Maintaining accurate customer master data in SAP is a straightforward yet crucial process. The customer master record in SAP serves as the foundation for various processes in sales, logistics, and accounting.
These processes include sales order processing, available-to-promise (ATP) checks, pricing, outbound delivery, invoicing, and accounts receivable.
It is safe to say that the customer master is a fundamental component of the order-to-cash, logistics, and finance modules. In this tutorial, we will explore this topic step by step. We will also discuss the key information required when creating a customer master in SAP. Lastly, we will cover the important transaction codes and tables associated with the customer master.
SAP Customer Master plays an important role in various downstream processes
Creating and maintaining SAP customer master in a step-by-step manner
The process for creating a customer master in SAP involves several steps. First, the customer’s details must be entered into the SAP system using the transaction code ‘XD01’.
The first step is to select an account group under which you need to create the customer. An account group plays a crucial role in managing the fields within the customer master, providing a logical organization of customer master records. In standard SAP, for instance, Account Group 0001 represents all the sold-to parties, ensuring effective control and organization of customer data.
By assigning specific account groups, businesses can maintain a structured system that enables accurate data management and enhances operational efficiency.
This includes entering the customer’s name, address, payment terms, and any other relevant information. Once the customer’s information has been entered, the customer record can be saved.
In SAP, depending on the number range and other configurations, you have the option to use an external customer number when creating a record (by entering the customer number in XD01) or, more commonly, SAP will generate a customer number for you using the running number sequence.
Next, the customer’s credit limit and payment terms should be set using the ‘FD32’ transaction code. This code also allows for setting up automatic payment terms and customer-specific invoicing. After defining the customer’s credit limit, the customer master should be completed in the ‘FD04’ transaction code.
Finally, the customer master must be linked to the appropriate financial accounts in the ‘FS00’ transaction code. This allows for the assignment of relevant accounts for the customer’s sales and purchases.
Editing Customer Master Record
Once the customer master is complete, associated SAP transactions can be used to manage customer data. The transaction code ‘XD02’ allows users to update customer information, while the ‘FD02’ transaction code can be used to display customer account information.
Furthermore, ‘FD03’ can be used to view customer-specific invoicing, while ‘FD04’ can be used to view customer credit limit information.
Additionally, ‘XD03’ and ‘FD05’ can be used to delete customer and account information, respectively. Ultimately, these transactions provide users with an effective way to manage customer master data in SAP.
Changing Account group of a customer master record
It is possible to change the account group of a customer record by going to XD07 transaction. However, kindly note that when you change the account group, the new account group number range must allow the existing customer master number.
Attributes of the SAP Customer Master in the SD module
Following are the key fields in the customer master used in the sales and distribution module. These fields play a crucial role in managing customer data and facilitating smooth sales processes.
Customer contact details
Partner functions such as bill to, ship to, payer
Credit limits, payment terms, and delivery preference
Using the above fields businesses can effectively streamline their sales and distribution operations for better customer satisfaction and increased sales efficiency.
Attributes of the SAP Customer Master in the MM module
Following are the key fields which impact the material movement during Outbound delivery process within SAP.
Indicator to whether orders need to be combined while delivering.
Key fields impacting material movement during Outbound delivery process in SAP include delivery priority, delivering plant, shipping conditions, and order combination
Important Tables associated with Customer Master in SAP
In addition to the steps outlined above, SAP provides several tables associated with customer master data. The table ‘KNA1’ contains the customer master records, while the ‘KNB1’ table contains company code information.
The ‘KNVV’ table stores information regarding customer groups, payment terms, and sales areas, and the ‘KNBK’ table stores customer bank details. These tables can be accessed using the transaction code ‘SE16’ and allow users to view, edit, and delete customer master records.
Importance of Maintaining Customer Master in SAP
Maintaining accurate customer master data in SAP is essential for running a successful business. Accurate customer master data helps to improve the customer experience by providing a single source of customer information that can be accessed whenever needed. This data is also used for tracking customer orders, invoices, payment information, and other important financial transactions.
Moreover, it enables companies to better analyze customer behavior, optimize their marketing efforts, and improve their financial forecasting and planning. In short, accurate customer master data is a critical component for any business that relies on SAP for its operations.
Common challenges in managing customer master data in SAP include the need to ensure data accuracy and completeness, as well as timely updates to customer information. Additionally, customer data needs to be kept secure and compliant with regulations. Furthermore, customer master data must be made available to different users within the organization while still ensuring restricted access to sensitive details. Finally, companies need to ensure that customer master data is properly integrated into other systems, such as ERP and CRM, for effective processing and reporting.
Blocking customer master record
There are instances when you may need to block a customer record in order to disable transactions. But why would you do that? Let’s consider an example.
Say you have a customer named Slow Payer Incorporated, based in New Jersey. Although you have received substantial orders from them, their accounting department has been slow in clearing vendor payments. As a result, your company wants to block any sales to them.
Now, let’s look at another scenario. You have a newly created customer called Hans International. Your finance team is still in the process of establishing their credit limit, payment terms, and tax ID validation. Therefore, you want to temporarily block this customer until all the necessary details are finalized. Furthermore, there may be situations where you want to accept orders but block the shipment of goods. In such cases, you can set up delivery blocks within the customer record.
By implementing these blocks, you can effectively control and manage customer transactions based on specific requirements and circumstances.
Importance of security roles and authorizations
In SAP, customer data is protected through various security measures. Every user with access to the system must be authenticated using a unique username and password. This ensures that only authorized personnel can access customer data.
Additionally, sensitive data is encrypted and stored securely in the system. Access to the customer master record is also restricted to only those personnel who require it, and access levels can be changed or revoked whenever necessary.
Furthermore, SAP has built-in auditing capabilities which help to track user activity and the changes made to customer records. This helps to ensure that customer data is always secure and accurate.
Setting up Customer Master ALE Distribution for External Systems
Many times, you may want to transfer customer master from SAP to third party applications. This can be done by defining a logical system in BD54, followed by an ALE Distribution model in BD64. This is an advanced topic which we will cover in a separate blog post.
Summary of the article
SAP provides an efficient way to manage customer master data. The SAP customer master record contains key information about the customer, such as name, address, contact details, credit information, payment terms, tax details, and more. This data is securely stored and can be accessed by authorized users. Read Hubspot blog on why master data is so important.
The customer master record can also be blocked in SAP to prevent any transactions from taking place until the necessary information is verified or the customer’s payment is cleared. This helps to ensure data accuracy and completeness, as well as to protect customer data while still making it available to authorized users.
Additionally, SAP customer master data can be easily integrated into other systems, such as ERP and CRM, for improved processing and reporting. This allows organizations to efficiently anlyze customer behavior, optimize their marketing efforts, and improve their financial forecasting and planning.
Shilpa is an accomplished leader with 17 years of experience in various facets of IT strategy, program management, continuous improvement, business transformation, and service delivery. Her experience span over industry verticals like Manufacturing, HealthCare, CPG and Media companies. She is fond of organizing events and is also associated with Habitat for Humanity.
We started careers in software consulting after passing out from top MBA colleges in early 2000s. We were fortunate to get trained at Enterprise Solutions Academy at Infosys, Hyderabad by some highly experienced professionals.