Metaphor Consulting Provides Vendor Master Training on Material Management Module. Metaphor Consulting also provide corporate training on below module... SAP Course’s Offers: SAP ABAP / BASAIS SAP BW / BI / BO SAP HANA SAP FI / CO SAP PP / QM SAP PM / PS SAP SD / MM

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Vendor Master
Definition
Vendor master data is required for creating purchasing documents. Vendor master records contain
information on the vendors (external suppliers) of an enterprise. Vendor master data is integrated with
finance and material management modules. Single vendor master can be used for procurement of
material and services, if same is supplying various materials or services.
Prerequisites
Account Group is to be selected for creation of vendor master.
The account group determines
 The data that is relevant for the master record
 Vendor Status (one-time or regular vendor)
The following account Groups for example:
0001 Vendor
0007 Plants
0099 One-time vendors
Procedure
Data in the vendor master record is subdivided into three categories.
a) General data:
This data is valid for the whole client. This includes the vendor's address and bank details etc.
b) Company Code Data:
Company code data only applies to one company code. This data is only relevant to Financial
Accounting, and includes:
i. Account management data
Edit a master record; we must specify the vendor number and company code to access the screens
containing company code data.
c) Purchasing organization data
The data for one vendor can differ for each purchasing organization. This data is only relevant to
Purchasing, and includes:
i. Purchasing data
ii. Partner functions
Vendor Master Data:
 Vendor master records contain information on the vendors (external suppliers) of an
enterprise.
 Data in the vendor master record is subdivided into three categories:
 General data: This includes the vendor's address and bank details, for example. This
data is valid for the whole client.

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 Purchasing data: This includes the purchase order currency, incoterms, and the
vendor's tax data. This data is maintained for each purchasing organization. You can
also maintain different data on a plant-dependent basis or for vendor sub-ranges.
 Accounting data: This comprises data such as the number of the reconciliation
account and the payment methods for automatic payment transactions. This is
maintained at company code level.
 You can block a vendor master record, for example, if the quality of the vendor's products is
poor.
 You can block a vendor for an individual material via the source list.
Purchasing Data – Vendor Master
 Control parameters for purchasing operations are defined at the purchasing organization
level.
 Accounting data in the vendor master record is defined at the company code level.
 Data that applies to a purchasing organization can be maintained differently for a specific
plant. Such data includes the Automatic PO allowed indicator.

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Vendor Master – Account Grouping
 Account Group is to be selected for creation of vendor master
 The account group determines
 The data that is relevant for the master record
 A number range from which numbers are selected for the master records
 Field Selection
 Vendor Status (one-time or regular vendor)

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Partner Roles - Vendor Master
 The vendor can have various functions in its interaction with your company.
 During the procurement transaction the vendor is the order recipient,
 then the supplier of goods,
 the invoicing party,
 And finally, the payee.
 By maintaining partner roles in the vendor master record, you can distribute one or more of
these roles among different vendor master records.
One Time Vendor
 A term for a collective vendor master record used for processing transactions with vendors
with whom you do not regularly do business.
 If an RFQ or a PO is sent to a one-time vendor, you must enter the vendor data manually.

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Vendor Master can be created in two ways:
1st method:
 All Purchase related data can be created with transaction code MK01. With this transaction
code, user cannot create data relevant to Finance.
 All finance related data can be created with transaction code FK01. If this method is adopted
in the Company, there should be regular communication between Purchase and Finance
departments on all the changes made in Vendor Master.
2nd method:
 Complete data, Purchase related data and finance related data can be created centrally with
transaction code XK01.
 In this manual process of creating Vendor Master centrally is described.
TRANSACTIONAL STEPS
No. STEPS TRANS.
CODE
INPUT DATA OUTPUT DATA /
RESULT
1 Create Vendor
Master
XK01 i) Company Code
ii) Purchase Organization
iii) Account Group
iv) Name
v) Address
vi) Communication details
vii) Reconciliation Account
(mandatory)
viii) Payment Terms
ix) Order Currency
x) Other control data in
purchasing
Vendor Master is created
with vendor code
“yyyyyy”
2 Display
Vendor
XK03 i) Vendor Code
ii) Purchase Organization
iii) Company Code
iv) Select the views to be
displayed
All Data is displayed for
Vendor Code “yyyyyy”
3 Change
Vendor
XK02 i) Vendor Code
ii) Purchase Organization
iii) Company Code
Select the views to be changed
make the necessary
changes
SAP Demo:
1. Access Transaction by
Via Menus Logistics > Materials management > Purchasing > Master data > Vendor >
Central > Create
Via Transaction Code XK01
2. On screen “Create Vendor: Initial Screen”, enter information in the fields as specified in the below
table:

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(Note: On above table, in column “R/O/C”; “R” = Required, “O” = Optional, “C” = Conditional)
3. Click on the Enter button.
4. On screen “Create Vendor: Address Screen”, enter information in the fields as specified in the table
below:

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(Note: On above table, in column “R/O/C”; “R” = Required, “O” = Optional, “C” = Conditional)
5. Click on the Enter button.

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6. On screen “Create Vendor: Control”, enter information in the optional fields as applicable in the
table below:

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(Note: On above table, in column “R/O/C”; “R” = Required, “O” = Optional, “C” = Conditional)
7. Click on the Enter button
8. On screen “Create Vendor: Payment Transactions”, enter the vendor’s banking information if
applicable:

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9. Click on the Enter button.
10. On screen “Create Vendor: Contact Persons”, enter information in the fields as specified in the
below table:
(Note: On above table, in column “R/O/C”; “R” = Required, “O” = Optional, “C” = Conditional)

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11. Click on the Enter button.
12. On screen “Create Vendor: Accounting Information Accounting”, enter information in the fields as
specified in the below table:
(Note: On above table, in column “R/O/C”; “R” = Required, “O” = Optional, “C” = Conditional)

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13. Click on the Enter button.
14. On screen “Create Vendor: Payment Transactions Accounting”, enter information in the optional
fields as applicable:

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(Note: On above table, in column “R/O/C”; “R” = Required, “O” = Optional, “C” = Conditional)
15. Click on the Enter button.
16. On screen “Create Vendor: Correspondence Accounting:, enter information in the fields as
specified in the table below.

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(Note: On above table, in column “R/O/C”; “R” = Required, “O” = Optional, “C” = Conditional)
17. Click on the Enter button.
18. On screen “Withholding tax-accounting“; enter information in the fields as specified in the table
below.

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(Note: On above table, in column “R/O/C”; “R” = Required, “O” = Optional, “C” = Conditional)
19. Click on the Enter button.
20. On screen Create Vendor: Purchasing Data, Enter information in the fields as specified in the
below table:

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(Note: On above table, in column “R/O/C”; “R” = Required, “O” = Optional, “C” = Conditional)
21. Click on the Enter button.
22. When all information has been entered, the system will prompt the user to save the information.
Select the „Yes‟ option. Click on the Enter button.
23. The system will create and post vendor number in the message box at bottom of screen.
Result
Vendor Master will be created as per number ranges defined.