SAP - Create a Customer Master (XD01)

Summary

In this video, we demonstrate how to create a customer in SAP using the transaction code XD01. We guide you through navigating to the appropriate sections within the SAP interface, entering necessary details such as business partner number, address, sales organization, and payment terms. The process includes setting up roles, defining unloading points, and configuring billing and shipping information. By the end, you'll have a fully configured customer profile, ready for use in your sales and distribution processes.

Takeaways

• 🔑 The video demonstrates creating a customer in SAP using the T code XD01.
• 🔍 The process begins by navigating to the 'Create and Complete' option under 'Business Partner' in the Sales and Distribution section.
• 🏢 The customer is created as an organization, distinguishing between individual and organizational sales to ensure appropriate sales processes.
• 🆔 A business partner number is assigned, and the company number is added for identification purposes.
• 📝 The 'External Number Assignment' is selected for the business partner, and the role is set as 'FII Customer'.
• 🏷️ The customer's details, such as name, address, postal code, and country, are entered, with the option to customize based on the user's project.
• 📍 The transportation zone is updated in the extended area of the street address, with an example given as 'Region West'.
• 📋 The customer's general data includes assigning an external customer number and maintaining other fields as default.
• 📦 The unloading points are defined, with an example of 'doc one' using the US calendar.
• 💼 Account management involves entering a reconciliation account, such as 'Trade Accounts Receivable', and setting up a sort key.
• 💰 Payment terms and conditions are specified, including immediate payment and a tolerance group, with an option to record payment history.
• 📈 Additional roles for the customer, such as 'FLCU01', are created, allowing for further customization of sales and distribution settings.
• 📊 Sales and distribution information includes assigning a sales organization, distribution channel, and division, with examples provided.
• 📝 Order information is filled out, including sales district, order probability, currency, and pricing fields for statistical purposes.
• 🚚 Shipping details specify delivery priority, order combination, and the delivery plant, with an example of the Miami plant.
• 💼 Billing details include Incoterms, such as 'FOB' (Free On Board), and payment terms are set to 'Payable Immediately'.
• 📋 Account assignment groups are set for customer accounting recognition, distinguishing between domestic and foreign revenues.

Q & A

What is the purpose of the video?

The purpose of the video is to demonstrate how to create a customer in SAP using the T code XD01, which is essential for selling goods to that customer.

What is the T code used for creating a complete customer in SAP?

The T code used for creating a complete customer in SAP is XD01.

What is the difference between selling to an individual and an organization in SAP?

In SAP, selling to an individual and an organization requires different processes. It's important to distinguish between the two to ensure the sales process works appropriately for each, including different invoicing and payment terms.

What is the significance of the business partner number in creating a customer in SAP?

The business partner number is a unique identifier for the customer in SAP, which helps in managing and tracking sales and distribution activities related to that customer.

Why is it necessary to update the transportation zone in the customer creation process?

Updating the transportation zone is necessary to ensure that logistics and shipping processes are correctly configured for the customer's location, which can affect delivery times and costs.

What is the role of the external customer number in the customer creation process?

The external customer number is an identifier that can be used for external systems or for customers who have their own numbering system, facilitating integration and identification across different systems.

How does the video script guide the user to set up the customer's address in SAP?

The script instructs the user to fill in the street number, city, postal code, country, region, and language for the customer's address, and to update the transportation zone accordingly.

What are the payment terms set in the video script for the customer?

The payment terms set in the video script for the customer are 'payable immediately' with a tolerance group of GBI.

What is the significance of the sales district in the customer creation process?

The sales district is important as it helps in organizing and managing sales activities geographically, which can influence sales strategies and regional sales targets.

How does the script describe setting up the customer's pricing and sales conditions?

The script describes assigning a pricing group for statistical purposes, such as 'Bulk Buyers', and a customer pricing procedure, which is the standard procedure numbered one. It also mentions setting the delivery priority and enabling order combination.

What is the importance of the Incoterms in the customer creation process?

Incoterms, such as FOB (Free On Board), are important as they define the seller's responsibilities and obligations regarding the delivery of goods, which can impact the logistics and legal aspects of the sale.

