The master data for Customers is used not only by the Accounting department, but also by the Sales and Distribution department. Storing Customer 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 Customer master record: Client level: data at this level pertains to all Company Codes in which the Customer master record is opened. Company Code level: company specific data is entered at this level and can vary for each Company Code. Sales Area data is the third level of the Customer master record. As stated earlier, each combination of Sales Organization, Distribution Channel and Division constitutes a Sales Area and the data at this level of the master record is Sales Area specific. This level can be created, maintained or displayed in the Financial Accounting module through the “Maintain Centrally” menu path.
In the initial customer master record screen, the following information is entered: Customer (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 later. Reference - Copies information from an existing master record to the master record being created.
There are now two methods available for finding customers and vendors : A Quick Search using Central Address Management attributes such as name, street, and zip code. A Search by Attribute such as Company Code, Account Group, or Sales Group
The Account Group : Controls the numbering for the Customer 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. Number Ranges will e discussed in greater detail on the following slide. 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 Customer master records. Each Customer 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 Customer field of the Initial screen even if the number range is internally assigned. This feature allows a customer 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 Customer master record: Field status in the Customer Account Group: Determines the screen layout when creating a Customer 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 Customer 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 Customer 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 Customer master record. An example of a field status for an Activity Type would be to make the Reconciliation Account mandatory when creating a Customer 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 Customer 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 customer. 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 Customer master record includes Account Control fields such as: Vendor: If the customer is also a vendor, the Vendor Account number may be entered. This field is required for the Clearing with Vendor option to work (described later). Group Key: Also known as Corporate Group Key, this freely definable field can be used to group customers (and 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 customer belong.
The General Data (Client Level) section of the Customer master record includes Bank Details such as: Bank Key: The unique number of the customer’s bank from which the customer will remit payment. Bank Account: The account number of the bank account from which the customer will remit payment. Alternate Payee: Another customer will make payments for this particular customer. The payment obligation still rests with the customer who initiated the transaction; therefore, any transaction details will be recorded to that customer’s account not the payor’s account.
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 Customer master record: Reconciliation Account : The G/L Account that is updated along with the sub-ledger account (Customer) when a transaction involving the Customer 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 Customer account. Head Office : This field can be used to group Customer master records. The Customer 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 Customer master record: Payment Data: Payment Terms : Specify the discount terms and payment periods that make up the overall terms of payment (Discussed in later slides). Tolerance Groups : Determine the allowable deviation of customer payment (Discussed in later slides). For example, when a payment is received that is not equal to the open receivable, 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 vendor : When a customer is also a vendor, 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 Customer 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 Customer tolerance is assigned to each customer 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 customer and applies the most restrictive tolerance to determine what ultimately happens when an under/over payment is received/sent.
Sales Area data in the Customer master record is usually created and maintained by the Sales and Distribution Department. It includes data used in creating a sales order, establishing pricing, shipping, billing, payment and accounting. Order and Pricing data includes: The geographic location of the Sales District and Sales Office The Sales Group responsible for the sale The Pricing Group to which the Customer is assigned The Pricing Procedure used in Sales Order creation Shipping data includes: Delivery priority assigned to an item Shipping strategy for the delivery of goods to the customer Billing document includes: Payment Terms: This is the value that is defaulted when a Sales Order is created not the Company Code Payment Terms Account Assignment Group: Used as a criterion in automatic revenue account determination when booking revenue for a customer invoice (i.e., domestic, foreign or affiliated company revenue).
Customer master records - A master record that contains information about the Customer Account. It controls how business transactions are posted and managed. From a financial viewpoint, there are two levels of a Customer master record: Client level: Data at this level pertains to all Company Codes in which the Customer master record is opened. Company Code level: Company specific data is entered at this level and can vary for each Company Code. Sales Area level data - Data in the Customer master record that is usually created and maintained by the Sales and Distribution Department. It includes data used in creating a sales order, establishing pricing, shipping the product, issuing a bill, and processing payments and accounting information. 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 - The G/L Account that is updated along with the Customer sub-ledger account when a transaction involving a Customer is posted. Payment Terms - The discount terms and payment periods given to a customer.
Sort Key - A field in Customer master records that determines the field(s) used to populate the Assignment field in Document Line Items. They are configured by defining a Rule that can contain up to 18 characters from up to four fields. Tolerance Groups - Specify the accepted deviation of a customer payment. Payment Methods - Specify the acceptable types of payment such as a check, bill of exchange or wire transfer. Field Status - defines the field as being suppressed, displayed, required or optional during transaction entry. Field status in the Customer Account Group - A field status that determines the screen layout when creating a Customer master record. Field status for the Company Code - A field status that determines the screen layout only on the Company Code Level of the Customer master record. Field status for the Activity Type - A field status that determines the screen layout when creating, changing or displaying a Customer master record. Dual Control - A feature that requires a second person to confirm changes made to a master record.
SAP FI Customer Master Records | http://sapdocs.info
<ul><li>Customer master records contain information about the Customer Account that controls how business transactions are posted and managed. </li></ul><ul><li>Chapter Objectives </li></ul><ul><ul><li>Define the components of the Client and Company Code segments of the Customer master record. </li></ul></ul><ul><ul><li>Create a Customer master record. </li></ul></ul>Chapter 7 Customer Master Records
Creating a Customer Master Record Option 1. Create Client and Company Code Segments Option 2. Create Client, Company Code, and Sales Segments
Creating a Customer Master Record - Initial Screen
Search Help for Business Partners Quick Search by Address Search by Attribute
Field Status - Customer 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
Customer Master Records Chapter Summary <ul><li>Key Terms </li></ul><ul><ul><li>Customer Master Record </li></ul></ul><ul><ul><li>Client Level </li></ul></ul><ul><ul><li>Company Code Level </li></ul></ul><ul><ul><li>Sales Area Level </li></ul></ul><ul><ul><li>Account Group </li></ul></ul><ul><ul><li>Number Range </li></ul></ul><ul><ul><li>Reconciliation Account </li></ul></ul><ul><ul><li>Payment Terms </li></ul></ul>
<ul><li>Key Terms </li></ul><ul><ul><li>Sort Key </li></ul></ul><ul><ul><li>Tolerance Groups </li></ul></ul><ul><ul><li>Payment Methods </li></ul></ul><ul><ul><li>Field Status in the Customer Account Group </li></ul></ul><ul><ul><li>Field Status for the Company Code </li></ul></ul><ul><ul><li>Field Status for the Activity Type </li></ul></ul><ul><ul><li>Dual Control </li></ul></ul>Customer Master Records Chapter Summary (continued)