SAPMM- S/4 HANA Business Partners1. Vendor account group 2. Maintain Field Status Group3. Define Number Ranges for Vendor Account Group4. Assigning Number Ranges to Vendor Account Groups5. Configuration in a Business Partner6. Defining and Assigning Number Ranges7. Defining Business Partner Role Categories8. Customer/Vendor Integration9. Defining the Business Partner Role for Vendor to Business Partner10. Business Partner Types11. Partner Functions 12. Vendor Subrange Functionality13. Reconciliation Account14. Payment Terms15. Incoterms16. Business Partner Relationships

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Business Partners

In SAP S/4HANA, the business partner has become the leading object and the single point of entry to maintain supplier (formerly known as vendor) and customer master data. This approach makes master data maintenance easier and achieves harmonization among the various business functions of a company. Compared to SAP ERP transactions, maintaining supplier and customer master data through the business partner offers the following advantages:

• A legal entity is represented with one business partner.• A business partner allows the maintenance of multiple addresses for various uses.• In SAP ERP, one supplier or customer could only be associated to one vendor account group. With business partners, multiple roles can be

associated to the same business partner.• Maximal data sharing and reuse of data leads to an easier and simplified data consolidation.• The general data of a business partner is available for different business partner roles, while specific data is stored for each role.• Multiple relationships to the same business partner can be maintained.• Time dependency at different sub entities (i.e., roles, address, relationship, bank data) can be maintained.• A business partner can be a person or a group of persons or an organization having some interest in the company’s business. You can

create a business partner in different business partner roles.

Example - you can interact with business partner number 10000 as a customer in a customer role and as a vendor in a vendor role. In this way, a business partner can play multiple roles.

CVI is SAP's way of converting business partner data into customer and vendor master data, and vice versa. The conversion itself is done automatically as soon as you save a new or amended BP – the relevant data is written out to the customer and vendor master data tables

Customer/vendor integration (CVI) for business partners is a mandatory prerequisite in SAP S/4HANA.

Vendor account group

vendor account group to creating and assigning a number range to this new vendor account group are covered

In SAP implementation, commonly, separate vendor account groups are created for foreign/import vendors, local vendors, and service vendors.

A vendor account group is a way of grouping vendors with the same number range and the same attributes entered. The account group is defined to allow certain fields to be seen and maintained on the vendor master.

A one-time vendor - one-time vendor record A one-time vendor record can be created in the same way as any normal vendor by using Transaction BP. The difference is that a one-time vendor uses a special account group. One-time vendor records don’t usually contain any significant data or any bank and financial information. Many companies have policies in place to ensure that vendor master records aren’t created for one-time or limited-use vendors.

To create a new vendor account group, follow the menu path SPRO - Financial Accounting- (New) - Accounts Receivable and Accounts Payable - Vendor Accounts - Master Data -Preparations for Creating Vendor Master Data - Define Account Groups with Screen Layout (Vendors).

create a new vendor account group, Group HVPV, and then double-click on the Details icon.

To maintain the Field status of any fieldGeneral DataCompany Code DataPurchasing Data

Fields Control of Vendor Account Group

Maintain Field Status Group

It allows you to make certain fields

required (Req. Entry), optional (Opt.

entry), display only (Display), or

suppressed (Suppress).

This configuration is specific to the

account group that is entered when a

vendor

master record is created.

Define Number Ranges for Vendor Account Group - When defining vendor number ranges, remember that vendor numbers, like material numbers, can be externally or internally assigned. Many SAP customers create different number ranges for each account group. Careful consideration is required when defining number ranges to prevent number ranges from overlapping.

follow the menu path SPRO-Financial Accounting (New) - Vendor Accounts - Master Data - Preparations for CreatingVendor Master Data - Create Number Ranges for Vendor Accounts.

T – Code XKN1

you should enter a unique identifier for the range, defined

by a two-character field,

Assigning Number Ranges to Vendor Account Groups

SPRO-Financial Accounting (New) - Vendor Accounts - MasterData - Preparations for Creating Vendor Master Data - Assign Number Ranges to VendorAccount Groups.

Configuration in a Business Partner

Defining and Assigning Number Ranges

SPRO-Cross-Application Components -SAP Business Partner - Business Partner - Basic Settings - Define NumberRanges

SPRO -Cross-ApplicationComponents - SAP Business Partner -Business Partner - Basic Settings - Define Groupings and Assign Number Ranges.

Defining Business Partner Role Categories

by copying from the

standard available

business partner category

FLVN01.

Menu path Cross-Application Components - SAP Business Partner - Business Partner -Basic Settings - Define BP Roles

the new BPRole Cat. as ZHVPRC

Maintain the Title and Description fields of the new business

partner role category ZHVPRC

Differentiation Type 2 as we want to create a new business partner role category for the purchasing function.

Business Partner

Role Category

ZHVPRC

BP Role Category ZHVPRC just created in the previous step. Be sure theStd Assignment BP Role -> BP Role Cat. checkbox has been selected so that the systemassigns this specific business partner role ZHVP01 to the business partner role category ZHVPRC.

