SAP FICO

(Business Partner Configuration)

BY PRANAV JADHAV
(SAP Consultant | S4HANA Finance | MM)

Pranav Jadhav
[email protected]
Definition.
A person, organization, group of persons, or group of organizations in which a
company has a business interest.
You use this business object for a variety of business transactions.
You create and manage your business partners (BP) centrally along with the
roles they assume for your company. To do so, you define the general data of
the business partner once and you assign business partner roles (BP roles) to
the business partner. Specific data is stored for each business partner role. In
this way, you do not store redundant data since the general data is
independent of a business partner’s function or of application-specific
extensions.
When you first create a business partner in the system, the BP role General
Business Partner is automatically assigned to the business partner.

Customer-
Customer is the one to whom we (Company) sell the material.
A Customer is a Business Partner to which goods and services are sold and/or
delivered. A Business Partner can be a Customer and a Vendor at the same
time if, for example, your Customer also supplies goods to you.
A Customer master holds information about the Customer such as their name,
address, bank details, tax details, and delivery and billing preferences. This
Customer information is used and stored in transactions such as sales orders,
deliveries, and invoices.
Some Customer information is specific to a company (known as company code)
or sales unit (known as sales area) within your organization.

Pranav Jadhav
[email protected]
Vendor/Supplier-
Vendor is the one from whom we (Company) buy the material.
A Vendor (or Supplier) is a Business Partner which delivers and sells goods and
services to your organization. A Business Partner can be a Vendor and a
Customer at the same time if, for example, your Vendor also buys goods from
you.
A Vendor master holds information about the Vendor such as their name,
address, bank details, tax details, and billing preferences. This Vendor
information is used and stored in transactions such as purchase orders, goods
receipts, and Vendor invoices.
Some Vendor information is specific to a company (known as company code) or
purchasing unit (known as purchasing organization) within your organization.

Pranav Jadhav
[email protected]
 Business Partner configuration

1. Activation switch for functions-

Execute-

This options should be on.

Pranav Jadhav
[email protected]
 2. Define account groups with screen layout. (customers)
T code- OBD2
Customer account groups in SAP are used to classify customers into business
partner functions that fit best the nature of the business transaction. Customer
account groups control the customer hierarchy containing the customer master
record. It determines the role of a customer and customer master data.
Path-

Execute-
New entries.

Save.

Pranav Jadhav
[email protected]
 3. Create number range for customer. T code- XDN1
Path-

Execute.
Interval.
Click on free interval and take name for free interval.

Save.

Pranav Jadhav
[email protected]
 4. Assign Number Ranges to Customer Account Groups.
T code- OBAR
Path-

Execute.

Assign your number range front of your customer account group.

Pranav Jadhav
[email protected]
 5. Define Account Groups with Screen Layout (Vendors)
T code- OBD3
You use vendor groups to classify your vendor records into groups that share
similar characteristics. You define vendor groups adding vendor records.
Path-

Execute. New entries.

Save it.

Pranav Jadhav
[email protected]
 6. Create Number Ranges for Vendor Accounts.
T code- XKN1
Path-

Execute-
Interval. Click on free interval.

Save it

Pranav Jadhav
[email protected]
 7. Assign Number Ranges to Vendor Account Groups
T code- OBAS
Path-

Execute-
Assign number range front of your vendor account group.

Save it.

Pranav Jadhav
[email protected]
 8. Define Number Ranges for business partner.
T code- BUCF
Path- Cross-Application Components

Execute.
Click on free interval and take name.

Save.

Pranav Jadhav
[email protected]
9. Define Groupings and Assign Number Ranges.
Path- Cross-Application Components

Execute.
New entries.

Save.

Pranav Jadhav
[email protected]
10.Define BP Roles.
SAP BP Role Category is the highest level of Business Partners, where business
partner’s roles are defined for an organization, group, and a person. Standard
BP roles are defined in the SAP S4 Hana system, we can use those standard
roles or you can create new roles by coping standard roles and modifying as
per business client requirements of business partner in SAP.
Path- Cross-Application Components

Execute.
These below are standard BP role. No need to crate new you can use this.

Pranav Jadhav
[email protected]
11.Define BP Role for Direction Customer to BP
In this activity, you will assign Business Partner Roles to the customer account
group in which the customer master record has to be created while creating
the business partners in SAP. When you create a business partner for the
customer, the system creates a customer master record with the relevant group
that is assigned in this activity.
Path- Cross-Application Components

Execute. New entry.

Enter your customer grouping to customer BP role.

Pranav Jadhav
[email protected]
12.Define Number Assignment for Direction BP to Customer
In this BP configuration, you will assign Customer account groups to business
partner groupings, so that customer data is automatically updated at the time
as a Business partner is a process.
Path- Cross-Application Components- SAP Business Partner

Execute.
New entries.

Assign BP grouping to customer grouping.

Pranav Jadhav
[email protected]
13. Define BP Role for Direction Vendor to BP.
In this activity, Vendor Account Groups are assigned to BP Roles in which
vendor master has to be created.
Path- Cross-Application Components- SAP Business Partner

Execute.
New entry.

Enter your vendor group and BP role.

Pranav Jadhav
[email protected]
14.Define Number Assignment for Direction BP to Vendor.
In this BP configuration, you will assign vendor account groups to business
partner groupings, so that vendor data is automatically updated at the time as
a Business partner is a process.
Path- Cross-Application Components- SAP Business Partner.

Execute.
New entry.

Enter your BP grouping and vendor account grouping.

Pranav Jadhav
[email protected]
15.Define Tolerances for Customers and Suppliers. T code- OBA3
The tolerance group is very important to define in the SAP system to facilitate
dealing with the differences in payment.
Path- Financial Accounting

Execute, new entry.

Save.

Pranav Jadhav
[email protected]
16.Create GL Accounts T code- FS00
Reconciliation account is a GL account through which you can view the balance
amount that must be paid to vendors or balance amount that is get from
customers. Reconciliation account is created normally as we create a GL
account using FS00 transaction.
Sundry Debtors
Open. Click on crate and take sundry Debtors account number range number
range.

Pranav Jadhav
[email protected]
Save it.
Sundry Creditors-
Click on crate. Take a sundry creditors number range.

enter.

Pranav Jadhav
[email protected]
Save .

Pranav Jadhav
[email protected]
17.Create Business Partner. ( vendor and customer).
T code- BP
Execute. Click on organisation.

You can see first we have to crate BP that BP role come by default. After that fill
the basic details.
Save.

After save you will get the BP (business partner number).

Pranav Jadhav
[email protected]
After that we crate the vendor for that we have to change BP role. Click on the
change button and select the FLVN00.

Click on company code and enter company and press enter and take sundry
creditor account.
Save it.
You will get the vendor account number.

Pranav Jadhav
[email protected]
After that select the FLCU00 to crate the customer account.
Click on company code enter the company code
Enter take a sundry debtor account number.
Save it.

You will get the customer account number.

Pranav Jadhav
[email protected]