Vendor Master Record

 The R/3 accounts payable manages the

accounting data of all of a company’s
vendors.
 A vendor is company’s business partner
who has outstanding payables for received
goods or services.
 Key areas of accounts payable are:
– Integration of information
– Cash management
– Payment procedures
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 Vendor Master Data
 Vendor Master Record Processing
 Vendor Invoice Processing

 Automatic Payment

 Manual Payment

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Vendor master record processing - I

 The basic data object is the vendor master

record, and contains the link to the general
ledger, information on each vendor and the
purchasing and accounting functions in the
R/3 system
 The master record consist of:
– General data
– Company code data
– Purchasing organization data
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Vendor master record processing - II

 General data
– Basic information such as company address,
phone, etc
 Company code data
– Individual account information concerning the
vendor
– The smallest org. unit for which a set of accounts
can be drawn up for reporting purposes
 Purchasing organization data
– Information on request for quotation, purchase
orders and invoice verification
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Vendor master record processing - III

 A master record must be created in

order to process transactions
 A new master record is made for each
individual account group

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 Vendor invoice processing - IV

 Involves data entry

 Invoices may or may not have a
vendor master record
 If an invoice arrives from a vendor
without a master record, it must be
created before invoice data can be
entered.

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 Automatic payment

 Automatic payment is carried out in three

steps:
– Create payment proposal
 Based on specifications in the customer master record
– Process payment proposal
 Editing, processing, triggering of payment
– Post payment documents
 Generation of payments with matching documents.
Payable items are cleared and linked to the payments

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 Manual payment

 An additional option for processing

payments
 The following information must always be
entered manually:
– The general ledger account number for the bank
– The payment amount
– Any charges/fee
– The document number

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OTA vendor processing
 Some suppliers deliver goods or services
only once, and these are called one-time
accounts (OTA)
 They are treated differently, with a more
simplified approach to master data
processing
 They have a common master data record
 “One-step invoice processing”