BUSINESS PROCESS PROCEDURE

File Name:
Responsibility:

Title:
Organization/Area

Create Vendor Master Record

External Accounting / Vendor Processing

260420965.doc
Purchasing or Accounting

Release:
Status:

R/3 4.6C

Overview
Trigger:
Create a Vendor Master Record
Business Process Description Overview
All vendor data is stored in the vendor master record and controls how transaction data is posted to a vendor.
Vendor master data is used not only by the accounting department but also by the purchasing/materials management department. When
setting up your master records, you have the option to create the accounting and materials management sections separately, each in its
own application area, or together by creating the vendor master centrally.
Creating/storing vendor master records centrally permits common access and requires data entry only once avoiding
contradictory/redundant data. If a vendor's address has changed, for example, you need to enter the change only once, and both the
accounting department and the purchasing department will have access to the most current data.
A vendor master record includes data such as:

vendor name, address, language, and phone numbers

tax numbers

bank data

account control data, such as the G/L reconciliation account for the vendor account

payment methods and terms of payment as agreed with the vendor

purchasing data
This process describes creating the accounting section of the vendor master record.

Input Required Fields

Company Code
Account Group
Name
Search Term
Street
Postal Code or PO Box P Code
Country
Region (State)
Language
Reconciliation Account

Comments

Output Results
Vendor Master Data created

Comments

Tips and Tricks

BUSINESS PROCESS PROCEDURE

File Name:
Responsibility:

Title:
Organization/Area

Create Vendor Master Record

External Accounting / Vendor Processing

260420965.doc
Purchasing or Accounting

Release:
Status:

R/3 4.6C

Procedural Steps
1.1.

Access transaction by:

Accounting Financial Accounting Accounts Payable Master records
Create
FK01

Via Menus
Via Transaction Code

1.2.

On screen Create Vendor: Initial Screen, enter information in the fields as specified in
the below table:

Field Name
Vendor

Description
If you use external number assignment, enter the
vendor's account number. If you use internal
number assignment, the system assigns a
number when you save the master data.

R/O/C
O

Company code

the company code ID

System Default

Account group

A classifying feature within the vendor master

record which determines if the vendor account
number will be assigned internally or externally
and which fields are proposed for input
Vendor account number being used as a
reference as an alternative way to create a vendor
account

Pull down menu available

Vendor specific data of the

referenced vendor such as
address is not carried over. The
data from the referenced vendor is
used for default values and it is
suggested that all screens be
reviewed before saving any data

The company code associated with the

referenced vendor

REFERENCE/
Vendor
Account

REFERENCE/

User Action and Values

Comments

Company Code

(Note: On above table, in column R/O/C, R= Required, O= Optional C= Conditional)

Click on
1.3.

to proceed to the next screen

On screen Create Vendor: Address, enter information in the fields as specified in the
table below:

Field Name

Description

R/O/C
R

Name

Vendor name

Search term

Short name which is used to set up a

match code

Street

Street address

City

City

Postal code or
PO box

Zip code

Country

Two digit country identifier

Region (state)

Two letter state abbreviation

User Action and Values

Comments

BUSINESS PROCESS PROCEDURE

File Name:
Responsibility:

Title:
Organization/Area

Create Vendor Master Record

External Accounting / Vendor Processing

260420965.doc
Purchasing or Accounting

Release:
Status:

Language

One letter language code

Click on

to proceed to the next screen

1.4.

R/3 4.6C

System
Default

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

Field Name

Description

R/O/C
R

User Action and Values

The field Clrg. With Cust.
must also be checked in the
company code Payment
Transactions section if you
want to collectively manage
vendor/customer open items.

Customer

If the vendor is also a customer, use this field to link the

two records together for line item display and
transaction processing

Group Key

If the vendor belongs to a group, you can enter a freely

assigned group key here. If you create a match code
using this group key, group evaluations are possible.