How does the script guide the user to assign the customer to accounting recognition?

The script instructs the user to set up an account assignment group for the customer under 'Domestic Revenues', which is important for accurate accounting and revenue recognition in SAP.

Outlines

00:00

😀 Creating a Customer in SAP

This paragraph outlines the process of creating a customer in SAP using the T code XDS. The user navigates to the 'Create and Complete' option under 'Business Partner' and 'Customer'. The customer is created as an organization, distinguishing it from individual customers, which is crucial for the sales process. The user assigns a business partner number, company number, and selects the first external number assignment. The business role is set as 'FII customer'. The customer's details such as name, address, postal code, country, and language are entered. The transportation zone is updated, and the address is finalized. The user also assigns an external customer number and moves on to define customer unloading points.

05:02

📝 Setting Up Customer Account Management

The second paragraph details the setup of account management for the newly created customer in SAP. The user enters the company code and locks it in. The reconciliation account for trade accounts receivable is selected, and a sort key is assigned. The planning group for domestic customers is specified. Payment terms are set to 'payable immediately', and a tolerance group is chosen. The user also enables the recording of payment history. Upon switching to the 'customer' role, the user saves the work done in the original role and proceeds to set up sales and distribution information, including sales organization, distribution channel, division, sales district, order probability, currency, and pricing details.

10:09

🚚 Configuring Shipping and Billing for a Customer

In this paragraph, the focus is on configuring shipping and billing settings for the customer in SAP. The user sets the delivery priority and enables order combination, choosing a specific plant for delivery. Shipping conditions are standardized, and the maximum number of partial deliveries is set. The user then moves on to define Incoterms as 'FOB' (Free On Board) and assigns the customer number. Payment terms are reiterated, and the account assignment group for customer billing is specified. The output tax section is completed with tax classification, ensuring that the customer setup is comprehensive and ready for use in the ERP system.

Keywords

💡SAP

SAP is an enterprise resource planning (ERP) software used by organizations to manage business operations and customer relations. In the video, SAP is the platform where the process of creating a customer profile is being demonstrated, emphasizing its role in streamlining sales and distribution processes.

💡T code XD01

T code XD01 is a specific transaction code used within SAP to create a new customer master record. The script mentions using this code to initiate the customer creation process, highlighting the importance of transaction codes in navigating and executing tasks within the SAP system.

💡Business Partner

A business partner in the context of the video refers to an entity with which the company interacts, such as a customer or a vendor. The script discusses creating a business partner as an organization, which is crucial for differentiating between individual customers and organizational customers in the sales process.

💡External Number Assignment

External number assignment in SAP is a method of assigning a unique identifier to a business partner. The script specifies selecting the first external number assignment, which is important for tracking and managing customer relationships within the system.

💡BP Role

BP Role stands for Business Partner Role, which defines the specific role a business partner plays in transactions, such as 'customer' or 'vendor'. The script uses 'FII' for customer, indicating the role of the business partner being created in the video.

💡Sales and Distribution

Sales and distribution is a module within SAP that manages the sales process from order to delivery. The video script discusses navigating to this module to create a customer, which is a fundamental step in setting up the sales process within the ERP system.

💡Company Code

A company code in SAP is used to represent a separate financial accounting entity within an organization. The script mentions entering a company code, which is essential for associating the customer with a specific part of the business for accounting and operational purposes.

💡Pricing Group

A pricing group in the context of SAP is used to categorize customers or products for pricing purposes. The script refers to assigning a 'Bulk Buyers' pricing group to the customer, which would influence how prices are determined for sales transactions involving this customer.

💡Customer Pricing Procedure

A customer pricing procedure in SAP defines the rules for calculating the price of goods or services for a specific customer. The video script selects a standard procedure, indicating a predefined set of rules that will apply to the newly created customer.

💡Incoterms

Incoterms, short for International Commercial Terms, are a set of international rules for the interpretation of trade terms in contracts. The script mentions using 'FOB' (Free On Board), which is a common Incoterm indicating the seller's responsibility ends once the goods are delivered on board a ship.

