Manage Business Relationships Effortlessly
with a Partner Determination Procedure
- by Rajen Iyer, Cofounder and CTO, Krypt, Inc.
- October 1, 2006
Set up partner functions in your Sales and Distribution module so that the system automatically performs the partner determination process in both the master data and the sales document.
In R/3 and mySAP ERP, you classify business partners by partner type. A few examples of partner type are AP (contact person), KU (customer), LI (vendor), and PE (personnel).
While partner types allow you to distinguish among different business partners, partner functions represent the roles played by business partners within a business transaction. For example, one customer might order a part, another receive it, and a third person pay for it.
Partner determination is a set of rules that governs how the system works with business partners during transaction processing. For example, you can configure a partner determination process that enables the system to automatically assign partner type and partner function for a given business partner.
With any Sales and Distribution (SD) implementation,
you must set up the partner determination procedure
in the sales document. You use this procedure
to determine which partner functions and partner
types must appear on sales documents. For instance,
when you register a sales order, you can capture
the customer who orders the part (the sold-to
party), the customer who receives the part (the
ship-to party), the customer who pays for the
part (payer), and a vendor who takes care of
By default, the system provides you with a
standard set of configuration for partner determination,
but you may need to change this configuration
as a result of new business requirements. For
example, to improve customer care, you could
assign a sales representative to your key customers.
The sales representative would work closely with
these customers and make sure the relationship
based on the business transaction runs smoothly.
In this example, you associate your employee
(the sales representative) with your customer
(an employee-customer relationship), so you must
treat the sales representative as a business
partner. If the business requirements change
and you need to add additional sales representatives,
you can configure your system so that you can
automatically define partner functions in both
the master data and the sales document.
I will show you how to change the existing
setup to add a new business partner that meets
these requirements. The available information
about this process is not well understood, so
I will provide some quick definitions and the
background of the partner concept. Then I will
explain the step-by-step process to create the
business partner determination procedure.
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