SAPMM- S/4 HANA Business Partners

1. Vendor account group

2. Maintain Field Status Group
3. Define Number Ranges for Vendor Account Group
4. Assigning Number Ranges to Vendor Account Groups
5. Configuration in a Business Partner
6. Defining and Assigning Number Ranges
7. Defining Business Partner Role Categories
8. Customer/Vendor Integration
9. Defining the Business Partner Role for Vendor to Business Partner
10. Business Partner Types
11. Partner Functions
12. Vendor Subrange Functionality
13. Reconciliation Account
14. Payment Terms
15. Incoterms
16. Business Partner Relationships

E-mail - info@thesapsolutions.com
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 field
General Data
Company Code Data
Purchasing 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 Creating
Vendor 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 - Master

Data - Preparations for Creating Vendor Master Data - Assign
Number Ranges to Vendor
Account Groups.
Configuration in a Business Partner

Defining and Assigning Number Ranges

SPRO-Cross-Application Components -SAP Business Partner - Business Partner - Basic Settings - Define Number
Ranges

SPRO -Cross-Application
Components - 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 BP
Role 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 the
Std Assignment BP Role -> BP Role Cat. checkbox
has been selected so that the system
assigns 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 Field
Attributes 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 Role
Category 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

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

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

List of Partner Functions 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
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 path
Logistics – General - Business Partner - Vendor – Control - Define Account Groups and
Field 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 Data
T 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 Indicator
The 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 Vendor

When 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 Level

This 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 Data
The 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 Relationships
Overview 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 follow
the menu path Logistics - Materials
Management - Purchasing - Master
Data - Vendor
- List Display -Purchasing List.