Akila Wedasinghe
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SAP S/4HANA Vendor Subrange & Plant Level Data
A comprehensive guide to understanding, configuring, and utilizing additional vendor data maintenance levels in S/4HANA
Vendor Data Maintenance Levels in S/4HANA
In SAP S/4HANA, vendor master data management provides flexibility through a hierarchical structure of data maintenance levels. This allows organizations to configure vendor relationships with the appropriate level of granularity to meet business requirements.
Standard Data Maintenance Levels
Before we explore the additional data maintenance levels, let's understand the standard hierarchy in S/4HANA vendor master data:
1. General Data (Business Partner)
Contains basic vendor information that applies across the entire organization, including name, address, identification numbers, and classification data. In S/4HANA, this is maintained at the Business Partner level.
2. Company Code Data
Contains financial and accounting information specific to each company code, including payment terms, reconciliation accounts, and tax information. This data is relevant for financial transactions.
3. Purchasing Organization Data
Contains procurement-related information specific to each purchasing organization, including order currencies, terms of delivery, and incoterms. This data governs how purchasing transactions are handled.
Note: Data Inheritance
The standard hierarchy follows an inheritance model. General data applies to all company codes, and company code data applies to all purchasing organizations within that company code. This allows for efficient data maintenance while providing flexibility when needed.
Additional Data Maintenance Levels
Beyond the standard levels, S/4HANA offers two additional ways to maintain vendor-specific data for more specialized scenarios:
Allows you to maintain vendor data specific to individual plants. This extends the standard hierarchy to provide plant-specific settings when vendors interact differently with different plants.
Plant-level data is location-centric, focusing on how vendor relationships vary based on which plant is receiving goods or services.
Allows you to maintain data for categories of materials from the same vendor. This enables you to define different settings based on material categories rather than organizational units.
Vendor subrange is material-centric, focusing on how vendor relationships vary based on what types of materials are being sourced.
Important to Understand
Both Plant Level Data and Vendor Subrange (VSR) are optional configurations. They provide additional flexibility for specific business scenarios but are not required for standard procurement processes. They should only be implemented when the standard hierarchy doesn't provide sufficient granularity.
When To Use Additional Data Levels
Understanding when to use each additional data level is crucial for effective vendor master data management:
- When delivery times differ depending on which plant is receiving the goods
- When payment terms need to be different based on plant location
- When orders for different plants need to be sent to different ordering addresses of the same vendor
- When the currency used for purchasing differs by plant location
- When minimum order values vary by plant
- When a vendor supplies distinct categories of materials with different terms
- When materials from the same vendor come from different warehouses based on category
- When payment terms differ based on material category rather than delivery location
- When you want to organize purchase orders by grouping similar items
- When you want to apply different discount structures to different material categories
Now that we have a broad understanding of these additional data levels, let's explore each one in detail.
Plant Level Data
Plant Level Data extends the vendor master data hierarchy by allowing you to define plant-specific settings for vendors. This additional level provides more granular control when vendor requirements or specifications vary by plant.
What is Plant Level Data?
Plant Level Data is vendor master information that is maintained specifically for a particular plant. It allows you to define different parameters for the same vendor based on which plant is involved in the transaction.
Think of it as asking: "How does this vendor interact differently with Plant A versus Plant B?"
Why Use Plant Level Data?
There are several scenarios where plant-level data becomes essential for accurate procurement processes:
Different Delivery Times
When a vendor's ability to deliver varies based on the plant location. For example, a vendor might deliver to a nearby plant in 5 days, but require 10 days for a plant in a remote location.
Location-Specific Payment Terms
When payment terms need to vary by region or country where the plant is located. For instance, different banking regulations or currency considerations might necessitate different payment terms.
Different Partner Functions
When orders from different plants need to be sent to different addresses or contacts within the vendor's organization, such as specialized ordering addresses for different regions.
Technical Capabilities
When a vendor has different technical integration capabilities with different plants. For example, EDI connections might be established with one plant but not others.
Real-World Example Scenarios
Vendor V1 supplies materials to two plants:
- Plant A is located close to the vendor's warehouse. Deliveries typically take 5 days.
- Plant B is in a different region, far from the vendor's warehouse. Deliveries require 10 days.
By maintaining plant-level data, you can set different planned delivery times for each plant, ensuring accurate scheduling and MRP calculations.
Vendor V1 has different payment terms requirements based on plant location:
- For Plant A in the domestic market, the payment term is Net 30 days.
- For Plant B in an international location, the payment term is Net 45 days due to international banking processes.
Plant-level data allows you to configure these different payment terms specifically for each plant.
