(i)  Vendor is also called as a business partner or goods supplier, sub-contractor, service agent etc.
     We have to maintain master data regarding our vendor that is called vendor master data.

  Each vendor is assigned to a unique vendor number and assign account group.

(ii)  Accounting group classifies all over vendors into different accounts in terms of number ranges.
      It is mandatory to specify the vendor account group when we create or identify the specific vendor, except if we create a vendor with reference to another vendor.
      Here it will take the reference vendor's group automatically.

(iii)  Our vendor data is maintained at the three types of levels

 (a) General data level       -->     Here we need to maintained vendor data such as Title, Name of the vendor and Address of vendor
 
(b) Company code data     -->     Customer data such as customer number, Tax information and so on.
 
(c) Purchasing data level   -->     Here we maintain the purchasing data to that specific vendor.

Here General data level is maintained at Client level where as company code data is maintained at company code level.

(iv)  fields at Purchasing data level :

(a) Order currency: It is a currency in which we place the purchase order on the name of this vendor.

(b) Terms of payment: Here we have to specify the terms at the time of payment to the vendor, it may contain certain discount

(c) Inco terms:  This field is mandatory incase of international trade, Eg: Free on board

(d) Minimum order value:  Here we mention the order value of minimum quantity for PO, if we try to give less than this value at PO system will through an error/warning.

(e) Schema group vendor: This field will be used incase of pricing procedure.

(f)  Pricing date control: This field will be used in price determination purpose.
 
(g)  Sales Data sub-screen: A group of fields we mention the sales person, telephone number and  bank account number of customer number that vendor uses for transactions.

 (f)  GR - Based invoice verification: If we set this indicator, vendor invoice quantity will be verified based on GR quantity and if vendor invoice quantity is grater than GR- based quantity then system will through an error.

 (g) Automatic evaluated GR settlement for delivery: (possible)

 (h) Automatic evaluated GR settlement for delivery Return item:  These two values are indicator are pre-requisites at the time of ERS.

In ERS process we don't receive invoices from vendor instead of that system will generate invoice automatically based on GR quantity and PO price,                                                                                                                                                                                         but for this vendor has to accept the process.

 (i) ABC Indicator: This field specify that the vendor belongs to A class, B class or C class. To decide that there is a process called vendor evaluation.

 (j) Mode of transportation: This field represents the transportation happened across border, whether it is by road, through train or by airways

(k) Acknowledgement Required: This field indicates whether Ack required for PO or not from vendor

(v) In Next screen we will define vendors partner functions.

(vi) 		Some vendors will supply very rarely to us  means once or twice in a year, for those vendors no need to define vendor master separately,
 instead of that a single vendor master will be created for all those vendors with 0099.

 (vii) 	We can create vendor master in three ways:

 (a) Vendor with company code:(FK01)  If we maintain vendor with company code then we will maintain only accounting information,
      Here we can only maintain the invoice but not PO and GR.

 (b) Vendor with Purchasing Org: (MK01)  If we maintain vendor with P.org the we can maintain only purchasing information.
   Here we can only maintain the  PO and GR but not invoice.

 (c)  Vendor centrally: (XK01)    If we maintain vendor then we maintain both accounting and purchasing information.  Here we can only maintain PO, GR and also invoice.

T-Code
                


Create vendor, Change, Display vendor:           MK01/FK01/XK01 ,  
                                                                            MK02/FK02/XK02, 
                                                                            MK03/FK03/XK03

 Display changes                                                 MK04/FK04/XK04

 Block or unblock or vendor                               MK05/FK05/XK05

 Flag for deletion                                                MK06/FK06/XK06