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Finally, select the BP Role Category -- > Business Transaction

enter the BP Role Category “ZHVPRC” and click Continue

Allowed Business Transactions for Business Partner Role Category

Field Attributes for Business Partner Role Category

follow the menu path Cross Application Components - SAP Business Partner - Field Groupings - Configure FieldAttributes per BP Role - Configure Field Attributes for Each Role Category.

BP Role ZHVP01 and then click Field Grouping.

You can control the fields’ attributes. This configuration screen allows you to make certain fields required (Req. Entry), optional (Opt. entry), display only (Display), or suppressed (Hide). This configuration is specific to the business partner role that is entered when a vendor master record is created.

Customer/Vendor Integration

Setting up customer/vendor integration (CVI) is a mandatory prerequisite for using business partners in SAP S/4HANA

Setting the Business Partner Role Category for Business Partner to Vendor

Follow the menu path Master Data Synchronization-Customer/Vendor Integration - Business Partner Settings - Settings for Vendor Integration- Set BP RoleCategory for Direction BP to Vendor

Defining the Business Partner Role for Vendor to Business Partner

Note: - The vendor account groups in FI have been created. The business partner roles have been defined with relevant settings already made.

Menu path Master Data Synchronization -Customer/Vendor Integration -Business Partner Settings -Settings for Vendor Integration -Define BP Role for Direction Vendor to BP.

business partner group (Group) HVPV has been assigned to multiple business partner roles, such as FLVN00, FLVN01, and ZHVP01.

Defining Number Assignments for Business Partner to Vendor

Menu path 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.

Partner Grouping HVPV has been assigned the vendor account group (Account group) HVPV

when you create the vendor master record, set the Same Numbers indicator

Defining Number Assignments for Vendor to Business Partner

Number ranges and groupings for business partners are in place. Number ranges and groupings for vendor account groups are in place.

Menu path 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 Vendor to BP.

Business Partner Types

Menu path Cross-Application Components SAP Business Partner Business Partner Basic Settings Define Business Partner Types.

Partner Type ZHVP

Partner Functions

A purchasing user to define the relationships between vendors of particular account group and partner functions. A vendor can vary in size from a sole proprietor to a large multinational company

Selection of available vendor partner codes

A partner function allows the purchasing department to determine what functions a vendor performs within a larger vendor organization. For example, a multinational auto parts manufacturer may supply material to your company, so you’ve created a vendor number (VN) for them. However, the address to which you send the POs may be a separate address in a separate division of the manufacturer’s business. Therefore, you’ll create a vendor number for the ordering address (OA), and Partner Code Description 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 Table 6.1 List of Partner Functions Personal Copy for Prakash Swayam, prakash.gberp@gmail.com 6 Business Partners 226 that record will be entered into the Partner function screen for the VN Vendor. Further, you may need to manage a separate contact address (CA) for a vendor that supplies the invoices (PI) and an alternative payee (AZ). All of these can be created and entered into the Partner functions screen of the VN partner

List of Partner Functions

Menu path Materials Management Purchasing Partner Determination Partner Roles Define Permissible Partner Roles per Account Group.

Vendor Subrange Functionality

The vendor subrange (VSR) functionality can be used to subdivide a vendor’s products into different ranges. For example, a vendor could be an office supply company, and subranges could be divided into computer media, paper products, and ink products. The VSR functionality can be entered into the purchasing information record of a particular vendor/material combination. The allocation of a material to a certain VSR allows the vendor to see items sorted on its PO in subrange order.Configuration is required to enable VSRs. Transaction OMSG allows you to edit vendor account groups. The indicator can be set to enable VSRs for that vendor account group.

To setup vendor subrange, use Transaction OMSG or follow the navigation pathLogistics – General - Business Partner - Vendor – Control - Define Account Groups andField Selection.

Maintaining a Business Partner • 000000: General• FLV001: Vendor FI• ZHVPV01: High-value purchases vendors (a copy of the standard business partner FLVN01)

Business Partner General DataT code- BP

Menu path Logistics SCM Extended Warehouse Management Extended Warehouse Management Master Data Maintain Business Partner.

click Create Organization.

Choose the Grouping HVPV from the dropdown menu we configured in the previous section. While creating a new business partner, the Create in BP role automatically selects the business partner role 000000 Business Partner (Gen.),

Control

Assign the BP Type ZHVP

Payment Transactions tab with options for maintaining the bank and payment details of a vendor

Status tab for blocking or locking a vendor

Note - A vendor master record can also be blocked by using Transaction MK05 or by following the navigation path Logistics-Materials Management -Purchasing -Master Data - Vendor Purchasing - Block

Extending Business Partner as FI Vendors

Choose the standard business partner role FIVN00 FI Vendor (New) available from the Change in BP role dropdown list.

First click the Company Codes button Also maintain the Reconciliation acct field for the vendor, which is mandatory

first click Create and then enter “1000” in the Company

code

field,

Assigning a Company Code and Reconciliation

Account to a Business Partner

Reconciliation Account

The reconciliation account (Reconciliation acct) is an

individual general ledger (G/L)

account. A reconciliation account is recorded in line item

detail in the subledger and

summarized in the G/L. The detailed information entered

into the reconciliation

account is all line item data from the vendor account.

