Release V2.

470
February 2005
English

Accounts Payable
Accounting:
Master Data
Business Process Procedure

SAP AG
Neurottstr. 16
69190 Walldorf
Germany
SAP Best Practices J03-Accounts Payable Accounting Master Data: BPP

Copyright

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Icons

Icon Meaning
Caution

Example

Note

Recommendation

Syntax

Typographic Conventions

Type Style Description

Example text Words or characters that appear on the screen. These include field
names, screen titles, pushbuttons as well as menu names, paths and
options.
Cross-references to other documentation.
Example text Emphasized words or phrases in body text, titles of graphics and tables.
EXAMPLE TEXT Names of elements in the system. These include report names,
program names, transaction codes, table names, and individual key
words of a programming language, when surrounded by body text, for
example, SELECT and INCLUDE.
Example text Screen output. This includes file and directory names and their paths,
messages, source code, names of variables and parameters as well as
names of installation, upgrade and database tools.
EXAMPLE TEXT Keys on the keyboard, for example, function keys (such as F2) or the
ENTER key.

Example text Exact user entry. These are words or characters that you enter in the
system exactly as they appear in the documentation.
<Example text> Variable user entry. Pointed brackets indicate that you replace these
words and characters with appropriate entries.

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Abbreviations

R Required entry field

(used in the end-user procedures)
O Optional entry field
(used in the end-user procedures)
C Conditional field
(used in the end-user procedures)

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Contents
Master Data in Accounts Payable Accounting.....................................................................................6
1 Creating a Vendor Master Record................................................................................................. 6

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Master Data in Accounts Payable Accounting

Purpose
All business transactions are posted to and managed by means of accounts. You have to create a
master record for each account that you need. The master record contains data that controls how
business transactions are entered in the account and how posting data is processed. In the master
record, you can also store all the data that you need for conducting business with the vendor.
Vendor master records are used by both the financial accounting department (accounts payable
processing) and the purchasing department (MM) in your company. This document, however, only
discusses the general data in vendor master records and the financial accounting aspect of these.

Prerequisites
The settings have been made for accounts payable accounting.

Process Flow
You can execute the following transactions in master data processing
 Create
 Change
 Display
 Block/unblock
 Mark for deletion
 Display changes

Result
Vendor master records have been created and can be posted.

1 Creating a Vendor Master Record

Procedure
1. Call up the transaction as follows:

Menu path Accounting  Financial Accounting  Accounts Payable 

Master Records  Create
Transaction Code FK01

2. In the Create Vendor: Initial Screen, enter the required data.

Field Description R/O/C User action and values Comment

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name
Vendor R/O A1000 Example:
Vendor account
number as it is
external number
assignment
Company code R BP01
Account group R BP01 Exter. no.
assgnment

Choose Enter.

3. In the Create Vendor: Address screen, enter the required data.

Field Description R/O/C User action and values Comment

name
Name R Siri Enterprises Company Example
Ltd
Search term 1 R Siri Example
Street/house number O Mahatma Gandhi Road Example
This is field must
be filled, if you
are going to use
the Automatic
Payment
Program
Postal code/City R 522000 / Bangalore Example

Country R IN Example
Region O 10 - Karnataka Assign Vendor
State
Language R English Example
Telephone O 080-565998 Example

Choose Enter.

4. In the Create Vendor: Control screen, enter the required data.

Field Description R/O/C User action and values Comment

name
Customer O (Customer) Only if clearing
required

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Trading partner O Only if the

company is an
affiliated
company

Choose Enter.

5. In the Create Vendor: Payment Transactions screen, enter the required data (if you
require bank details).

Field Description R/O/C User action and values Comment

name
Country O IN Example
Bank key O SBI Example

Bank account O 1234567 Vendor Bank

Account
Account holder O Siri Enterprises Company Example
Ltd
Collection authority O Example
Alternative payee O Only if payment
is to be made to
a different
vendor

Choose Enter.

If the Bank details are not maintained in the system earlier, system proposes the pop
window to enter the Bank name and address.

6. In the Create Vendor: Accounting Information Accounting screen, enter the required
data.

Field Description R/O/C User action and values Comment

name
Reconciliation account R 13111000 – Payable for Select the
Services - Domestic suitable
Reconciliation
Account
Sort key R 001 Select from the
list

Choose Enter.

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7. In the Create Vendor: Payment Transactions Accounting screen, enter the required data.

Field Description R/O/C User action and values Comment

name
Payment terms O 0001 Select from the
list the which is
mostly used for
this vendor
Payment methods O C If required

Choose Enter.

8. In the Create Vendor: Correspondence Accounting screen, enter the required data.

Field Description R/O/C User action and values Comment

name
Accounting clerk O Example
Account with vendor O Example
Clerk at vendor O Example
Accounting clerk’s O Example
telephone number

9. In the Create Vendor: Withholding Tax Accounting screen for the country IN make the following
entries, if the vendor subject to with holding tax:

Field Description R/O/C User action and values Comment

name
Wth.tax. With holding Tax Type O I1 Select from the
Type list based on the
type of service
W/Tax Withholding Tax Code O I1 Select from the
Code list based on the
rate of deduction
Liable Liable O If tax is deductible then Even though you
activate the check box assigned the
Withholding tax
Type and
Withholding tax
code, if the
check box not
selected, system
will not hold the
tax
Rec.Type Type of recipient O CO – Corporates Select based on

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OT – Others the type of

vendors. Based
GO – Government / no GO
on this TDS
challan will be
updated
W/TaxID Tax identification no O Maintain the
relevant Tax
identification
number
Exemptio Exemption Key O If the vendor
n number obtains the TDS
exemption from
the Tax
Authorities
assign the same
Exem % Exemption percentage O Percentage of
Exempted
Exemptio Reason for exemption O Exempted
n Reason Reason
Exempt Date from which exempted O Date valid from
From
Exempt Date to which exempted O Date valid upto
To
Descripti Description of with holding O Defaulted from
on tax Type the Withholding
tax type

If the vendor services / supplies subject to with holding tax, only then should you maintain
the above details
System allows the multiple withholding tax codes. You can maintain all the applicable
withholding tax codes. System proposes the tax codes assigned in the master record
automatically at the time of document processing. If withholding tax not applicable to the
particular transactions, the same Withholding tax type and withholding tax code can be
removed before posting the document.

10. Save your entries.

Create another Vendor Master Record with Vendor ID - A2000, without assigning any values in
the Withholding Tax Accounting details tab.

Result
The vendor master record has been created under the number you entered.
If you choose an account group with internal number assignment to create the vendor account, the
system automatically assigns the next available number in the corresponding number range that has
been assigned to the account group.
.

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