Customer master Data

SAP Customer Master Data process.

1. CUSTOMER MASTER DATA CREATION

Customer Master is primary master data in SAP SD. The customer master data contains the information about
business transaction are recorded and executed by the system. A master data contains the information about
pre-agree rules and regulation with organization uses to do the business with them.
The customer master data contains key elements like complete address of customer, agreed payment terms,
bank data and delivery methods.
The classification of the customer master data based on partner function like Z001 – Sold to Party, Z002- Bill to
Party, Z003- Ship to Party, Z004 – End user Party, Z005 – Alternative Party and IC – Intercompany customer
(Internal customer of the business groups) rest of the used for External purpose for trade execution.

Z001: Sold to Party (SP): will have six-partner function as said above by default when you create SP.
Z002: Bill to Party (BP): only one partner function i.e. Bill to party
Z003: Ship to Party (SH): only one partner function i.e. Ship to party
Z004: End user Party (EU): only one partner function i.e. End user
Z005: Alternative Payee Party (AP): Only one partner function i.e. AP
IC: Intercompany customer (IC): will have six-partner function as said above by default when you create
SP.
Note: Z001 to Z005 (SAP Standard account groups for classification of customer master)
Bill to Party, Ship to party, End use party and Alternative party mandatory to attach or link with Sold to
party.

3. Customer Master Data correlates with different functionalities in SAP


How Customer Master Data work’s.

4. Creation of customer master data go to SAP easy screen go to command as shown in figure
Enter T-Code XD01 in Command field.



New window will open. Enter the following details –

Select the account group from the list based on your requirement to create master data like Z001 –
Sold to Party, Z002- Bill to Party, Z003- Ship to Party, Z004 – End user Party, Z005 – Alternative Party
and IC – Intercompany customer

5. Customer number like –
Customer number is called number range in SAP either internal or external generated by the system.

Company code details like −
 Company code: The 4-digit numeric code given by the user based upon the country to which master
data maintained.

Sales Area details like −
 Sales Organization: This is 4-digit code Numeric or Alphanumeric given by the user based upon the
country to which Sales org. maintained for the Customer Master.
 Distribution Channel
 Division
In case you want to take reference from an existing customer to create customer master, you can use the reference
option.

Once all the details are entered click the Tick mark or hit enter.

6. Customer master data has three key segments like;
 General Data
 Company Code Data and
 Sales Area Data.
GO TO GEN ER AL D ATA
Enter the detail in Address Tab screen as below in General data –


 Enter the title and name of customer.
 Enter search term, for searching customer.
 Enter Street / House Number.
 Enter District / Postal code / City / Country / Region.

Click on International Version.

International version TAB used for maintaining International language.

7. Enter Data in Control Data Tab Screen Field in General Data--

 Industry Type
 Enter Tax Number , VAT, GST number


Enter Data on Payment Transactions tab in General Data --

 Click on the Payment Transaction tab.
 Enter Bank City / Bank Key / Bank Account / Account Holder Name.
 To enter more detail about bank, click on Bank Data Button and new window open.

8.  Enter bank name / region
 Enter City
 Enter Swift Code
Click on Tick Button.

GO TO C OMPAN Y C OD E D ATA
Press button to enter the Company Code Data view.
Enter the detail in Account Management Tab screen as below in Company code data --
Click on Customer Master – Company Code Data > Account Management

 Enter Reconciliation account
 Enter Sort key

9. Note: Reconciliation account is sub ledger account in SAP must be assigned to every customer and
Vendor master record. It ensure that when we post the transaction to particular customer account balance
automatically effect on Balance sheet.

Enter the detail in Payment transaction Tab screen as below in Company code data –


 Enter terms of payment
 Enter Tolerance group
 Enter Payment method
 Enter check the payment history record

Enter the detail in Payment transaction Tab screen as below in Company code data --

10.  Enter Dunning procedure
 Enter dunning clerk
 Enter dunning block

GO TO SALES AR ED D ATA
Enter the detail in sales Tab screen as below in Sales area data --


 Enter Customer pricing procedure
 Enter Price list.

Enter the detail in shipping Tab screen as below in Sales area data --

 Enter Delivery Priority : High/ Medium/ Low
 Enter Shipping condition

11. Enter the detail in Billing Tab screen as below in Sales area data --

 Incoterms
 Terms of Payment
 Account assignment group.
 Taxes
Enter the detail in Billing Tab screen as below in Sales area data --

Click on Save Button.

