6/21/23, 10:50 PM How to create a BP – Business partner | SAP Blogs

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Gaurav Misri
August 6, 2019 | 7 minute read

How to create a BP – Business

partner
 12  67  175,303

Business Partners

Business Partner can be created as a person, organization or a group in which we

has some business interest.

It is a single transaction to create, edit, and display the master data. You can
assign different roles for a single business partner which implies whether this BP
is a customer or a vendor or both.

This new approach of “principle of one” rule in SAP S/4 HANA offers a single
transaction code to be used to create master records (except for materials which
is still created by MM01).

All the popular Tcodes such as XK01, MK01, XD01, FD01,etc have now become
obsolete

In S4 HANA, there is only 1 tcode to create customers as well as vendors ,i.e, BP.

Business Partner creation

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Transaction Code –  BP.

Business Partner General Data

You will get a default role 000000 (Business Partner General).

The Business Partner roles you assign to a business partner reflect the functions

it has and the business transactions in which it is likely to be involved.

Select the grouping from drop down which decides the number range.

Number Range

Internal Number Range –Business partner numbers that are assigned internally

by SAP when a user attempts to create.

External Number range: Business Partner Number has to be provided manually

when creation of BP.

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Enter the all mandatory fields for Business Partner General and then save.

We can mark the field mandatory/Optional based on the business requirement.

After entering data click on save.

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Customer

Extend BP to Customer Role FLCU00 for Financial Accounting.

Click on Company code and enter the company code for which you wanted to
extend the customer:

Maintain all the mandatory fields and then save.

Note: Here in the Company Code Section customer number is presented as

<EXTERNAL>.

After saving it will get updated same as BP number.

Go to Account management tab:

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Reconciliation Account: We cannot post directly into recon accounts. We can post
at sub ledger (Customer) level, it will hit recon GL at the time of general ledger
view in the document.

Go to payment Transaction Tab:

Payment Term:   Terms of Payment are conditions agreed between business

partners for the payment of invoices. The conditions define the due date and the
cash discount offered for payment of the invoice within a certain period.

Go to Correspondence tab:

Dunning Procedure: Dunning us for to give remainder to customer, In dunning

procedure field we use dunning variant to correspondence.

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Go to Customer Status tab:

Posting Block:

1.All Company Codes: Indicates that the account is blocked for posting for all
company codes.

2.Selected company codes: Indicates that the account is blocked for posting in
the specified company code

Extend Customer for Sales Data with Role FLCU01.

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Press Sales and Distribution data button and fill all the mandatory fields.

Sales district: The customer belongs to a certain district

Customer group:

System identifies a group of customers Ex: Wholesaler or Retailer for pricing or

generating statistics.

Order probability: The Probability of the customer confirming the inquiry or

quotation item as a part of the sales order.

Exchange rate type: We can specify the exchange rate type of this customer
depending upon the country of the

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customers.

Product proposal procedure: In product proposal procedure we determine how

the product proposal should be

displayed in the sales document.

Price group: Ex: [01 = Bulk buyer]

 A group of customers who shares the same pricing requirements.

Customer pricing procedure: Ex: [1 = Standard]

The value of this field will be taken into consideration by the system to determine
pricing procedure.

Price list: Ex: [01 = Wholesale]

The value of this field can be taken into consideration to create condition table.

Shipping tab:

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Delivery priority: Ex: [01 = High]. The delivery priority assign to an item.

Use: We can assign delivery priority to either a material or to a combination of

customer and material.

When we process deliveries collectively we can use delivery priority as one of the
selection criteria.

Shipping conditions: Ex: [10 = Immediately]

The value of this field will be taken into consideration by the system to determine
shipping point (outbound

delivery) along with loading group from the material master and delivering plant
of line item.

The value of this field also will be taken into consideration to determine ROUTE

Delivering plant:

We can specify the plant from which the goods should be delivered to the
customer.

Use: The plant is automatically copied into the sales order item as a default value.

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Partial deliveries: It indicates whether sales order must be delivered completely in

a single delivery or whether the order can be partially delivered and completed
over several deliveries.

Partial delivery for item: If the business wants to allow partial deliveries for item
that we can specify here.

Ex: Value “D” stands for no limit to subsequent deliveries.

Maximum partial deliveries: [9] The line item can be spitted into partial deliveries
up to “9” only (system

proposes this value). That means we cannot do more than “9” partial deliveries
for line item. This value is not

worthwhile if we set “D” in the partial delivery for item field.

Billing Tab:

Check Rebates: If the business wants to process Rebates for this customer

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Invoice dates: It identifies the calendar that determines the schedule of billing
dates for

the customers.

