Standard Operating Procedure (SOP) for Vendor Creation in SAP

## Purpose
This SOP outlines the standardized process for creating vendors in SAP to ensure accuracy,
consistency, and compliance with the organization's procurement policies and procedures.

## Scope
This procedure applies to all personnel involved in vendor creation within the organization using the
SAP system.

## Responsibilities
- **Purchasing Department:** Responsible for initiating and submitting vendor creation requests.
- **Accounts Payable Department:** Responsible for reviewing and verifying vendor information
before approval.
- **SAP Administrator:** Responsible for creating and maintaining vendor master records in SAP.
- **Compliance Officer:** Responsible for ensuring that all vendors comply with the organization's
policies and legal requirements.

## Procedure

### 1. Vendor Creation Request

1.1. The purchasing department initiates a vendor creation request by filling out the "Vendor
Creation Request Form." This form should include:
- Vendor name and address.
- Contact information.
- Tax identification number (TIN) or other legal identifiers.
- Bank account information (if applicable).
- Any necessary supporting documentation, such as W-9 forms or contracts.

1.2. The purchasing department reviews the request to ensure it is complete and accurate.

### 2. Vendor Review and Approval

2.1. The accounts payable department receives the vendor creation request and reviews the
submitted information.

2.2. Accounts payable verifies the vendor's information against available databases, such as tax
records, credit reports, and the organization's internal records.

2.3. If the vendor information is accurate and compliant with company policies, accounts payable
approves the request. If discrepancies or issues arise, they must be resolved with the purchasing
department.

### 3. Vendor Master Data Creation in SAP

3.1. The SAP administrator logs into the SAP system and accesses the vendor master data creation
function.

3.2. The SAP administrator creates a new vendor master record in SAP using the information
provided in the vendor creation request form.

3.3. All mandatory fields in SAP must be filled out accurately, including:
 - Vendor name and address.
- Payment terms.
- Bank details.
- Tax information.
- Other relevant data.

3.4. The SAP administrator attaches scanned copies of any supporting documentation, such as
contracts or tax forms, to the vendor master record.

3.5. The SAP administrator assigns a unique vendor number to the newly created vendor.

### 4. Vendor Record Verification

4.1. The SAP administrator reviews the vendor master record for accuracy, ensuring that all data is
consistent with the vendor creation request.

4.2. Any discrepancies or errors must be corrected promptly, and the vendor master record updated
accordingly.

### 5. Vendor Approval and Notification

5.1. Once the vendor master record is complete and accurate, the SAP administrator submits the
record for final approval.

5.2. The SAP administrator notifies the purchasing department and accounts payable of the
successful vendor creation, providing the assigned vendor number.

### 6. Compliance Check

6.1. The compliance officer periodically reviews vendor master records to ensure ongoing
compliance with organizational policies and legal requirements.

6.2. Non-compliant vendors are flagged for corrective action.

## Documentation
All vendor creation requests, approvals, and supporting documents must be stored electronically for
auditing and reference purposes.

## Review and Revision

This SOP will be reviewed annually or as needed to ensure it remains up-to-date and aligned with
organizational policies and SAP configuration changes.

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Please adapt this SOP to your organization's specific needs, ensuring that it reflects your internal
processes and SAP configuration accurately. Additionally, consult with your SAP experts and legal
team to ensure compliance with relevant laws and regulations.