Vendor Code: Meaning, Creation, Examples & Registration Guide

Define Account Groups with Screen Layouts (OBD3)

Account groups categorise vendors based on shared characteristics and determine which fields are mandatory, optional, or hidden during vendor master data entry. This configuration ensures consistency and streamlines data maintenance. 

Transaction Code: OBD3 

Go to the Supplier Creation Task

Inside the application, click on “Create Supplier” under the “Suppliers.” Now, a Create Supplier dialogue box will pop up. 

Create Number Ranges for Vendor Accounts (XKN1)

Define unique number ranges for Vendor Master Data to ensure no duplication in your records. Use this transaction to display or edit number ranges and intervals. Monitor the current status of number ranges to avoid overlaps. 

Transaction code: XKN1

Create the Supplier Record 

1. In the Create Supplier dialog, enter:

• Name of the supplier
• Business relationship (select Prospective for sourcing only or Spend Authorised for ordering/invoicing)

2. Choose Tax Organisation Type (e.g., Corporation, Foreign corporation, Government agency, Individual, Partnership etc.)

3. Enter Tax Country

4. Enter Tax Registration Number

Click Create to generate the supplier record

Assign Number Ranges to Vendor Account Groups

Link the number ranges created in the previous step to specific vendor account groups. This step ensures that each vendor is assigned a unique identifier based on the account group they belong to. 

Transaction Code: OBAS 

Complete Supplier Profile Details

On the Edit Supplier page under the Profile tab, fill in:

• Supplier type (e.g., Supplier, Contractor, Sub-contractor, Attorney, Carrier, Insurance company, Utility)
• Inactive date (optional, if business ends on a specific date)
• Parent supplier (If you’re a subsidiary of a parent company)
• Organisation details (additional info as per required)
• Payments: choose preferred payment methods and set a default

Maintain Number Ranges for Configuration 

Review and fine-tune number ranges for consistency and accuracy during vendor creation. This step is crucial for maintaining alignment across multiple systems. 

Transaction Code: BUCF

Add Supplier Address

First, go to the Address tab and click the Create icon. In the Create Address page, you will be asked to enter the following details: 

• Address name
• Country name
• Stress address details 
• City, state, postal code
• Preferred language 
• Address purpose 
• Phone number
• Fax number
• Email id
• Inactive date 

Once you’re done filling in all the information, click Save and Close.

Define Groupings and Assign Number Ranges

Set up groupings and assign appropriate number ranges to business partner configurations. This step helps in maintaining standardised vendor data across SAP systems. 

Path: SPRO > IMG > Cross-Application Components > SAP Business Partner > Business Partner > Basic Settings > Number Ranges and Groupings > Define Groupings and Assign Number Ranges. 

Define Supplier Sites

With the supplier selected, go to the Sites tab and click the Create icon. 

Now, in the Create Site page, enter:

• Address name: Choose from the existing address 
• Site name: Assign a name to the site 
• B2B communication: If applicable, enable B2B messaging

Click Save.

Note: You will not be able to access the Sites page unless you have a procurement agent role. 

Configure Number Assignment for BP to Vendor 

Establish a connection between business partner (BP) groupings and vendor account groups. This ensures automatic synchronisation of vendor data whenever business partner information is updated. 

• Choose between internal or external number assignments. 
• For identical BP and vendor numbers, configure external assignments for vendor number ranges. 

Path: SPRO > IMG > Cross-Application Components > Master Data Synchronisation > Customer/Vendor Integration > Business Partner Settings > Settings for Vendor Integration > Field Assignment for Vendor Integration > Assign Keys > Define Number Assignment for Direction BP to Vendor. 

Assign Site Details In the Receiving subtab, specify:

1. Ship to excessive action: Reject or Warn for wrong/excess shipments. 

2. Receipt routing: Direct (to inventory), Standard (inspection), or Inspection

3. Overreceipt tolerance: Max % extra allowed

4. Overreceipt action: Warn, reject, etc. if tolerance exceeded
5. Early receipt tolerance: Days allowed before delivery date

6. Late receipt tolerance: Days allowed after due date

7. Allow substitute receipts: Enable alternate items in place of the ordered ones

8. Receipt date exceptions: Rules for early/late receipts

Go to the Site Assignments subtab and click Autocreate Assignments to assign the site to relevant business units. Click Save and Close. 