Customer 0000000612 has been created for company code 0001 and sales org. 0001.

12. Here we can attach multiple Bill to party, ship to party, alternative party and End user party to respective
Sold to party.
Note : By default Bill to party, ship to party, alternative party and End user party will created for Sold to
party and its depends up on the nature of the business of the organization.
When you create a master record for a customer, you must select an account group. The account group
determines which master data will be used for a customer, including the valid partner functions.
If a customer, who places an order is the same who receives the goods, invoices and pays the order you
need to create the customer master record for the sold-to party where you will be able to enter data
required for other partner functions.
In SAP, the address information which is stored in the customer master data under the Address tab is
used in the web store as the billing address of a customer.
For customers who register in the web store online the billing address is used as the shipping address,
but a customer can enter the custom shipping address.
Business customers can have multiple shipping addresses. To add a shipping address to a customer in
SAP you should add the Ship-to party partner function to the customer. This can be done in the sales
area data of the customer under the Partner Functions tab. To add multiple shipping addresses you will
need to add multiple corresponding ship-to parties.

13. Contact person creation in customer master
Contact person is a representative or point of contact for company (customer).
T. code VAP1/ VAP2/ VAP3
Enter T. code VAP1 on command

Enter Customer ID to which contact details need to maintain. Hit enter following window display.

Enter
 Function field
 Last name
 First name
 Phone number / Fax number
 Email Id
Now click on Business address TAB
Here maintain only First name, last name and Country code.

14. Customer Credit Management
Adding, changes and removing credit limit to respective customer account. The customer credit limit will be
add/change/ removing based on approval from country controller from finance team.
T. code: FD32
Multiple outstanding receivables or bad debts can have a considerable impact on company's
performance.

Using Credit Control , you can minimize your credit risk by defining a credit limit for your customers.

In SAP , Credit and risk management takes place in the credit control area. If your credit management is
centralized, you can define one credit control area for all of your company codes. On the other hand, if
your credit policy requires decentralized credit management, you can define credit control areas for each
company code or each group of company codes.

A credit control area is used to define, and control, customer credit limits.

We can Maintain Credit Control Area Master Data for a customer:

Step 1) Enter Transaction Code FD32 in SAP Command Field

The following window appears

15. Step 2) In the next screen, Enter the Following
Enter Customer Id for the Customer for which you want display the Credit Limits
Enter the Credit Control Area
Check Central data section

Step 3) In the next screen ,Maintain the Credit Management Data for the Customer

Step 4) Press "Save" button from the SAP Standard Toolbar for save the changes
made in the credit limits

16. Bill to Party, Ship to Party, End user party and alternative party Creation
Bill to Party, Ship to Party, End user party and alternative party will created similarly to Sold to party
creation but some tabs and fields different from sold to party creation and also depends up on the nature
of the business of the organization.
Note : Every Bill to Party, Ship to Party, End user party and alternative party it is mandatory attach with
any sold to id based on business use.

Most of the companies and SAP standard follows the following account group while creating master Data.
Z001: Sold to Party (SP)
Z002: Bill to Party (BP)
Z003: Ship to Party (SH)
Z004: End user Party (EU)
Z005: Alternative Party (AP)
IC: Intercompany Customer (IC)

17. Mass changes in Customer Master Data.
Go to T. code XK99/ XD99
Customer Mass changes can be done via T code XK99 or XD99 buy using tables of customer master
data.

18. Tables in Customer Master SE16.
Table Name Description
KNA1 General Information
KNB1 Company Code
KNVV Sales Area
KNBK Bank Data
VCNUM Credit Card
VCKUN Credit Card Assignment
MASSKNVK General Data in Customer Master
KNVK Contact Person
KNVP Partner Functions
MASSKNVK Contact Partner
MASSKNVD record sales request form
KNVL Customer Master Licenses
KNVI Tax Indicator
KNVA Unloading Points
KNAS VAT registration numbers general section

19. Customer Master Data relation with accounts receivable

20. How to extract data from SE16

Tables – SE16
Type the T code SE16 on command and it display following window.

Give the table name like KAN1 for general data, KNB1 (company code data) and KNVV (Sales Ares data)
Hit enter.


Enter data on desired fields to extract the data. The results can be displayed by clicking the button “Execute” or F8.
The following result is displayed below.

21. Normally, not all fields of a table can be displayed because the list width is restricted to 1023 characters at maximum.
To display the details of a data record, the corresponding line must be double-clicked. Then you get the following
screen:

On above screen double click on each line item for details view as shown below