These reconciliation accounts

in the subledger are important and must be maintained for

vendors, for customers,

and for asset accounts.

Reconciliation in the G/L occurs at the summary level and

is used to reconcile against

the vendor account at the total level. However, the

subledger can be used to identify

line item data if necessary.

Head Office

This field allows an entry of a vendor number, which represents the head office or master account for this vendor.

Payments are made from the head office account, whereas purchase orders (POs), deliveries, or invoices may be

posted to branch accounts.

Sort Key

The Sort key allows you to select a sort for the allocation field. The system sorts the document line items based on the

key entered in the allocation field. Therefore, if you select Sort key 008, then the sort of the line items will be by

allocation 008, which is by cost center.

Authorization Group

The Authorization group is a way of increasing security on certain objects. Entering an authorization group in this field

restricts access to the object to those users who have this authorization group in their SAP profiles.

Release Group

A release approval group can be defined and configured to allow only those in the group to be able to be released for

payment. The Release group can be configured by following the navigation path Financial Accounting- Accounts

Receivable and Accounts Payable- Business Transactions -Release for Payment - Define Release Approval Groups

for Release for Payment.

Minority IndicatorThe Minority indic. field is only relevant for implementations in the United States. Federal and local officials may request information on the number of minority vendors supplying material to a company. Configuration is required to enter the relevant information because the fields are not predefined

Certification Date for Minority Vendors

The certification expiration date for the minority vendor field is only relevant for implementations in the United States. The

certification for a minority vendor has an expiration date, which is required to be entered for the US government.

Payment Terms Payment terms provide clear details about the expected payment on a sale. Often, payment terms are included on an invoice and specify how much time the buyer has to make payment on the purchase.

Navigation path Financial Accounting (New)- Accounts Receivable and Accounts Payable- Business Transactions -

Incoming Invoices/Credit Memos-Maintain Terms of Payment

Tolerance Group

A tolerance is a percentage or a value that represents the limit to which an event can deviate. For example, a tolerance of 10%

on a line item that is expected deliver 100 units will allow a delivery of 109, which is under the 10% tolerance. A delivery of 111

won’t be allowed because this value is over the 10% tolerance limit. A tolerance group is a set of tolerances that can be

configured and assigned to a specific vendor, if necessary.

Account Statement Indicator when the vendor will receive periodic statements. The vendor may receive them weekly, monthly, or yearly.

Purchasing-related options, including their associated tabs, are now available to

maintain. Click the Purchasing Organizations button

we defined purchasing organization 1000 as a reference

organization to the purchasing organization 6000. Thus,

maintaining purchasing

organization 1000 is required to ensure the procurement

process runs even only

purchasing organization 6000 is involved. If no reference

purchasing organization

exists in the SAP system, then maintaining its data isn’t

necessary either.

Purchasing Data Details for Purchasing Organization

6000

An incoterm represents a universal term that defines a transaction between importer and exporter so that both parties understand the tasks, costs, risks, and responsibilities, as well as the logistics and transportation management from the exit of the product to the reception by the importing country. Incoterms are all the possible ways of distributing responsibilities and obligations between two parties. It is important for the buyer and seller to pre-define the responsibilities and obligations for the transport of the goods.

Unit of Measure Group

The Unit of measure grp defines the allowed units of measure (UoM)s, which defined as part of a unit of measure group. This information should be entered when a rounding profile is used. The unit of measure group is configured in the IMG by following the navigation path

Materials Management - Purchasing - Order Optimizing - Quantity Optimizing and Allowed Logistics Units of Measure - Unit of Measure Groups.

Order Entry by VendorWhen this indicator is set, the vendor is responsible for entering the PO. The order can be created in the background via an EDI order confirmation received from the vendor.

Vendor Service LevelThis field is used for automatic PO-based load building. If the service level drops below the desired value, SAP will try to order an entire load of goods from this vendor.

The various partner functions, such as

the supplier and invoicing

party, which were previously

configured and are now assigned

automatically. Save

the business partner.

Sales DataThe Sales data refers to the sales department person at the vendor who deals with your company. Most vendors will have a contract person whose information should be entered into this section.

Maintaining Business Partner Relationships

For example business partner 20000012. Click on the relationships icon. To create a new business partner relationship, choose from the available business partner relationships from the Relationship Cat. (category) dropdown list. For our example, choose FCRHM04 from the Relationship Cat. dropdown list and enter the business partner number “20000011” in the Relationship to BP field. Next, click on Create

the business partner 20000011 has a bill-to-party relationship to business partner 20000012. To create this relationship, create another business partner relationship of the business partner 20000012 with the same business partner 20000011, but this time, choose Invoicing Party from the Relationship Cat. dropdown list.

Overview of Business Partner RelationshipsOverview tab, which displays two business partner relationships of business partner 20000012 with the business partner 20000011. Details about the individual relationships are shown in their respective tabs

To access a business partner’s or vendor’s report, use Transaction MKVZ or followthe menu path Logistics - Materials Management - Purchasing - Master Data - Vendor- List Display -Purchasing List.