Vendor V1 has established different technical integrations for different plants:
- For Plant A, the vendor has an EDI connection that enables automated order confirmations, creating Inbound Delivery documents (IBD).
- For Plant B, there is no EDI connection, so confirmations are handled manually.
Plant-level data enables you to configure the confirmation control settings differently for each plant.
Key Fields Available at Plant Level
S/4HANA allows you to maintain numerous fields at the plant level. Here are some of the most commonly used ones:
| Field | Description | Business Impact |
|---|---|---|
| Planned Delivery Time | Number of days required for delivery to this plant | Affects scheduling, MRP calculations, and delivery date determination |
| Payment Terms | Payment conditions specific to this plant | Determines payment scheduling for invoices from this plant |
| Incoterms | Delivery and freight terms for this plant | Defines shipping responsibilities and costs |
| Order Currency | Currency used for this plant's orders | Especially useful when plants are in different countries |
| Minimum Order Value | Minimum purchase amount for this plant | Prevents small orders that may be inefficient for certain locations |
| GR-Based Invoice Verification | Whether invoice verification requires goods receipt for this plant | Controls invoice processing workflow |
| Confirmation Control | How order confirmations are handled for this plant | Determines if and how confirmations are processed |
| MRP Controller | Person responsible for material planning at this plant | Routes planning-related communications |
Partner Functions at Plant Level
Beyond purchasing data fields, you can also define different partner functions at the plant level. This is particularly useful when different plants need to interact with different addresses or contacts within the same vendor organization.
A vendor has multiple facilities or ordering addresses:
- Orders for Plant A should use Ordering Address X, which is closer to this plant.
- Orders for Plant B should use Ordering Address Y, which serves that region better.
By defining partner functions at the plant level, the system automatically selects the correct ordering address based on which plant is creating the purchase order. This eliminates manual selection and reduces errors.
Technical Note: Data Priority
When plant-level data is maintained, the system prioritizes it over data maintained at the purchasing organization level. This means that if both levels have data defined, the plant-level data will take precedence when a transaction involves that specific plant.
Vendor Subrange (VSR)
Vendor Subrange (VSR) provides a different dimension of data maintenance by allowing you to group materials from the same vendor into categories and maintain specific data for each category. This approach is particularly useful when handling vendors who supply various types of products with different terms and conditions.
What is a Vendor Subrange?
A Vendor Subrange (VSR) is a logical grouping of materials from a single vendor that share common attributes, conditions, or business rules. It allows you to define and maintain data for categories of materials rather than for individual plants.
Think of it as asking: "How do the terms differ when we purchase paints versus chemicals from this vendor?"
The concept of Vendor Subrange originated in retail industry applications, but has been expanded for use in any industry where material categories from the same vendor need different handling.
Why Use Vendor Subrange?
There are several compelling reasons to implement Vendor Subrange in your S/4HANA system:
Material Category Differences
When a vendor supplies different categories of materials with different delivery times, pricing, or terms based on the material type rather than delivery location.
Reduced Maintenance Effort
Instead of maintaining data for hundreds of individual materials, you can maintain it once for an entire category, significantly reducing maintenance workload.
Different Partner Functions
When different material categories from the same vendor come from different warehouse locations or departments, requiring different partner functions.
Organized Purchase Orders
When you want to group similar materials together in purchase orders for better readability and efficiency in order processing.
Real-World Example Scenarios
Vendor V1 supplies both paints and chemicals to your company:
- For paints, delivery typically takes 10 days and they ship from their paint warehouse.
- For chemicals, delivery takes 15 days and they ship from a separate chemical warehouse with special handling requirements.
Instead of maintaining these differences at the plant level (which wouldn't work if all plants experience the same difference by material type) or maintaining individual info records for hundreds of materials, you can create two vendor subranges: one for paints and one for chemicals.
Vendor V1 has different payment term requirements based on the type of product:
- For chemicals, payment terms are Net 90 days due to industry standards.
- For paints, payment terms are Net 7 days due to faster cash flow requirements.
Vendor subranges allow you to maintain different payment terms based on material category regardless of which plant is ordering.
Vendor V1 offers different discount structures for different product categories:
- For paints, there's a 10% discount due to competitive market conditions.
- For chemicals, there's a 5% discount based on your volume commitments.
Using vendor subranges, you can define these discount conditions once for each category rather than configuring them for each individual material, significantly reducing maintenance effort.
