Lesson 1 of 5
The supplier as a business partner
9 min
Every purchase order Contoso Motor Co. sends depends on master data that was set up long before the buyer clicked Save. If the supplier has the wrong payment terms, the PO has the wrong payment terms. If the product has the wrong valuation class, the goods receipt posts to the wrong account. This course covers the procurement master data that drives P2P, and how to prove it is right.
We start with the supplier. In SAP S/4HANA, Lakeside Components is a business partner (BP). The BP holds data that is the same everywhere (name, address, tax numbers, bank details) once. Roles add the views a supplier needs.
Groupings and number ranges
When you create a BP you choose a grouping. The grouping decides the number range: internal (SAP assigns the next number) or external (you type it). Through customer-vendor integration, BP groupings are mapped to supplier account groups, and those account groups have their own number ranges. If you want Lakeside's BP number to equal its supplier number, the two number ranges must be designed to match. Contoso uses one grouping for trade suppliers with internal numbering and identical numbers on BP and supplier, and a separate grouping for one-time suppliers.
Purchasing organization data that drives POs
| Field (purchasing org data) | What it does on the PO | Contoso value for Lakeside |
|---|---|---|
| Order currency | Currency proposed on new POs | USD |
| Terms of payment | Payment terms proposed on the PO and then the invoice | Net 30 |
| Incoterms | Delivery terms proposed on the PO | FCA, supplier's dock |
| GR-based invoice verification | Proposed on PO items; invoices are matched per goods receipt | Set |
| Automatic purchase order | Allows requisitions for this supplier to be converted to POs automatically | Set |
| Partner functions | Ordering address, goods supplier, invoicing party if they differ | Invoicing party is Lakeside's head office BP |
| Purchasing group / planned delivery time | Optional defaults when no better source exists | Group 001; 10 days |
Supplier purchasing data and its effect on purchase orders.
Company code data matters just as much for P2P: the reconciliation account decides which payables account the invoice credits, and the payment methods decide how the payment run pays. Without company code data in 1710, Lakeside can receive POs but you cannot post its invoice in that company code.
Suppliers can also be blocked. A purchasing block stops new POs for one or all purchasing organizations, a posting block stops invoices in a company code, and a payment block stops payments. When Contoso stops buying from a supplier, purchasing blocks the BP for purchasing first and leaves posting open, so that invoices for goods already delivered can still be paid.
- RequestBuyer requests a new supplier with documents (tax form, bank letter)
- Check duplicatesSearch existing BPs by name, tax number and bank account
- Create BPCorrect grouping; general data; financial and supplier roles
- Approve and verifySecond person checks bank details and tax data
- ReleaseSupplier unblocked for purchasing and posting
Maintenance happens in transaction BP or the Fiori business partner and supplier master data apps. Classic supplier transactions redirect to BP. Many companies also run master data governance or a request workflow in front of creation, so that buyers request and a master data team creates.
What would you do?
Lakeside Components opens a second warehouse that ships to Contoso, while invoices still come from head office. A buyer wants to create a new supplier for the warehouse. What is the better approach?
- Suppliers are business partners: general data plus a financial supplier role and a supplier (purchasing) role.
- The BP grouping sets the number range; plan it with the supplier account groups.
- Purchasing org data (currency, payment terms, incoterms, GR-based IV, auto PO) defaults into POs.
- Company code data (reconciliation account, payment methods) is needed to post and pay invoices.
Check your understanding · not graded
Lesson check
1. Which BP role holds Lakeside's purchasing organization data?
2. What does the BP grouping control?
3. Which supplier field decides which payables account an invoice credits?
4. Which purchasing org setting allows requisitions to become POs automatically for this supplier?