Tax code 1&2

Tax Numbers of the customer/vendor that is used for

reporting to the tax authorities

Reference
Data/Industry

Industry key used to group vendors by industry

For reporting purposes

Reference
Data/SCAC

Standard Access Carrier Code is a indicator used in

Unique code for identifying a

forwarding agent

Reference
Data/Car.
Freight Group

The forwarding agent freight group is used to group

forwarding agents to determine a freight group set

This code is used to define

freight codes and class for
calculating freight costs and
communication with service
agents

Reference
Data/Service
Agent
Procedure
Group

Used for determining the pricing procedure for shipment

cost calculation

Click on

to proceed to the next screen

1.5.

Comments

North America to identify forwarding agents

On screen Create Vendor: Payment Transactions, enter the vendors banking

information if applicable (e.g. for wire transfers):

Field Name

Description

R/O/C
R

Ctry

Bank country key

Bank Key

Key under which bank data in the respective country is

stored

Account Holder

Another name that the payment program can use if the

name of the account holder is not the same as the name

User Action and Values

Drilldown available

Comments

BUSINESS PROCESS PROCEDURE

File Name:
Responsibility:

Title:
Organization/Area

Create Vendor Master Record

External Accounting / Vendor Processing

260420965.doc
Purchasing or Accounting

Release:
Status:

R/3 4.6C

of the vendor

Bank Account

The number at the bank under which the account is

managed

CK

Indicator as to whether account is a checking or savings

account

BnkT

Key for which business partners bank the system

should use

Reference
Details

Additional specifications for the bank details of the

vendor

Alternative
Payee

The alternative vendors account number

DME Indicator

Note: Not Applicable in U.S.

Instruction Key

Note: Not Applicable in U.S.

PBC/POR
Number

Note: Not Applicable in U.S.

Alternative
Payee in
Document/Indi
vidual Spec.
indicator

If this indicator is set, you can enter address or bank

details for automatic payment transactions in the
document which differ from those in the master record.

Permitted
Payee

Specifies the permitted alternative payees for the

vendor.

1.6.

Business Partners defined by

role within organization
e.g. proprietor bank of a the
owner of a vendor

This field is used only if the

payment is to be made to a
separate vendor.

On screen Create Vendor: Accounting Information Accounting, enter information in the

fields as specified in the below table:

Field Name

Description

R/O/C
R

Reconciliation
account

Account which is updated parallel to the sub-ledger

account for normal postings

Sort key

This field determines how the allocation field is

populated during document entry. When displaying
line items, the line items are sorted initially by the
allocation field.

Withholding tax
code

Withholding tax codes differ according to country and

are used for reporting to the tax authorities.

Reference
Data/ Prev.
acct. no.

If you renumber the vendors master record number

you can store the previous or legacy account number
here.

Click on

to proceed to the next screen

User Action and Values

For US vendors, specify a tax

code if the vendor is subject to
1099 reporting.

Comments

BUSINESS PROCESS PROCEDURE

File Name:
Responsibility:

1.7.

Title:
Organization/Area

Create Vendor Master Record

External Accounting / Vendor Processing

260420965.doc
Purchasing or Accounting

Release:
Status:

R/3 4.6C

On screen Create Vendor: Payment Transactions Accounting. Eenter information in the

optional fields as applicable:

Field Name

Description

R/O/C
O

Payment
Terms

Key for defining payment terms composed of cash

discount percentages and payment periods

Chk double
inv.

Indicator which means that incoming invoices and

credit memos are checked for double entries at the
time of entry.

Payment
Methods

Different methods by which the vendor can be paid

using the automatic payment program

Alternative
Payee

The alternative vendors account number

Payment
Block

Block key used to block an open item or an account for

payment transactions.

Clrg with
cust.

Indicator signifying the vendor open items should be

processed collectively with customer open items.

Automatic
Payment
Transactions/
Pyt. Advice by
EDI

This indicator is used to identify that the vendor should

be sent all payment advice by EDI

Click on
1.8.

User Action and Values

This field is used only if the

payment is to be made to a
separate vendor.

This indicator will only display if

a customer account is specified
in the Control section of master
record.

to proceed to the next screen

To save the Vendor Master Record, select Vendor Save.

Comments