Key Benefits of Vendor Subrange
| Benefit | Description | Business Impact |
|---|---|---|
| Reduced Maintenance | Maintain data once for an entire category instead of for each material | Lower administrative effort, fewer errors, more consistent data |
| Material-Specific Terms | Define different business rules based on material categories | More accurate reflection of vendor relationships by material type |
| Simplified Pricing | Apply pricing conditions at the subrange level | Easier maintenance of category-specific discounts and pricing |
| Purchase Order Organization | Group similar materials together in purchase orders | More logical organization of items for better vendor processing |
| Consistency Across Materials | Ensure uniform settings for all materials in a category | Standardized processes and reduced exceptions |
Vendor Subrange Sorting
One additional benefit of vendor subranges is the ability to define sorting criteria for purchase orders through "Sort Numbers". This allows you to control how materials appear in purchase order documents.
When creating a purchase order with mixed items from different categories, you might want them grouped logically:
- Without sorting: Paint, Chemical, Paint, Chemical, Paint (in the order they were added)
- With subrange sorting: Paint, Paint, Paint, Chemical, Chemical (grouped by category)
By assigning sort numbers to your subranges (e.g., Paints = Sort 01, Chemicals = Sort 02), the system will automatically organize the materials in the purchase order document, making it more structured and easier for the vendor to process.
Integration with Purchasing Info Records
Vendor Subranges can be linked to purchasing info records, enabling you to assign materials to specific subranges. This creates the connection between individual materials and their respective categories.
Technical Note: Data Priority
When vendor subrange data is maintained, the system prioritizes it over data maintained at the purchasing organization level. If both plant-level data and subrange data exist, the system typically prioritizes plant-level data first, then subrange data, and finally purchasing organization data.
Comparing Plant Level Data and Vendor Subrange
Understanding the differences between Plant Level Data and Vendor Subrange is crucial for determining which approach to use in specific business scenarios. Let's compare these two additional data maintenance levels across various dimensions.
| Aspect | Plant Level Data | Vendor Subrange (VSR) |
|---|---|---|
| Primary Focus | Location-specific differences | Material category-specific differences |
| Business Question | "How does this vendor work differently with Plant A vs. Plant B?" | "How do terms differ for paints vs. chemicals from this vendor?" |
| Key Identifier | Plant (e.g., P1, P2) | Subrange ID (e.g., PAINTS, CHEMICALS) |
| Activation Field | Plant Relevant checkbox | VSR Relevant checkbox |
| Best For | Different delivery times, payment terms for different plants | Different terms for different product categories |
| Applies To | All materials delivered to a specific plant | Specific category of materials regardless of plant |
| Number of Entries | One per plant (typically few) | One per material category (can be many) |
| Maintenance Effort | Lower (fewer plants than material categories) | Higher initially, but saves effort compared to individual info records |
| Pricing Impact | Limited direct impact on pricing | Can define conditions and discounts by category |
Decision Framework: When to Use Each Approach
- The same material has different delivery times depending on which plant is ordering
- Payment terms differ based on plant location (e.g., domestic vs. international)
- Different plants need to work with different partner functions for the same vendor
- Order currencies differ by plant location
- Only certain plants have EDI or confirmation capabilities with a vendor
- Minimum order values vary based on plant location or logistics considerations
- A vendor supplies distinct categories of materials with different terms
- You want to reduce maintenance by grouping similar materials
- You need to apply different discounts or pricing to different material categories
- You want to organize purchase orders by grouping similar items together
- Different categories of materials come from different vendor warehouses
- Payment terms vary based on product type rather than delivery location
Using Both Together
In some complex business scenarios, you might need to use both Plant Level Data and Vendor Subrange together to address different dimensions of variability in vendor relationships.
Vendor V1 supplies both paints and chemicals to your Plant A and Plant B:
- You use Plant Level Data to define the different currencies used for each plant (USD for Plant A, EUR for Plant B)
- You use Vendor Subrange to define the different delivery times (10 days for paints, 15 days for chemicals) and different discounts for each category
This combination gives you the flexibility to handle both location-specific and material-specific variations.
Data Priority in Combined Scenarios
When both Plant Level Data and Vendor Subrange are used, the system typically follows this priority sequence:
- Plant Level Data (highest priority)
- Vendor Subrange Data
- Purchasing Organization Data (lowest priority)
This means that plant-specific settings will override subrange settings, which in turn override purchasing organization settings.
Practical Considerations
When deciding between Plant Level Data and Vendor Subrange (or using both), consider these practical factors:
Data Volume
Consider how many plants versus how many material categories you have. If you have few plants but many material categories, Plant Level Data might be more efficient to maintain.
Business Priorities
Determine whether location-specific or material-specific variations are more critical for your business processes. Focus on the dimension that has the most impact.
