Account Group - Performs a similar function to the G/L Account Group and will be discussed in the proceeding slides. Reference - Copies information from an existing master record to the master record being created.
The Account Group : Controls the numbering for the Vendor master record. A Number Range is assigned to an Account Group. Number Ranges can be defined that either allow the system to automatically assign a number to a master record or allow the user to manually assign a number to a master record. Determines which fields will appear on data entry screens along with their data entry status. Is used to designate one-time accounts. You can define several Account Groups for Vendor master records. Each Vendor master record can be assigned to ONLY ONE Account Group.
A Number Range must be specified for every Account Group. A Number Range is identified by a two-character alpha-numeric code. The number range specifies a lower and upper value of a group of master record numbers. The value interval of a Number Range cannot overlap with that of another. There are two ways to number master records: Internally: The system assigns the numbers and retains the last number assigned in the Current Number field. The values defined for an internal Number Range must be numeric. Note: The system will accept a number for an existing master record in the Vendor field of the Initial screen even if the number range is internally assigned. This feature allows a vendor master record to be shared by multiple company codes and sales areas. Externally: The user enters an account number manually. The system determines whether the number is within the defined interval, and if it is available. The values defined for an external Number range can be alpha-numeric.
There are three levels of controlling the screen layout of a Vendor master record: Field status in the Vendor Account Group: Determines the screen layout when creating a vendor master record. Field Statuses (suppress, display , required, or optional) are assigned to fields on a screen and are attached to the Account Group. The Account Group is a mandatory field found on the first vendor master record creation screen. By specifying the Account Group on the first screen, the screen layout for the following screens is defaulted. Field status for the Company Code Determines the screen layout only on the Company Code level of the vendor master record. This functionality is used if a company needs to control specific fields at the Company Code level. Field status for the Activity Type Determines the screen layout when creating, changing or displaying a vendor master record. An example of a field status for an Activity Type would be to make the Reconciliation Account mandatory when creating a vendor master record and display only when changing it.
Since there are three levels for determining screen layout, link rules exist to determine which level takes precedence regarding field status. The field status information of the three screen selection tables are linked to one another in pairs.
Using the link rules to pair the different levels of field statuses, this example demonstrates that the Tolerance Group is a display only field, and the House Bank field is suppressed.
The General Data (Client Level) section of the Vendor master record includes Address & Communication fields such as: Complete address information Phone and fax numbers Language. A check for duplicates can be configured to prevent the creation of more than one master record for the same vendor. This check is configured on address matchcode fields and occurs when creating new accounts or when changing the address on an existing account.
The General Data (Client Level) section of the Vendor master record includes Account Control fields such as: Customer: If the vendor is also a customer, the Vendor Account number may be entered. This field is required for the Clearing with Customer option to work (described later). Group Key: Also known as Corporate Group Key, this freely definable field can be used to group vendors together for reporting purposes. Trading Partner: Used to reconcile inter-company purchases/sales. In this field, you specify the Company ID to which the company code and vendor belong.
The General Data (Client Level) section of the vendor master record includes Bank Details such as: Bank Key: The unique number of the vendor’s bank to which you will remit payment. Bank Account: The account number of the bank account to which you will remit payment. Users need the bank data of a vendor if the Vendor Payment Program will be used to send a payment to a vendor.
Example: Alternative payers for a customer The alternative payer entered in the customer master record (field 1) will be the one making the payment (by default). One of the allowed (permitted) payers (2) can be selected from the predefined list entered in the customer master record when a document (customer invoice) is being posted. In that case, it will override the alternative payer (1). Individual entries indicator(3), if selected, allows a user to define a new alternative payer and its bank details directly in a document (customer invoice). The payer entered directly in the document has a priority over the ones entered in the master records. You can specify an alternative payer in both the general and the company code area of the master data. If you specify an alternative payer in the general data-client segment (show in the slide above), the alternative payer is valid for the customer in all company codes. If you specify an alternative payer in both areas, the specification in the company code area has priority.
