Lesson 2 of 5
Partner functions
9 min
A sales order involves more than one party. Someone orders, someone receives the goods, someone receives the invoice and someone pays. SAP models each of these with a partner function. In a small business they are all the same company; in Contoso's fleet business they often are not.
| Partner function | Common abbreviation | Responsibility | Great Lakes Fleet Services example |
|---|---|---|---|
| Sold-to party | SP | Places the order; drives sales area data and many defaults | Head office in Cleveland |
| Ship-to party | SH | Receives the goods; drives delivery address, shipping point and tax jurisdiction | Toledo depot or Grand Rapids depot |
| Bill-to party | BP | Receives the invoice | Accounts payable office |
| Payer | PY | Pays the invoice; credit exposure and open items sit here | Head office in Cleveland |
When a business partner is created as a customer, SAP proposes the customer itself in all four functions. To model Great Lakes Fleet Services' depots, Contoso creates each depot as its own business partner with the customer role, then adds them as ship-to partners on the head office's Partner Functions tab in sales area 1710 / 10 / 00. Every partner entered there must already exist as a business partner.
How partners default into an order
When Maria enters the sold-to party, SAP runs partner determination: a procedure configured per order type that says which partner functions the order needs, where to find them (usually the sold-to's partner functions) and whether they may be changed. If the sold-to has several ship-to parties, a selection list appears and Maria picks the depot.
- Sold-to enteredMaria enters the head office as sold-to in sales area 1710 / 10 / 00
- Procedure readThe order type's partner determination procedure lists required functions
- Partners foundShip-to, bill-to and payer are read from the sold-to's partner functions
- Choice offeredTwo ship-to parties exist, so a selection list appears; Maria picks Toledo
- Partners on the orderHeader Partners tab shows all four; delivery address and tax jurisdiction follow the ship-to
Overriding partners
Sometimes an order needs a different partner from the default: a one-off delivery to a customer's body shop, for example. The ship-to can be changed on the header Partners tab (and on an item, if item-level partners are allowed) as long as configuration marks the function as changeable. Changing the payer on an individual order is usually restricted, because the payer carries credit exposure and receivables.
- Is it about where goods went or the delivery address?Yes → ship-to · No → next question
- Is it about who received the invoice document?Yes → bill-to · No → next question
- Is it about who owes the money, credit limit or open items?Yes → payer · No → next question
- Is it about pricing, sales area data or who placed the order?Yes → sold-to · No → other partner functions such as contact person or forwarding agent
Partners and downstream processes
Partner functions travel down the chain. The delivery is created per ship-to and shipping point; orders for different ship-to parties cannot share a delivery. Billing documents are split per payer and bill-to. Credit exposure accumulates on the payer. Tax may be determined from the ship-to's location. So a partner error at order entry can create an extra delivery, a wrong invoice address, a wrong tax rate and credit exposure on the wrong account, all from one field.
| Partner | Downstream effect | What a tester checks |
|---|---|---|
| Ship-to | Delivery split, address, route, tax jurisdiction | Delivery address and tax on the invoice |
| Bill-to | Invoice address and output recipient | Invoice address and email recipient |
| Payer | Open item, credit exposure, dunning | Receivable posted on the payer's account |
| Sold-to | Pricing and sales area defaults | Price and terms on the order |
Why each partner function needs its own expected result.
What would you do?
A Great Lakes Fleet Services depot moved from Toledo to Findlay. Maria's colleague has been changing the address on every new order. What should Maria recommend?
- Sold-to orders, ship-to receives, bill-to gets the invoice, payer pays.
- Partner determination reads the sold-to's partner functions according to the order type's procedure.
- Several ship-to parties produce a selection list at order entry.
- Overrides are possible only where configuration allows; payer changes are usually restricted.
- Partners drive delivery splits, invoice addresses, tax, credit exposure and open items.
Check your understanding · not graded
Lesson check
1. Which partner function receives the invoice?
2. On which partner does credit exposure accumulate?
3. What happens at order entry when the sold-to has several ship-to parties?
4. Two orders for different ship-to parties are due on the same day. Can they share one delivery?