Vendor Master Data

Master data comprises data records that are stored in the database for a long period of time. This avoids data redundancy problems.

There are three most important master data:

1. Vendor Master  
2. Material Master
3. Purchasing Info Record

Vendor master record contain information about company's vendors. They not only contain general data of vendor but also information required for accounting purposes. As a result, vendor master records are maintained by both Purchasing and Accounting department. 

The vendor master record is subdivided into following categories:

You can decide whether vendor master records are to be maintained centrally(i.e. all data is maintained together) or decentralized basis(i.e. the relevant departments each maintain their own data).

With the help of transaction MK01(create), MK02(change), MK03(display) , you will be only able to maintain to general address and control data, and the purchasing specific data. Accounting personnel must enter the payment transaction data and the company code specific data.

However, you can also give your staff authorization to maintain the vendor master data under the menu path XK01(create), XK02(change), XK03(diplay). Staff can edit all the data in the vendor master record.

Account Group:

Account group is the important data in vendor master record. This has many control functions as stated below:

1. To display screens and fields that are relevant for the the business partner.
2. The type of number assignment (internal/external) 
3. The field selection: which fields are ready for input , which fields must be maintained, which fields are hidden
4. Which partner schemas are valid

One time vendor: 

One time vendors used in purchasing documents and invoices where no separate master record exists for a vendor. This enables you to work without vendor specific master record if you want to procure material or services from vendor only once. You can use this for several vendors. No vendor specific data such as an address and bank details are stored for one time vendors. When purchasing and invoicing documents are created for one time vendor, the system automatically opens an additional screen. This is where you enter the specific data, such as vendor's name, address, and bank details.

Reconciliation Account: 

When you create a vendor master record, you need a unique number for the creditor. This is assigned either automatically or manually by the administrator, depend on account group. 

The reconciliation account is G/L account in G/L accounting. 

Partner Roles:

The business partner vendor can assume various roles in your company. For example, during the procurement transaction, the vendor is first the order recipient., then goods supplier, and finally invoicing party. 

Blocking Vendors:

In some cases, such as quality issues, you may want to block particular vendor. You can block vendors from vendor master record itself. Once you have set blocking indicator in vendor master record, purchase orders can not be places with the vendor until you deselect blocking indicator. 

You can also decide whether to block a vendor for one purchasing organization or for all. You also have option to block for quality reasons, which is effective for materials for which quality management is active in purchasing. The blocking function used here also determines which procurement functions ( such as RFQ, or purchase order) is to be blocked for quality reasons.