Vendor creation different t codes

[former_member742331]

Hi experts,

Though there is t code XK01 for vendor creation. Why MK01 and FK01 required?

I know that using MK01 vendor can be created only at Purchasing Org lvl and FK01 used to create at CoCd level. My concern is that why exactly we require those or why vendor need to be created only at those level. Is there any particular reason for that?

Kindly help here.

Thanks in advance

[sanilbhandari]

Hi 02dilip

Some of the reasons, I could think of why we have MK01 and FK01

1) Segregation of duties between the finance and purchasing departments

2) All companies may not use purchasing functionality and can post invoices using only FI Invoices which means that purchasing specific views of vendor master are not required.

Why vendor are required at company code level: Well vendors represent a current liability of a company, which are a short term financial obligations that are due within a year or within a normal operating cycle. An operating cycle, also referred to as the cash conversion cycle, is the time it takes a company to purchase inventory and convert it to cash from sales. So you need to have a vendor at a company code level

Why vendor is required at a level of a purchasing organization: You need to know what is meant by purchasing organization first. The purchasing organization is an organizational unit which procures articles and negotiates general purchase price conditions with vendors . It is responsible for all purchasing transactions in the company. Use. A purchasing transaction is processed completely by one single purchasing organization. So if you need to track your purchasing organization with a supplier, you off course need to create a supplier or vendor at that level and that is why you have vendor also with a purchasing view.

Hope this clarifies.

Thanks & Regards

Sanil Bhandari

[former_member742331]

Thanks for the info