💡Account Assignment Group

An account assignment group in SAP is used to determine how revenue from sales transactions is recognized in the accounting system. The script refers to assigning the customer to 'domestic revenues', which would affect how the sales to this customer are recorded in the company's financial statements.

Highlights

Creating a customer profile in SAP using the XD01 transaction code.

Differentiating between individual and organizational customers for appropriate sales processes.

Assigning a business partner number and company code for the new customer.

Selecting the first external number assignment for vendor consistency.

Assigning the business role FII for a customer in the BP role setup.

Entering company details such as name, search term, and address.

Updating the transportation zone for the customer's address.

Assigning an external customer number for identification purposes.

Defining unloading points for customer delivery logistics.

Setting up the company code and its relation to the customer.

Entering reconciliation account details for trade accounts receivable.

Configuring sort keys and planning groups for customer management.

Establishing payment terms and conditions for the customer.

Recording payment history by enabling a specific checkbox in the setup.

Switching to a new BP role for further customer setup.

Filling in sales area information including sales organization and distribution channel.

Configuring order information with sales district and order probability.

Setting currency and pricing details for customer transactions.

Defining shipping preferences including delivery priority and plant selection.

Selecting Incoterms and specifying payment terms for customer billing.

Assigning account assignment groups for revenue recognition in accounting.

Completing customer setup and saving changes in the system.

Transcripts

…

In this video we're going to create a customer that we can sell our goods to And we'll be doing this in SAP.

Using the create complete customer that's T code XDS…so to get there

, let me close up all my folders from

previous navigation, I'm going to go into logistics.

Sales and distribution. Master data.

Business partner. Customer.

Create. And complete So that's XD zero one

…Now when I get in there and

asks well how are you going to create this business partner I'm going to create them as an

organization…So a lot of companies sell both to individuals and

organizations and it's important to.

No which is which so that the sales process works

appropriately for each one Some you may invoice some you may demand up front.

Payment. So now we are going to.

Create our customer and we'll give them a business

partner number I'll give mine the number seven one.

Nine zero. And then I'll add my company number here.

You can add an appropriate business partner for you.

If you are working on one of my projects you'll add your own company number at the end

…The grouping

will be external number assignment.

Again just like you did for your vendor If you were following along for that one you want to make sure you select.

The very first. External number assignment.

And the BP role right now the business.

role right now is FII customer FLC You.

Zero zero new. That's fine We'll leave it there for now…So our

title will be company…And I have to fill in the name So we'll make this your

name…And company.

To the end. Okay Your name your number company or.

Whatever your customer company name happens to be.

Search term we'll use our typical.

SAP user ID search term. For that And

then…you can make this a whatever.

The street number house number you want

…

And then we'll go ahead and put this in Denver…Postal code 800

…

Countries U S region.

In our case that's a state. So this is something when.

A company gets SAP implemented They'll probably change this to reflect whatever country happens

to show up in this and change this to say region province state, whatever.

Language will be English…

So you can see there are a lot of commonalities in the business partner screen.

Between creating a customer business partner.

And a vendor business partner.

So one other thing we're going to need to do is we're going to update this.

Uh needed update the transportation zone. So that's going to be in the extended area of this

street address So we're going to have to expand that…And you see that shows up down

here below my mountain standard time for Denver.

So the transportation zone. want to select is region west So this is a west region.

Customer. So we're done with the address Tam Now we're going to go over here to customer.

General data…And when we get there

we're going to assign an external customer number.

And we'll call that one nine zero.

And your two numbers. You can leave everything else The same.

And we will move on to customer unloading points…So that's going to be a

little bit farther over here to the right So you may have to click that arrow to find this

particular tab depending on how big your screen is and how big your SAP window is.

And we're going to define a new unloading point We'll just call it doc one

…And we'll use the us calendar for this So…

this us calendar is important for loading docks.

At this point we can now click on the company code…And we'll enter our

company code You'll enter your particular company code Mine is a us 27 here…

And then I'll press enter…The lock that in and verify everything

…I could go down in here into the account management.

And let's uh enter the reconciliation account.

And we're going to use our trade accounts receivable account here and I can look that up.

