Vendor Master Data & Records, and Purchasing Information Data SAP Implementation EGN 5620 Enterprise Systems Configuration Fall, 2012 Vendor Master Data & Records, and Purchasing Information Data SAP Implementation EGN 5620 Enterprise Systems Configuration Fall, 2012

January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 2 Vendor Master Data Includes all data required for ◦processing business transactions and ◦corresponding with vendors Information is shared between the ◦accounting and ◦purchasing departments

January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 3 Vendor Master Data & Records, and Purchasing Information Data Vendor master data and records are maintained by both ◦accounts payable (A/P) and ◦purchasing Purchasing information data are maintained primarily by ◦purchasing

January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 4 Vendor Master Data A master record must be created for every vendor ◦General data, ◦Company Code data (Financial Accounting - FI), and ◦Purchasing data (Material Management - MM) Purchasing data Condition Control data Partner functions Company code data Account management Payment transactions General data Address Control data Payment transactions

January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 5 Vendor Master Structures of the Data General Data: Address Purchasing Data Vendor General Data Company Code Data Financial Accounting (FI) Purchasing Data (MM)

January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 6 Vendor Master Data – Typical Screen Vendor attributes that sufficiently differentiate them by their: Address Control Payment Transactions Accounting Information Correspondence Purchasing Data Partner Functions

January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 7 General Data – Address Address Vendor Name Search Term Street address City, Region Postal code Country Communication Language Telephone, Fax, Vendor Master General Data – Address

January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 8 Vendor Master- General Data – Control Data Account Control Customer (if the vendor is both a vendor and a customer) Authorization Trading partner (if the vendor is a part of an independent company) Group key (combines vendors to enhance the search capacity)

January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 9 Vendor Master- General Data – Control Data Tax Information ◦Tax codes  used to enter ID number of the vendor ◦Fiscal address ◦Country code ◦City code Reference Data / Area ◦International locator number  used to identify a legal, functional, or physical location within a business or organizational entity ◦Industry key  allows similar vendors to be grouped by industry ◦Transport zone

January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 10 Vendor Master - General Data – Payment Transactions Bank Details ◦Bank Key  selected from a match code with company code entered ◦Bank Account ◦Account Holder ◦Partner Bank Type (if vendor has more than one bank account, then it allows to sequence those accounts) Payment Transactions ◦Alternative Payee  used to enter another vendor number ◦Instruction Key  To control which statements are given to the banks during the payment order

January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 11 Vendor Master – Accounting Information Accounting Information ◦Reconciliation Account  see next slide ◦Sort Key  used to select a sort for the allocation field ◦Release Group (for payment)  the release-approval group can be defined and configured to allow only those in the group to be able to “release for payment

January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 12 Reconciliation Account An individual G/L account recorded in line-item detail in the sub-ledger and summarized in the G/L The information entered into the reconciliation account is all line-item data from the vendor account. The reconciliation in the G/L is at the summary level and is used to reconcile against the vendor account at the total level, while the sub-ledger identifies line-item data.

January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 13 Reconciliation Account Postings to sub-ledgers (such as accounts receivable or accounts payable) are automatically concurrently posted to the corresponding reconciliation account in the General Ledger Thus, the General Ledger is automatically updated and remains in balance with the customer and vendor individual account totals

January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 14 Vendor Master – Accounting Information Interest Calculation ◦Interest Calculation Indication  for automation interest calculation, and is configured by accounting department ◦Interest Calculation Frequency  used to select a period for calculation of interest Withholding Tax ◦Withholding Tax Code ◦Exemption Number

January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 15 Account Groups Identifier that controls which fields must be entered when an account is created Determine a valid number interval for each of the groups (types) of General Ledger accounts that have common attributes Must be created before General Ledger Chart of Accounts master records can be created You must assign each account to an appropriate account group

January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 16 Account Groups Chrt/accts Acct group Description From To CHRT BS Balance Sheet (BS) CHRT PL Income Sheet CHRT RA Reconciliation

January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 17 Account controlSuppress Req. entry Opt. entry Display Currency Tax category Reconciliation account … Account Group BS Account control Account management Document entry Bank/financial details Interest calculation Joint venture Account Groups

January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 18 Field Status Field status controls how the data will be entered for a field when an accounting master record is being used in a transaction Determining whether a field is required, optional, suppressed, or display only Field status controls are also relevant to a specific activity — create, change, or display

January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 19 Field Status Variant Fld status groupText ZALLAll Accounts ZBSABalance Sheet Accounts ZEXPExpense Accounts ZGRIMaterial Management (GR/IR) Accounts ZRCNReconciliation Accounts ZREVRevenue Accounts

January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 20 Vendor Master – Payment Transactions Payment Data ◦Payment Terms (cash discounts and favorable payment periods offered by vendor) ◦Tolerance Group (the limit to which an event can deviate) ◦Check Double Invoice (to check for double or duplicate invoices when they are entered) ◦Check Cashing Time Automatic Payment Transactions ◦Payment Methods ◦Alternate Payee ◦Payment Block(prevent any open items from being paid) Invoice Verification ◦Tolerance Group

January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 21 Vendor Master – Correspondence Accounting Dunning Data ◦Dunning Procedure  To remind vendors to deliver the material from the purchase orders ◦Dunning Block  If selected, the vendor is not for dunning run ◦Dunning Recipient ◦Date of Legal Dunning Procedure Correspondence information ◦Local Processing ◦Accounting Clerk ◦Account With Vendor  used to identify the company ◦Clerk at vendor  the contact person at the vendor side