In the Invoicing subtab, specify:Invoicing currency: In which the supplier will send invoices (e.g., USD, EUR).

1. Invoice amount limit: The maximum amount before triggering an alert or rejection.
2. Invoice match option: Defines what the invoice should be matched against (e.g., Purchase Order or Receipt)
3. Match approval level: The level at which invoice matching needs to be approved — could be 2-way (PO only) or 3-way (PO + receipt).
4. Quantity tolerances: The acceptable difference in quantity between invoice and PO or receipt.
5. Amount tolerances: The acceptable monetary variance between invoice amount and PO/receipt.
6. Payment currency: Currency in which the supplier should be paid.
7. Payment priority: Indicates how urgent the payment is compared to other suppliers (e.g., 1 = highest priority).
8. Pay group: A category to group suppliers for payment processing (e.g., domestic, international, services).

Use Transaction Code BP for Vendor Management

In SAP S/4HANA, the Business Partner (BP) is the central entity for managing vendor, customer, and supplier data. By using transaction code BP, you can: 

• Create and maintain vendor master records. 
• Manage multiple addresses and address usage for vendors. 

Click on organisation 

Create BP role Select FLVN00 (FI)

Click on the Company code

Reconciliation account Sundry creditors GL map and save

Add Supplier Contacts

Select the Supplier and open the Contacts tab. Now, click the Create icon and enter the following details of the supplier:

• First and last name 
• Email address 
• Administrative Contact (check this box if applicable)
• Create User Account (enable this option if the contact requires access to the supplier portal)

Finally, click Save and Close. 

Onboard the Vendor

• Share a link where suppliers can fill out a registration form. 
• Collect necessary documents such as PAN, GST registration certificate, and bank details. 

Initiate Supplier Registration

1. External Registration: Share a registration URL with suppliers. They enter their email to get a one-time access code for secure form access.

2. Internal Registration: Employees can request supplier registration via the Suppliers work area, Sourcing, or Self-Service Procurement modules.

Verify Vendor Details

Run a thorough background check about your vendor's credibility and compliance with your company's requirements. 

Supplier Completes Registration Form

The supplier will fill up the following details:

• Company Details: Name, country, tax identifiers, organisation type.
• Contacts: Primary and additional contact information.
• Addresses: Business locations and their purposes (e.g., purchasing, payment).
• Bank Accounts: Banking information for payments.
• Products and Services: Categories of goods or services offered.
• Attachments: Required documents like tax certificates or bank letters.

Generate the Vendor Code

Based on the collected details, assign a vendor code as per your internal coding format. 

Review and Approval

• The submitted registration undergoes a collaborative review process. 
• Approval workflows are configured to route the request to appropriate stakeholders. 

Record the Code in the System

Enter the vendor code into your ERP or vendor management software for future reference. 

Supplier Record Creation

• Upon approval, Oracle Fusion automatically creates the supplier record. 
• A unique Supplier Number (vendor code) is assigned from a predefined sequence. 
• Supplier sites are generated based on provided addresses and their designated purposes.

Confirm Registration: 

Notify the vendor that their registration is complete and provide them with their vendor code. 

Confirmation

The supplier receives a notification confirming their registration and assigned Supplier Number.

Steps

Searching for a Vendor Code in SAP

Searching for a Vendor Code in Oracle

You can select the following supplier attribute 

• Supplier Name (default) 
• Supplier Code
• Address Code
• Tax ID

They will fetch you supplier details they are intended for, entirely or in parts.

In the Manage Suppliers page, use the search criteria to look for: 

• Supplier Name 
• Supplier Number (Vendor Code) 
• Taxpayer ID D-U-N-S Number 
• Business Relationship 
• Type Status (Approved, Registered, etc.)

Now, choose the operator attribute. You can run a query to retrieve the vendor code using specific parameters, such as:

1. Begins with (Default): Show suppliers that begin with supplier query attribute 

2. Contains: Show suppliers that include all of the search criteria in the order provided

3. Ends With: Show suppliers that end with the supplier query attribute

4. Equals: Show suppliers that match the search criteria exactly