Which I will do here. That's the only option I have available that's 110,000.

So that's the only. Control account that has been set up to communicate.

With the…sales and distribution module right now.

So we select that. We'll set up the sort key.

To be 0, 0 3…And you can see what that means.

By document date. And then our planning group will be.

E two. So that is for domestic customers…Those are the only

fields we need to fill in for this tab.

So let's go to the payment transactions tab and we'll enter some additional information.

Our payment terms will be payable immediately…Do net.

So the answer is zero zero 0 0 1.

And then our tolerance group will be in the GBI tolerance group

…And

we want to…Turn this checkbox

on…where we ask S SAP to record.

The payment history…So at this

point we're done with everything we needed in this BP role.

And what we're going to do now is we're just going to move right to the next role that we want to work on.

And that's going to be customer. F L C U.

Zero one. When I click on that.

You could see that SAP tells me you Hey

you're changing to another role but you haven't saved what you've done yet.

So, yes we do want to save what we've done So we'll

save the work we've done in the original role.

F L C U zero zero…And now you can see this refreshes tells

us we're now creating a new role for this same customer.

And lets us pick right up where we were. So let's go over to sales and distribution

…Up here…And

…Right here in this top header or sales area information we'll put in

our sales org And if you don't remember what it is, we'll look it up.

And we recall it starts with you E so that'll be for me

…And I want my.

Distribution to me wholesale. And division to be accessory So I can actually click this one right here.

And populate all three of those fields.

At once. So you eat 27 distribution

channel is warehouse division is a S.

And I can press enter just to. Validate those and look them up

…Now I'm going to go over to the orders information

down here…And I'm going to fill in the sales district

…So this is one we have Northern and

Southern sales districts Now remember when we assigned the customer the customer was in.

The Eastern or Western. District. So this is a good distinction in how you could set up a lot

of different regional breakdowns for different purposes within your ERP.

Sales district zeros are zero zero. Two.

And then our order probability will be a hundred percent So if we get an order You know it's a

hundred percent likely then uh we're going to follow through with it.

Currency USD That's already populated If it's not for you make sure you have it in there.

And then we need to fill in these two pricing.

Fields first statistical purposes. So the pricing group we're going to call this.

Uh a. Bulk buyers So this'll be one of our customers that we expect to buy from us

frequently And in large quantities.

And then the customer pricing procedure.

Is going to be we'll select the standard procedure which is on number one here

…So now we can.

over to the shipping tab…And I want my delivery priority to be normal

which is zero two…And then I want to check this checkbox order

combination…And I'm going

to use my Miami plant is my delivery plant.

So for me that will be. Miami.

27 So again you can see here for. The sales org I've got two choices.

I'll choose my Miami plant not my Dallas plant…And then under shipping

conditions…We will select zero one.

Standard…And then the number of maximum partial

delivery is we will allow is nine…All right.

So you got. good information in there. Now we need to set up how we're going to bill the

customer…So we'll skip past the billing documents section and we're going to go down right

to Inco terms…

And you can see there are a number of entries there we want to use.

Fob just plain old free or free on board

…And we could actually type in a little

uh description for those So we'll just call it a free onboard.

Go ahead and spell it out…And we will put in the customer number as well.

So for me that's seven one I know two seven Your ears will be whatever your customer number

happens to me…Okay Payment terms

…Payable immediately do net

…And then we go into the account assignment group customer

So how are we assigning this customer to um our accounting

…Recognition.

And here you can see well this is domestic revenues versus foreign revenues Some companies have

to split that out for reporting purposes.

Or affiliated companies. So this is just plain old domestic revenues for our company

…And that's the value We'll give that zero one.

And then for the output tax section we've got a little bit of the.

Same deal with the tax classification where the…column is a little bit squished not quite as much as it was before.

But we'll just put our zero in there…For all three of these values.

And at that point we have completed our work for this role.

In the customer as well. And we can click. save…And

we see changes have been saved Remember we've saved the customer And when we started working on

this second role, now we've just changed these values for this new role to the

same customer…All right So we've got our customer set up.

Let's go back to the main menu and see what we need to do next

…