The following Account Management items are included in the Company Code segment of the vendor master record: Reconciliation Account : The G/L Account that is updated along with the sub-ledger account (vendor) when a transaction involving the vendor account is created. Sort Key : Defines the data field used to populate the Assignment field (discussed in Chapter 15) for a line item posted to the vendor account. Head Office : This field can be used to group vendor master records. The vendor number designated as the Head Office must be entered in this field in the branch offices’ master records. All transaction details will be recorded in the Head Office account. Each such transaction will contain a reference to the Branch Office account.
The following items are included in the Company Code level of the Vendor master record: Payment Data: Payment Terms : Specify the discount terms and payment periods that make up the overall terms of payment (Discussed in proceeding slides). Tolerance Groups : Clarify the accepted deviation of a vendor payment (Discussed in proceeding slides). For example, when a payment is entered that is not equal to the open payable, the defined tolerance controls how the difference is processed. Automatic Payment Transactions: Payment Methods : Specify the acceptable types of payment such as a check, bill of exchange or wire transfer. Clearing with customer (not shown) : When a vendor is also a customer, selecting this setting allows SAP to offset the purchases and sales made. The net result is the amount owed by/to you. This setting must be selected in the vendor account as well for the feature to work.
Dunning data is included in the Company Code level of the Vendor master record. Information pertaining to the Dunning Program will be discussed in detail in Chapter 21 (Dunning)
Payment Terms are conditions established between business partners to settle the payment of invoices. The conditions define the invoice payment due date and the cash discount offered for early settlement of the invoice. R/3 is delivered with typical payment term keys; however, new payment terms can be defined in configuration. Payment terms enable the system to calculate a cash discount and invoice due date. In order to perform this calculation, the system needs the following three data elements: Baseline Date: The date from which the due date is derived. Cash Discount Periods: The period during which the discount is allowed to be taken. Cash Discount Percentage Rate: The rate used to calculate the discount value. Payment terms can also be configured for installment plans. In this case, each installment may have a different payment term assigned to it.
Payment terms can be entered in the Company Code Segment, Sales Area Segment (Customer Master Record), and Purchasing Segment (Vendor Master Record). Which payment terms are defaulted when posting an invoice depends on where the invoice is created: Invoice Created In Default Payment Terms FI Company Code SD Sales Area MM Purchasing If a default date has been specified for the Baseline Date in the Payment Term definition, the corresponding date from the document header will be copied into the Baseline Date field. The payment term will be defaulted into a document if it has been assigned on the master record, or it can be entered or changed by the user during transaction processing.
There are several types of tolerances in SAP R/3. The primary tolerances in the FI module are G/L Account Clearing tolerances, Employee Tolerances, and Customer/Vendor Tolerances. Tolerances are defined per Company Code. Employees are assigned to an Employee Tolerance Group. For each Employee Tolerance Group, the following can be specified: A maximum amount for posting procedures (how much an employee can post per document and per line item) Maximum cash discount percentage: The maximum cash discount percentage rate that may be assigned by this employee group. The rate is checked at entry, change and clearing of open items. Payment differences allowed (how much over / under payment an employee can accept). A Vendor tolerance is assigned to each vendor account. Like an Employee tolerance, it determines whether a deviation from an agreed upon amount is acceptable. The system compares tolerances for employees with those for the vendor and applies the most restrictive tolerance to determine what ultimately happens when an under/over payment is received/sent.
As of Release 4.5A, it is possible to protect important master data fields so that incorrect or unauthorized changes are not made. This protection is based on dual control principle, which means that every change made to an important field has to be confirmed by another person. The master record is blocked from the payment run until the field change has been confirmed. This payment block is independent of the existing blocking functionality (such as when you block an account because of disputes). Technically, another field within the document is used. Manual payments can still be performed. For example, one user may be authorized to enter changes to fields declared as sensitive. Upon saving the change, a message requires confirmation of the change. Another user with higher approval authority can confirm the changes entered to the sensitive fields. A strong audit trail is available for the user responsible for approval. As a result, the approving party can determine who made a change, the old versus the new value, and the time of the change.
