Article 8: What are the key fields and settings in vendor master data?

What are the essential vendor master fields I need to understand?

Vendor master data contains multiple types of information organized into different sections. Here's what each key field controls:

Authorization and Control Fields

Authorization Group:

• What it does: Controls who can view/modify vendor data
• When to use: For sensitive vendors (competitors, VIPs, restricted suppliers)
• Example: Group "CONF" for confidential vendors
• How to assign: Enter authorization group in vendor general data

Field Status Controls:

• Required: User must enter data (red indicator)
• Optional: User can enter data (yellow indicator)
• Display-only: User cannot change data (green indicator)
• Suppressed: Field is hidden from user

Financial Data Fields

Reconciliation Account:

• Purpose: General ledger account where vendor balances are posted
• Example: Account 160000 for "Accounts Payable - Trade"
• Requirement: Must be defined for all vendors
• Impact: Affects financial reporting and month-end closing

Payment Terms:

• What it controls: When and how payments are made
• Examples:

• Net 30: Payment due in 30 days
• 2/10 Net 30: 2% discount if paid within 10 days

• Location: Company code-specific data

Dunning Procedure:

• Purpose: Automated reminder process for overdue payments
• When used: When vendor becomes a customer (sells to you)
• Configuration: Links to dunning program settings

Master Data Organization

Number Range Assignment:

• Internal: System assigns vendor number automatically
• External: User enters vendor number manually
• Controlled by: Vendor account group setting
• Best practice: Use internal for consistency

One-Time Account Indicator:

• Purpose: For vendors used infrequently
• Benefit: One master record serves multiple occasional suppliers
• Usage: Enter specific vendor details during transaction
• Example: Taxi service, small repair shops

Party Roles and Relationships

Different Address Types:

• Main vendor: Primary business address
• Invoicing Party (PI): Where invoices come from (may differ from main)
• Goods Supplier (GS): Where goods ship from (may differ from main)

When to use different parties:

Company Code Specific Settings

What varies by company code:

• Reconciliation account: Different GL accounts per company
• Payment terms: Different payment policies
• Dunning procedure: Different collection processes
• Tax information: Different tax treatment

How to maintain company code data:

1. Create BP with general data first
2. Add company code-specific role (FLVN00)
3. Enter financial details for each company code
4. Save and test transactions

Data Quality Best Practices

Required information checklist:

• Name and address: Complete and accurate
• Tax ID: For tax reporting compliance
• Payment terms: For cash flow planning
• Reconciliation account: For financial posting
• Account group: For data control

Common data quality issues:

• Missing tax information: Causes tax reporting problems
• Incorrect payment terms: Affects cash flow
• Wrong reconciliation account: Creates GL posting errors
• Incomplete address: Delays purchase orders and deliveries

How to maintain data quality:

• Regular vendor data reviews
• Standardized naming conventions
• Mandatory field validation
• Periodic cleanup of inactive vendors