Maintenance Resources
Consider who will maintain the data and how frequently it needs to be updated. Choose the approach that aligns with your maintenance capabilities.
System Performance
Be mindful that excessive use of additional data levels can impact system performance. Implement only what is necessary for your business requirements.
Implementation Steps
This section provides detailed, step-by-step instructions for implementing both Plant Level Data and Vendor Subrange in your S/4HANA system.
Setting Up Plant Level Data
Enable Plant Relevance
First, you need to mark the vendor as plant-relevant in the general data:
- Go to transaction code BP or use the Business Partner app
- Enter your vendor (Business Partner) number
- Go to the Vendor General Data section
- Select the "Plant Relevant" checkbox
- Save your changes
Access Vendor Subranges Tab
Navigate to the area where you can create plant-specific data:
- In the same BP transaction, go to the Purchasing Data section
- Select the "Vendor Subranges" tab (both plant data and subrange data are maintained here)
- You should now see a "Create" button available
Note that both Plant Level Data and Vendor Subrange are maintained in the same area of the system, under the "Vendor Subranges" tab.
Create Plant-Level Entry
Create a new entry for the specific plant:
- Click the "Create" button
- Enter the plant ID (e.g., SG01)
- The system will display a dialog asking whether you want to maintain purchasing data or partner functions
- Select "Purchasing Data" to maintain plant-specific purchasing information
Maintain Plant-Specific Data
Enter the plant-specific details for this vendor:
- Define plant-specific fields like Planned Delivery Time (e.g., 15 days)
- Set plant-specific payment terms if needed
- Define the order currency for this plant
- Set minimum order value if applicable
- Configure other plant-specific settings as needed
Only maintain the fields that actually differ for this plant. For other fields, the system will use the values from the standard hierarchy.
Save the Configuration
Save your plant-specific data:
- Review all the plant-specific settings
- Click "Save" to store the plant-level configuration
- The system will now use these settings when this plant orders from this vendor
Setting Up Partner Functions at Plant Level
Access Vendor Subranges Tab
Navigate to the Vendor Subranges area as before
Create Plant-Level Entry
Create a new entry for the specific plant:
- Click the "Create" button
- Enter the plant ID (e.g., SG01)
- This time, select "Partner Function" to maintain plant-specific partner functions
Define Partner Functions
Specify which partner functions should be used for this plant:
- Define the appropriate partner functions (e.g., Ordering Address)
- Select the specific partner (e.g., Ordering Address X)
- Configure additional partner functions if needed
Save the Configuration
Save your plant-specific partner functions:
- Review all the partner function assignments
- Click "Save" to store the configuration
- The system will now use these partner functions when this plant creates purchase orders for this vendor
Setting Up Vendor Subrange
Enable VSR Relevance
First, mark the vendor as VSR-relevant in the general data:
- Go to transaction code BP or use the Business Partner app
- Enter your vendor (Business Partner) number
- Go to the Vendor General Data section
- Select the "VSR Relevant" checkbox
- Save your changes
Access Vendor Subranges Tab
Navigate to the vendor subranges area:
- In the same BP transaction, go to the Purchasing Data section
- Select the "Vendor Subranges" tab
- You should now see a "Create" button available
Create Vendor Subrange
Create a new subrange for a category of materials:
- Click the "Create" button
- Enter a subrange ID (e.g., ZSR1 for "Paints")
- Choose whether you want to maintain purchasing data or partner functions (or both)
- Select "Purchasing Data" to maintain subrange-specific purchasing information
Choose meaningful subrange IDs that clearly indicate the material category (e.g., PAINTS, CHEM) to make maintenance easier.
Maintain Subrange-Specific Data
Enter the data specific to this material category:
- Define subrange-specific fields like Planned Delivery Time (e.g., 10 days for paints)
- Set subrange-specific payment terms if needed
- Configure other subrange-specific settings as needed
Only maintain the fields that actually differ for this material category. For other fields, the system will use the values from the standard hierarchy.
Save the Configuration
Save your subrange-specific data:
- Review all the subrange-specific settings
- Click "Save" to store the subrange configuration
Assigning Vendor Subrange to Info Records
After creating vendor subranges, you need to assign materials to these subranges through info records.
Access Info Record Maintenance
Go to the purchasing info record:
- Use transaction ME12 to change an existing info record
- Enter the info record number
Assign Subrange to Info Record
Link the info record to the appropriate vendor subrange:
- In the info record details, locate the "Supplier Subrange" field
- Enter the subrange ID that you created earlier (e.g., ZSR1)
- Optionally, enter a "Sort Number" if you want to control the sorting of items in purchase orders
Save the Info Record
Save your changes to the info record:
- Review the subrange assignment
- Click "Save" to store the configuration
- The system will now associate this material with the specified subrange and apply the relevant settings
Mass Maintenance Considerations
If you need to assign many materials to vendor subranges, consider using mass maintenance tools or creating a custom program to update multiple info records. Manually updating each info record can be time-consuming for large material portfolios.