You can confirm the changes either individually, using transaction FK08 (vendors) or FD08 (customers), or in a list, using transaction FK09 (vendors) or FD09 (customers). The transactions can be accessed under the main menu for master records under Confirmation of Change. The sensitive fields in the customer/vendor master records that are controlled using dual control are defined in the Customizing table T055F. You specify the sensitive fields per client and account type. Typically, the number of sensitive fields for vendor accounts will be greater than those for customer accounts, since the latter incoming payments (handled by the payment program in the case of bank collection) prevail. Confirmations can be made for a single customer/vendor or you can generate a list based on any of the following: Customer/Vendor Company code Accounts not yet confirmed Accounts refused Accounts confirmed by me
Purchasing Organization data in the Vendor master record is usually created and maintained by the Purchasing Department. It includes the following: Conditions: Order Currency: Purchase Order currency Payment Terms: this is the value that is defaulted when a Purchase Order is created, not the Company Code Payment Terms Minimum Order Value: minimum value specified for Purchase Orders issued to the vendor Sales Data Salesperson: vendor salesperson Telephone: phone number of the vendor salesperson Control Data GR based invoice verification: indicator specifying that the provision has been made for goods receipt based invoice verification for a Purchase Order item or Invoice item. Acknowledgment Required: determines whether the purchasing document (Purchase Order, Outline Agreement) is to be acknowledged by the vendor. Automatic PO: indicator specifying that the Purchase Order is to be generated automatically from the purchase requisition if the requisition has been assigned to a vendor.
Vendor master records: A master record that contains information about the Vendor Account that controls how business transactions are posted to it and how it is managed. From a financial viewpoint, there are two levels of a Vendor master record: Client level: Data at this level pertains to all Company Codes in which the Vendor master record is opened. Company Code level: Company specific data is entered at this level and can vary for each Company Code. Purchasing Organization Level : Data in the Vendor master record is usually created and maintained by the Purchasing Department. It includes the following information: Order Currency, Payment terms, Sales Data, and Control Data. Account Group - Determines how the fields appear in the master record and controls the numbering for the master record. Number Range - Uniquely identifies a customer record. Numbers may be internally assigned by SAP or externally assigned by the user Reconciliation Account : A G/L Account that is updated with the Vendor sub-ledger account when a transaction involving the Vendor account is created. Sort Key : A field in the Vendor master record that determines the field(s) used to populate the Allocation field in the Vendor account line items. They are configured by defining a Rule which can contain up to 18 characters from up to 4 fields.
Payment Terms: specify the discount terms and payment periods that make up the overall terms of payment. Tolerance Groups - specify to clarify the accepted deviation of a vendor payment. Payment Methods - specifies the acceptable types of payment such as a check, bill of exchange or wire transfer. Account Group - determines how or if a field appears on the master record and specifies a number range from which numbers are selected for the master record. Number Range - Uniquely identifies a customer record. Numbers may be internally assigned by SAP or externally assigned by the user Field Status - specifies whether a field must be required, displayed, optional or suppressed. Field status in the Vendor Account Group - determines the screen layout when creating a Vendor master record. Field status for the Company Code - determines the screen layout only on the Company Code Level of the Vendor master record. Field status for the Activity Type - determines the screen layout when creating, changing or displaying a Vendor master record. Dual Control - A feature that requires a second person to confirm changes made to a master record.
Vendor master records contain information about the Vendor Account that controls how business transactions are posted to it and how it is managed.
Define the components of the Client and Company Code segments of the Vendor master record.
Create a Vendor master records
Chapter 8 Vendor Master Records
Creating a Vendor Master Record Option 1. Create Client and Company Code Segments Option 2. Create Client, Company Code, and Sales Segments
Creating a Vendor Master Record - Initial Screen
Field Status Vendor Master Record Account Group + Company Code +Activity Type = Master Record Screen Layout
Field Status Screen Layout Link Rules The Field is: S Suppressed D Displayed R Required O Optional S D R O S S S S S 1st Priority D S D D D 2nd Priority R S D R R 3rd Priority O S D R O 4th Priority
Example of Field Status Definitions Result Company Data: Payment Transactions: Tolerance House Group Bank Field Selection: Activity Type level O R Company Code level R S Account Group level D O Tolerance Group House Bank D S