Unit 6

Materials Management (MM)

Master Data
Business Partner

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 Materials Management (MM)

Business Process Integration

Master
Data
M
M M
M

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 What is Business partner?
• A Business Partner can be a person,
organization, group of people, or a group of
organizations, in which a company has a
business interest.
• It is the single point of entry to create, edit,
and display the master data for business
partners, customers and vendors.
• A Business Partner consists of general data like
name, address, bank information, etc. as well
as role specific information i.e.
customer/vendor/employee data.
Person Organization Groups
Employee Vendor Government Entity
Customer Banks
Brokers
Carriers

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 BP Roles
• Which kind of BP is defined by BP Roles
• Many Partners can be BP
• The way we create a Partner is BP Roles i.e as per Business Process the
roles are defined

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Master Data in ECC

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Master Data in S4 HANA

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 Vendor Data Categories
• Enterprise main source of vendor specific data
• A master record must be created for every vendor
• Vendor Master Record will contain information like vendor's name,
address.
• Information is shared between the accounting and purchasing
departments
• Data in vendor master record is divided into three categories:

⮚ General Data: General data is maintained at client level and it is valid for all
organizational levels.
⮚ Accounting Data: Accounting data is maintained at company level and it is
valid for all plants belonging to that company.
⮚ Purchasing Data: Purchasing data is maintained at purchasing organization
level.

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 Materials Management (MM) Integration

Vendor Business Partner

Organization of the Data
BP Role : 000000
General Data Table :BUT000

BP Role : FLVN00
Company Code Data
Table: LFA1, LFB1
Financial Accounting (FI)

Purchasing Organization BP Role : FLVN01

Data (MM) Table : LFM1

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 Business Partner Customizing
• Step 1 Activation of PPO (Post Processing
Active) – (Optional) it is necessary to activate PPO in case you
want to trouble shoot the auto creation of BP through Synchronisation
cockpit.
– SPRO->IMG->Cross-Application Components–> Master Data
Synchronization –> Synchronization Control–> Synchronization Control
🡪Activate PPO Request for platform objects in the dialog

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 Business Partner Customizing
• Step 2 - Activate synchronization between
Business Partner and Customer/Vendor
SPRO->IMG->Cross-Application Components–>
Master Data Synchronization –> Synchronization
Control–> Activate Synchronization Options

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 Business Partner Customizing
• Step 3 -Define BP Roles
• SPRO->IMG->Cross-Application Components–> SAP Business
Partner–>Business Partner–> Basic Settings –> Business
Partner Roles–> Define BP Roles

BP Role Title Description

000000 Business Partner

Business Partner (Gen.) (General Data)
(Gen.)
FLVN00 Business Partner Vendor (Company
FI Vendor *
Code Data)
Business Partner Supplier (Purchasing
FLVN01 Purchase Vendor *
Data)

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 Business Partner Customizing
• Step 4 -Define Number Assignment for
Direction BP to Vendor/Customer
• SPRO->IMG->Cross-Application Components–> Master Data
Synchronization–>Customer/Vendor Integration –> Business Partner Settings –> Settings for
Vendor Integration –> Field Assignment for Vendor Integration–> Assign Keys🡪 Define
Number Assignment for Direction BP to Vendor

• Note : Maintain and select the check box if you want the
Business Partner number and Vendor number to be same. 12
 Business Partner Customizing
• Step 5 -Define BP Number Range and
assigning to BP Grouping
• SPRO->IMG->Cross-Application Components–> SAP Business Partner–> Business Partner–>
Basic Settings –>Number Ranges and Groupings 🡪 Define Number Ranges

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 Business Partner Customizing
• Step 5 –Define Groupings and Assign Number
Range
• SPRO->IMG->Cross-Application Components–> SAP Business Partner–> Business Partner–>
Basic Settings –>Number Ranges and Groupings 🡪 Define Groupings and Assign Number
Range

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 Business Partner Customizing
• Step 6 –Managing Fields in Vendor and
Customer Master.
• SPRO->IMG>Logistics general>Business partner>Supplier🡪 Control🡪 Define account grp and
field selection (Supplier)

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BUSINESS PARTNER Vendor and Customer
Integration.

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 Account Group (OMSG)
SPRO🡪 Logistics General 🡪 Business Partner 🡪 Vendors 🡪
Control 🡪 Define account group and file selection

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 Materials Management (MM)

Vendor Master
Purch. Org. Data – Account Group
• Vendor masters are assigned to a vendor
account group
• Through field status maintenance, vendor
account groups can be setup for one-time
vendors, regional vendors, and internal
vendors
• The vendor account group controls both type
and number range assignment for vendors

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 Vendor Master
Account Group- Types
 Materials Management (MM) Integration

Vendor Master
Typical Screens
• Address
• Control – has tax and accounting information
• Payment Transactions - Who makes the payments (bank or
alternative payee)
• Accounting Information
• Correspondence - Who and how to contact the people in the
purchasing Org
• If the vendor is also your customer then enter the customer
number created by sales department.
• Purchasing Data -Who is the sales person, What conditions,
terms, Incoterms (International Commercial Terms)
• Partner Functions -Defines who is responsible for what action.

