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92 CHAPTER 4 The Procurement Process

Demo 4.1: Review material master

VENDOR MASTER

Vendor master data include the data needed to conduct business with a
vendor and to execute transactions related to the purchasing process. Data in
the vendor master are grouped into three segments: general data, accounting
data, and purchasing data. The relationships among the three segments and the
two departments responsible for the data—accounting and purchasing—are
depicted in Figure 4-6. Figure 4-7 highlights the specifi c data that are included
in each segment.

Figure 4-6: Segments of vendor master data

Figure 4-7: Examples of vendor master data

General data include the vendor’s name, address, and communication
information such as phone and fax numbers. These data are defi ned at the cli-
ent level and are consistent across all company codes and purchasing organi-
zations in the enterprise (client). General data are common to the purchasing
and accounting departments and can be maintained by either department.
Accounting data include tax-related data, bank data, and payment terms
and methods. These data are defi ned at the company code level (recall from
Chapter 2 that fi nancial accounting is maintained at the company code level) and
are relevant to all purchasing transactions in the company code. The accounting
department will typically complete this segment of the vendor master.

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