The following tutorial guides you how to create vendor code in SAP step by step with screen shots.

SAP Menu Path : – SAP Menu >> Logistics >> Material Management >> Purchasing >> Master Data >> Vendor >> Central

Transaction code : – XK01

Enter transaction code XK01 in the sap command field and press enter

Enter the following data

1. Company code :- Enter company code

2. Purchasing Organization :- Enter Purchasing Organization

3. Account group : – Enter account group

Press enter to input the details of the vendor

Title : –  Select Company, Dr., Mr., Ms.

Name : – Enter the name of the vendor

Search : – enter the search term

Street Address : – Enter the street #, postal code city, Country, Region, City

Language : – Enter the language

Enter the VAT Reg No of the vendor

Enter the bank details of the vendor

Account data :– Enter the appropriate Reconciliation accounts, sort key

Payment transactions :- 

1. Enter the appropriate payment terms

2. Select the Chk double inv.

3. Enter the appropriate payment methods such as cheque payment, Bank transfer, Online transfer

Purchasing Organisation Data :-

1. Enter the order currency, terms of payment and incoterms.

2, Enter the appropriate  schema group, vendor

3. Select GR-based Inv. Verfication if invoice verfication is done after GR

4. Select Srv. Based inv. verf if invoice verification after service entry

5. Enter the partners for the appropriate partner functions

Press save icon to save the vendor master and vendor code in SAP is automatically generated. The vendor code is generated for respective purchasing organization and company code.