Vendor Master Data 

Purpose

A vendor is a business partner from whom goods or services can be procured. Every vendor can carry out a number of different functions, such as delivering goods, issuing invoices, or granting conditions. Two types of vendor are defined in the R/3 System:

A vendor is classed as internal if the goods being delivered were already entered in Inventory Management beforehand, that is, if the vendor supplying the goods is a site. Normally only sites that are distribution centers are maintained as internal vendors.

The movement of goods is handled in the system in the form of a stock transport order or a delivery.

External vendors are usually selected from companies offering an assortment of goods or services on the market, with the help of guidelines drawn up by your Purchasing department. These guidelines determine the requirements a vendor has to fulfill before the vendor company is included in the source list of your company.

If parts of the assortment are offered at different conditions, the assortment is divided up into sub-ranges.

A site uses a purchase order to order goods from an external vendor.

The vendor master contains data on all vendors. Vendor master data is stored in individual vendor master records. This data appears as default values in the appropriate fields, for example, when you create purchase orders.

Implementation Considerations

Storing the master records centrally and making master data the single source of information for all system functions means that you only have to enter data once. If a vendor has a change of address, for example, you only need to enter the new address once.

Integration

As vendors are also credit-side business partners in accounting, vendor master records contain information from both Purchasing and Financial Accounting.

Additional Information

Customer Master Data

Vendors: Vendor Hierarchies 

Mass Maintenance

FI Accounts Receivable and Accounts Payable

BC Workflow scenarios in applications: Release Blocked Vendor Data (LO-MD-BP)