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 Materials Management (MM)

Vendor Master
General Data – Address

General Data – Address

Address
Vendor Name
Search Term
Street address
City, Region Postal code
Country
Communication
Language
Telephone, Fax, E-Mail

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 Materials Management (MM) Integration

Vendor Master
General Data – Control Data
• Account Control
– Customer
– Authorization
– Trading partner
– Group key (Corporate Group)
• Tax Information
– Tax codes
– Country code
– City code

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 Materials Management (MM)

Vendor Master
General Data – Payment Transactions
• Bank Details
– Bank Account
– Account Holder
• Payment Transactions
– Alternative Payee

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 Materials Management (MM)
Vendor Master
Company Code – Accounting Information
• Accounting Information
– Reconciliation Account
– Sort Key
– Release Group
• Interest Calculation
– Interest Calculation Indication
– Interest Calculation Frequency
• Withholding Tax
– Withholding Tax Code
– Exemption Number

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 Materials Management (MM)

Vendor Master
Company Code – Payment Transactions
• Payment Data
– Payment Terms
– Tolerance Group
– Check Double Invoice
• Automatic Payment Transactions
– Payment Methods
– Alternate Payee
– Payment Block
• Invoice Verification
– Tolerance Group

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 Materials Management (MM)

Vendor Master
Company Code – Corr. Accounting
• Dunning Data
– To remind vendors to deliver the material from the
purchase orders
• Correspondence
– Accounting Clerk
– Account With Vendor
• used to identify the company
– Clerk at vendor
• the contact person at the vendor side

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 Materials Management (MM)

Vendor Master
Purch. Org. Data – Purchasing Data
• Conditions
– Order Currency
– Terms of Payment
– Incoterms
– Minimum Order Value
• Sales Data
– Salesperson
• Control Data
– Acknowledgement Required
• To indicate if acknowledgement is required upon receipt of the order
– Automatic Purchase Order
• To allow automatic issuance of purchase order
• Default Data Material
– Purchasing Group
– Planned Delivery Time

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 Materials Management (MM)

Vendor Master
Purch. Org. Data – Partner Functions
• Partner Functions
– Partner Function
• Used to define the relationships between the vendor (or customer) and
the company.
– Partner Name
– AZ alternative payment recipient
– CA contract address
– CP contact person
– ER employee responsible
– GS goods supplier
– OA ordering address
– PI invoice presented by
– VN vendor
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 Partner Roles
• SPRO🡪 Materials Management 🡪 Purchasing 🡪
Partner Determination 🡪 Partner Roles 🡪
Define Partner Roles
Function/ Roles Description NoT (Type of
Partner)-Partner
Schema
VN Vendor LI (Vendor)
GS Goods Supplier LI
OA Ordering Address LI
IP Invoice Presented LI
By
FA Forwarding Agent LI
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 Partner Schema
• Set of Partner Roles/Partner Functions defines a
Partner Schema.
• While Defining Partner Schema, Partner
Roles/Partner Functions can be made Mandatory
• Partner Schema is then assigned to Account Group.
• While Creating Vendor Master Data using specific
Vendor Group, only the specific Partner Roles
assigned to assigned partner schema will be
allowed to assign in Partner Function Tab.

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So What is a Reconciliation Account?

• Postings to sub-ledgers (such as accounts

receivable or accounts payable) are
automatically concurrently posted to the
corresponding reconciliation account in the
General Ledger
• In this way, the General Ledger is automatically
updated and remains in balance with the
customer and vendor individual account totals

January 2006 34
Materials Management (MM) Financial Accounting (FI)

Accounts Payable Integration

Reconciliation Account
Vendor 100234 Vendor 100435
Accounts Payable
200 250 Reconciliation

950

Vendor 100621 Vendor 100846

100 300

January 2006 © SAP AG and The 35

Rushmore Group, LLC 2006
 Check GL Account Balances
• Check Vendor Account Balances
• Accounting 🡪 Financial Accounting🡪 Accounts Payable 🡪 Account 🡪 Display Balances
(FK10N)
• Check Document Types
– SPRO🡪 Financial Accounting 🡪 Accounts Receivable and Accounts Payable 🡪 Business
Transactions 🡪 Down Payment Made 🡪 Make and Change document settings 🡪 Define
Document types (OBA7)
Document Type Description
KZ Vendor Payment
RE Vendor Invoice
• Check Reconciliation Account Balances
– Accounting 🡪 Financial Accounting🡪 General Ledger🡪
Account 🡪 Display Balances (FAGLB03)

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Vendor Master Record

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 Structure of the Vendor Master Record
sections utilization area of validity

❑ General data
• name
• address client wide
• Phone numbers

❑ purchasing • request for quotation for each

• terms and cond. •
• partner functions quotation processing purchasing
• currency • purch. order handling organization

❑ accounting data • invoice entry client wide or

• bank account
• acc. maintenance • invoice verification for each
• payment • payment handling company code