What is vendor account in SAP FI - Financial Accounting?

SAP Term: vendor account

• Component: FI

• Component Name: Financial Accounting

• Description: A structure that records value movements in a company code that affect receivables or payables with regard to a vendor. A vendor account contains transaction figures where value movements are recorded as periodic totals in the accounts payable ledger for reporting purposes. A vendor account also contains information required by a company code to map the actual value of the business transactions conducted with a vendor. Due to the assignment of a reconciliation account, payables to vendors are recorded simultaneously in the general ledger at the level of a G/L account.

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• Key Concepts: 
  A vendor account is a type of financial account in SAP's Financial Accounting (FI) component. It is used to record the transactions between a company and its vendors, such as payments for goods or services. The vendor account is also used to track the amount of money owed to the vendor. 
  
  How to use it: 
  In SAP, a vendor account is created for each vendor that a company does business with. The vendor account is used to record all transactions between the company and the vendor, such as payments for goods or services. The vendor account also tracks the amount of money owed to the vendor. 
  
  Tips & Tricks: 
  When creating a vendor account in SAP, it is important to ensure that all relevant information about the vendor is included in the account. This includes contact information, payment terms, and any other relevant information. Additionally, it is important to keep the vendor account up-to-date with any changes in the relationship between the company and the vendor. 
  
  Related Information: 
  The vendor account is closely related to other financial accounts in SAP's FI component, such as customer accounts and general ledger accounts. Additionally, it is important to understand how SAP's FI component interacts with other components, such as Materials Management (MM) and Sales & Distribution (SD).