January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 22 Vendor Master –Purchasing Data Conditions ◦Order Currency ◦Terms of Payment ◦Incoterms (next slide) ◦Minimum Order Value Sales Data ◦Salesperson ◦Telephone ◦Account with vendor

January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 23 Vendor Master –Purchasing Data Incoterms are standard trade definitions used in international contracts. The International Chamber of Commerce based in Paris, devised these standard trade definitions. The 13 incoterms are divided into four groups (arrival, departure, carriage paid by seller, and carriage not paid by seller). GroupIncotermLong NameLocation E-DepartureEXWEx workNamed Place D - ArrivalDAFDelivered at FrontierNamed Place D - ArrivalDESDelivered Ex ShipPort of Destination D - ArrivalDEQDelivered Ex QuayPort of Destination D - ArrivalDDUDelivered Duty UnpaidDestination D - ArrivalDDPDelivered Duty PaidDestination C- PaidCFRCost and FreightPort of Destination C- PaidCIFCost, Insurance, FreightPort of Destination C- PaidCPTCarriage Paid toDestination C- PaidCIPCarriage, Insurance PaidDestination F - UnpaidFCAFree CarrierNamed Place F - UnpaidFASFree Alongside ShipPort of Destination F - UnpaidFOBFree on BoardPort of Destination

January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 24 Vendor Master –Purchasing Data Control Data Acknowledgement Required To indicate if acknowledgement is required upon receipt of the order Automatic Purchase Order To allow automatic issuance of purchase order Good receipt-based invoice verification To perform invoice verification based on the goods receipt amounts Subsequent settlement To allow a rebate Default Data Material Purchasing Group Planned Delivery Time Confirmation control (confirmation type and sequence)

January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 25 Vendor Master – Purchasing Data – Partner Functions Partner Functions ◦Used to define the relationships between the vendor (or customer) and the company. List of (Vendor) Partner Functions ◦AZalternative payment recipient ◦CAcontract address ◦CPcontact person ◦ERemployee responsible ◦GSgoods supplier ◦OAordering address ◦PIinvoice presented by ◦VNvendor

January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 26 Vendor Master – Purchasing Data – Account Group Vendor masters are assigned to a vendor account group Through field status maintenance, vendor account groups can be set up for one-time vendors, regional vendors, and internal vendors The vendor account group controls both type and number range assignment for vendors

January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 27 Purchasing Info Record The purchasing info record provides continuously updated information about ◦the relationship of a specific material with a specific vendor ◦Order unit, price, price changes, tolerances, reminder information, historic data, statistics, texts ◦Choice of automatic or manual updating

January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 28 Source List It stores information about where to acquire a given material for a given period of time It specifies whether this source should be used by Materials Requirement Planning (MRP)

January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 29 Purchasing Tolerances A tolerance limit set for allowed variance before a warning/error message is displayed ◦Price variance  Compares the price in the purchase order with the valuation price stored in the material master ◦Maximum cash discount  This tolerance limit is set to assure that cash discounts do not exceed allowable discounts

January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 30 Goods Receipts Tolerances Purchase order price quantity ◦Two tolerance levels maintained per item  The maximum percentage variance before a goods receipt postings is not allowed  A percent variance that generates a warning message but allows posting Moving average price variance ◦the maximum moving average price change allowed

January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 31 Invoice Receipts Tolerances Tolerance limits configured for invoice receipts: price, quantity, and blanket purchase orders The tolerances include: ◦Amount for item with or without order reference ◦Percentage Over/Under Quantity Variance ◦Exceed amount: quantity variance ◦Blanket purchase order (value and time limit) ◦Price variance

January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 32 Automatic Account Assignment Created to avoid manual postings of financial transactions which follow goods movements to reflect the values of transferred materials Used across all modules to keep track of the values of materials that are being consumed (e.g., production), or transferred into other valuation areas of the company Is a set of rules and master data which enable the financial tracking of logistics movement

January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 33 Automatic Account Assignment Valuation Grouping Code Plant – P004Plant – P001 Grouping Code G001 Plant – P003 Plant – P002 Grouping Code G002 Plant – P005

January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 34 Automatic Account Assignment Transaction Keys Transaction Keys ◦The transaction keys are used to determine accounts or posting keys for line items which are created automatically by the system. ◦The transaction keys are defined in the system.

January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 35 Automatic Account Assignment Transaction Keys Transaction Keys ◦Inventory Postings  BSX ◦Offsetting Entry for Inventory Postings  GBB ◦Materials Management Small Differences  DIF ◦Cost (price) differences (PPV)  PRD ◦Goods receipt / inv. receipt clearing acct  WRX

January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 36 Automatic Account Assignment Modifier Modifier – modifies the transaction key for various movement types ◦Blank – Goods receipt from purchase order with account assignment ◦VBR – Goods issue to consumption ◦VAX – Goods issue to sales – post to cost of goods sold ◦AUF – Goods receipt from a production order – post to production settlement ◦Etc. – Many others

January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 37 Material Types & Valuation Classes Account category reference: ◦Builds the link between material types and the valuation class(es) 0009 – Reference for Finished Products 0005 – Reference for Trading Goods 0002 – Reference for Operating Supplies 0001 – Reference for Raw Materials Account Category Reference FERT HAWA HIBE ROH Material Type / /3001/3002/3003 Valuation Class

January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 38 Material Types & Valuation Classes Material Type ROH (Raw Material) Acct Cat. Ref 0001 – Raw Materials Valuation Class 3100 (Trading Goods) Valuation Class 3000 (Raw) Valuation Class 7920 (Finished goods) Valuation Class 3030 (Supplies)