The vendor master and the purchasing organisation define who you buy from and how buying is organised.
Three layers
| Layer | What it holds | Owned by |
|---|---|---|
| General data | Name, address, telephone, tax number, bank details | Shared |
| Company code data | Reconciliation account, payment terms and method, payment block, dunning | Finance |
| Purchasing organisation data | Order currency, buyer, Incoterms, minimum order value | Purchasing |
Without company code data invoices cannot be posted; without purchasing organisation data orders cannot be placed. A normal vendor needs both.
Purchasing organisations
A purchasing organisation is the unit responsible for buying. It negotiates terms and holds info records and outline agreements.
| Pattern | Assignment | Characteristic |
|---|---|---|
| Plant-specific | One per plant | Each site buys independently |
| Company-code specific | One per company code | Buying consolidated per company |
| Cross-company (central) | Not assigned to a company code | Group-wide negotiation |
For central purchasing, leave the organisation unassigned to a company code and assign it to several plants. Group buying power then produces terms that every site can use.
Purchasing groups
A purchasing group represents a buyer or buying team. It is not an organisational unit but a way of dividing responsibility.
Setting a default on the material master purchasing view means requisitions and orders pick it up automatically, expressing assignments such as electronics to group 001 and packaging to 002.
Vendor account groups
| Group | Use |
|---|---|
| Standard vendor | Ongoing supply relationship, all layers |
| One-time vendor | A single transaction; address entered on the document |
| Subcontractor | Processing suppliers, with subcontracting handling |
| Employee | Used where employees are reimbursed as vendors |
Vendor evaluation
| Criterion | What is measured | Data source |
|---|---|---|
| Price | Comparison with market and other suppliers | Info records, order history |
| Quality | Defect rates, complaints | QM |
| Delivery | On-time and in-full performance | Receipts against order dates |
| Service | Responsiveness, flexibility | Manual scoring |
Criteria are weighted into an overall score, useful for supplier reviews and price negotiation. The scores mean something only if receipt and quality data is entered accurately in the first place.