INCO TERMS:

Terms of payment:

Account assignment group: We can use this field to determine Revenue accounts,
sales deductions, etc as an

account determination. These fields will be used as a mandatory field for account
determination (SD and FI/CO

integration).

Output Tax: It specifies the tax liability of the customer based on the tax structure
of the customer’s country.

Use: We use the tax classification to specify whether the customer is liable for
sales taxes Ex: VAT, sales tax, etc.

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Then Save.

****Customer Master Data is saved****

6.2. Vendor

To create FI Vendor, we can extend the Business Partner already created with
Role FLVN00 (FI Vendor).

The role can be selected from dropdown.

Click on Company Code.

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After selecting Company code press Enter and then fill the Recon account and
other mandatory fields.

Go to Account Management tab:

Reconciliation Account: We cannot post directly into recon accounts. We can post
at sub ledger (vendor) level, it will hit recon GL at the time of general ledger view
in the document.

Go to payment Transaction Tab:

Payment Term:   Terms of Payment are conditions agreed between business

partners for the payment of invoices. The conditions define the due date and the
cash discount offered for payment of the invoice within a certain period.

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Payment Method: which may be used in automatic payment transactions with

this customer/vendor if you do not specify a payment method in the item to be
paid.

Go to Withholding Tax tab:

Withholding tax Type: This indicator is used to classify the different types of
withholding tax. Withholding tax types are to be distinguished from withholding
tax codes, to which are allocated the withholding tax percentage rate.

Withholding Tax Code: One or more “withholding tax codes” are assigned to each
withholding tax type. One of the things these codes determine is the various
percentage rates for the withholding tax type

Note that when processing a business transaction, no more than one withholding
tax code can be assigned per withholding tax type. If the business transaction is
subject to more than one withholding taxes, these must be represented in the
system by defining various withholding tax types.

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Go to Vendor Status tab:

Posting Block:

1.All Company Codes: Indicates that the account is blocked for posting for all
company codes.

2.Selected company codes: Indicates that the account is blocked for posting in
the specified company code.

But after saving Vendor number will come same as BP number.

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Tables LFA1 and LFB1 gets updated.

Extending Vendor to Purchasing Data, select Role FLVN01 from dropdown.

Select Purchasing Data and then choose Purchasing Org and press enter.

Enter all the mandatory fields.

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Table LFM1 gets updated.

In a display mode, you can check all the roles Business partner having.

Save the vendor.

**** vendor master created successfully****

This is how a BP is created as a vendor as well as a Customer.

PS – What am I missing here? Let me know in the comments and I’ll add it in!

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Alert Moderator

Assigned Tags

MM Purchasing

SD (Sales and Distribution)

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12 Comments

You must be Logged on to comment or reply to a post.

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Srinath Velagala
August 7, 2019 at 8:54 am

Good one Gaurav. Informative.

Like 1 | Share

Shiva Chappadi
August 7, 2019 at 10:44 am

Helpful information. Thank you..

Like 1 | Share

Santhosh Kolla
August 8, 2019 at 2:58 pm

Good One Gaurav.. Keep posting..

Like 1 | Share

Ramkumar RV
September 7, 2019 at 3:09 am

Thanks Gaurav for sharing this blog.

Like 1 | Share

A Kader
January 16, 2020 at 11:41 am

Nice.. Thank you.

Like 0 | Share

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Nalini N
February 17, 2020 at 12:32 pm

Hi,

BP CREATED 611888

Extended BP CATEGORY ROLE CVI:FI CUSTOMER NEW When I select the company code I could see the
only company code field is enable I selected company code ticked mark the BP clicked the adopt company
code populated the and the customer external field is disable.

How to enter customer external here?

How to get account management tab to enter reconciliation account ?

Thanks,

Nalini

Like 0 | Share

Fernando Bail
June 30, 2020 at 7:17 pm

Dear, please how to extend a BP to company data (LFB1 table ) and purchasing data (LFM1 table) by bapi
or similar? What bapi could be used?

Like 1 | Share

Youssef Ezzikhe
May 2, 2021 at 7:37 am

Thanks Gaurav for sharing this blog. It will be very nice if you can update how to add customer credit limit
in BP.

Regards

Tauseef

Like 0 | Share
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Sally Xu
September 6, 2021 at 2:39 pm

HI Gaurav Misri

Would you please explain how to use BP on order for scheduling and confirmation?

Instead of using personnel no, can we use BP for each individual that works on work order?

Thank you so much,

Sally

Like 0 | Share

引张
November 29, 2021 at 9:45 am

nice ，thanks  a lot

Like 0 | Share

Mahendra Rao
May 5, 2023 at 3:30 am

how to create BP with reference

Like 0 | Share

Mahendra Rao
May 5, 2023 at 3:30 am

how to create a BP with reference

Like 0 | Share

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