Best Practices
Implementing Plant Level Data and Vendor Subrange effectively requires careful planning and adherence to best practices. Here are recommendations to maximize the value of these features in your S/4HANA environment.
General Best Practices
Implement Selectively
Use plant level data and vendor subranges only when the standard data maintenance levels aren't sufficient for your needs. Unnecessary complexity can lead to maintenance challenges.
Document Your Configuration
Maintain clear documentation of which vendors use plant level data or subranges and why. This ensures consistent application and helps with knowledge transfer.
Train Users Properly
Ensure that materials management and procurement teams understand the concepts and know when to apply plant level data versus vendor subranges.
Periodic Review
Regularly review your plant level and subrange configurations to ensure they still align with your business processes and vendor relationships.
Plant Level Data Best Practices
- Clear Plant Differences: Only implement when there are clear, consistent differences in how a vendor works with different plants
- Multiple Plants: Most valuable when you have multiple plants ordering from the same vendor
- Geographical Considerations: Particularly useful when plants are in different regions or countries
Implementation Tips for Plant Level Data
- Consistent Application: Apply plant relevance consistently for all vendors where plant-specific differences exist
- Start with Key Fields: Focus on configuring the most impactful fields like delivery time, payment terms, and partner functions
- Validate with Business: Confirm plant-specific settings with plant managers and local procurement teams
- Consider MRP Impact: Remember that plant-specific delivery times will affect MRP planning
- Document Exceptions: Clearly document why certain plants have different settings to ensure business continuity
Vendor Subrange Best Practices
- Material Category Differences: Implement when a vendor has distinct categories of materials with different terms or conditions
- High Material Volume: Most valuable when a vendor supplies many materials that can be logically grouped
- Maintenance Efficiency: Use when maintaining individual info records would be too cumbersome
- Category-Based Pricing: Particularly useful when discount structures vary by material category
Implementation Tips for Vendor Subrange
- Logical Grouping: Create subranges that align with natural material categories (e.g., by material type, product line, or commodity)
- Meaningful IDs: Use descriptive subrange IDs that clearly indicate the material category (e.g., PAINTS, CHEM)
- Consistent Assignment: Ensure all relevant info records are assigned to the appropriate subrange
- Use Sort Numbers: Take advantage of sort numbers to organize purchase orders logically
- Consider Pricing Integration: Align subranges with pricing strategy if implementing category-specific discounts
Combining Plant Level Data and Vendor Subranges
Strategic Implementation
When using both features together, be strategic about which data to maintain at each level. Avoid unnecessary duplication or complexity that could lead to maintenance challenges.
- Plant Level for Location-Specific Data: Use plant level data for truly plant-specific information like currencies, incoterms, and plant-specific partner functions
- Subranges for Material Category Data: Use subranges for material category-specific information like delivery times, quality parameters, and category-specific discounts
- Clear Data Ownership: Establish clear guidelines for which data elements are maintained at which level to avoid conflicts
- Test Thoroughly: When implementing both features, test extensively to ensure the system correctly prioritizes and applies the data
System Performance Considerations
While plant level data and vendor subranges provide valuable flexibility, they can impact system performance if not implemented carefully:
Avoid Excessive Configuration
Creating too many plant-specific entries or subranges can increase data volume and potentially impact performance. Implement only where there is clear business value.
Regular Data Cleanup
Periodically review and remove unused or outdated plant level data and subranges to maintain optimal system performance.
Monitor Data Growth
Keep track of how many vendors use plant level data and subranges, and monitor the growth of this data over time to ensure it remains manageable.
Consider Archiving Strategy
Include plant level data and subrange configurations in your archiving strategy for vendor master data to manage data volume over time.
Change Management
Implementing additional data levels requires effective change management to ensure successful adoption:
Change Management Recommendations
- Stakeholder Involvement: Involve procurement, plant management, and finance teams in the design and implementation process
- Clear Communication: Clearly communicate the purpose and benefits of plant level data and vendor subranges to all stakeholders
- Comprehensive Training: Provide training on when and how to use these features, including maintenance responsibilities
- Phased Implementation: Consider a phased approach, starting with key vendors or critical material categories
- Feedback Mechanism: Establish a process for collecting and addressing user feedback during and after implementation