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Setting up Business Partner S/4 HANA

There are redundant object models in the traditional ERP system. Here the vendor master and customer

Master is used. The (mandatory) target approach in S/4HANA is the Business Partner approach.

Business Partner is now capable of centrally managing master data for business partners, customers, and vendors. With current development, BP is the single point of entry to create, edit, and display master data for business partners, customers, and vendors


Customer/Vendor Object Model Limitations

  • Only one single address
  • No relation between a vendor and a customer for the same real world entity (no role concept)
  • No time-dependency


Business Partner – SAP Strategic Object Model

  • General data are shared across different roles
  • One business partner could perform multiple roles, e.g., customer and vendor (supplier)
  • One business partner could have multiple addresses
  • Time-dependency object attributes and relationships
  • Provide harmonized architecture
  • Customer/Vendor Integration (CVI) component ensure the synchronization between the Business Partner object and the customer/vendor objects


Business partner has been mandatory with S4 Hana Enterprise Management version i.e 1511 and 1610 & old transactions related to Vendor and customers have become obsolete.

It´s recommended but not mandatory that BuPa ID and Customer-ID / Vendor ID are the same.

The Business Partner Approach is not mandatory for the SAP Simple Finance 1503

Check and activate Business Functions


CA_BP_SOA Switch ‘VENDOR_SFWS_SC1’ and switch ‘VENDOR_SFWS_SC2’ have to be active for the vendor contact person’s data to be synchronized with BP contact person’s data

The appropriate specific transaction like XD01,XD02, XD03 or VD01, VD02, VD03 / XK01, XK02, XK03 or MK01, MK02, MK03 etc. are not available in SAP S/4HANA Enterprise management Version i.e. 1511 and 1610

Currently mass maintenance for customers and vendors via transaction MASS is not available.

Before you begin the BP conversion from an SAP ERP system to an SAP S/4 HANA system, you have to answer the questions Whether the Business Partner ID and Customer-ID /Vendor ID should be the same in the S/4 HANA System?

Business Partner Master Data Setup Proces

  1. Setup BP General Data

Select General Business Partner Role and Grouping, here this grouping is linked with customer/ vendor Number range and this Grouping is key in linking the Vendor/Customer & BP groups as well as number ranges which is explained below in detail.

Table BUT000 will be updated once General BP role is completed.

2. Setup FI Vendor

BP Role FLVN00 FI Vendor extension enables Invoice to be posted directly in FI.

Here vendor master table LFA1 and LFB1 will be updated.

FI document can be posted but cannot create PO as purchasing data is not yet extended so for extending purchasing data use ROLE  FLVN01

Table LFM1 will be updated once the BP Role is extended to Supplier BP Role

Once BP is extended to Purchase Organization using BP Role FLVN01 the vendor can be used PO can be created.


Setting up Customer


Table KNA1 will be updated once BP Role is extended to FI Customer and Finance can start posting directly in FI for example FB70 etc.

Extend Customer to Sales Area

BP Role FLCU01 is extended to sales area.

Table KNVV updated with Sales view details and henceforth Customer can be used in sales area.

Extend Customer to Credit Segment

Table UKMBP_CMS_SGM updated

Note- S4 Hana credit Management setting should be enabled to check the credit limits for customers



Business Partner Customizing

Activate the PPO Request for the synchronization object Business Partner

Cross-Application Components–> Master Data Synchronization –> Synchronization Control–> Synchronization

Active Synchronization between Customer/Vendor and BP is active


Define BP Roles

Assign BP Role to BP Role Category

Cross-Application Components–> SAP Business Partner–>Business Partner–> Basic Settings –> Business Partner Roles–>  Define BP Roles

This setting is already available in standard delivered system for standard roles.

Account Group /Number Range Mapping

I am explaining below with an example of requirement for setting up One Time Vendor and One Time Customer Account and as a summary we need to setup Vendor/Customer Account group & assign number ranges to respective Vendor/Customer account group as it was required in classic ERP environment.

Additionally BP grouping is mapped with Vendor/Customer account group


Define Account Groups Vendor

Financial Accounting (New)–> Accounts Receivable and Accounts Payable–> Vendor Accounts–> Master Data–> Preparations for Creating Vendor Master Data

Assign Number Ranges to Vendor Account Groups

Similarly for Customers we need to define Account Group and assign number range to Customer account groups.


Define Number Assignment for Direction BP to Vendor/Customer

Cross-Application Components–> Master Data Synchronization–>Customer/Vendor Integration –> Business Partner Settings –> Settings for Vendor Integration –> Field Assignment for Vendor Integration–> Assign Keys

Define Number Assignment for Direction BP to Vendor

Define BP Number Range and assigning to BP Grouping

Cross-Application Components–> SAP Business Partner–> Business Partner–> Basic Settings –>Number Ranges and Groupings

Define Number Ranges-BP

Define Groupings and Assign Number Ranges


Create Number Ranges for Vendor/Customer

Financial Accounting (New)–> Accounts Receivable and Accounts Payable–> Vendor Accounts–> Master Data –> Preparations for Creating Vendor Master Data

Create Number Ranges for Vendor Accounts


Similarly create Number Ranges for Customer Accounts.


This will enable to start work with new Business Partner in S4 Hana Enterprise Management Environment.



Ajeet Agarwal









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  1. Djordje Stojanovic

    Thanks for the above.

    One question: Is it possible in BP to extend the customer or vendor to another company with reference? We have the FI vendor and customer role and what to extend the BP now to a new company code with reference data from an existing company code. How can I do that in BP?

    With FK02 or FD03 that was possible.



  2. Farhan Ali

    Dear Gurus,

    While creating vendor in the t-code BP (Create in BP Role field – 000000 Business partner (Gen) option is not appearing into my system). Please let me know am i missing something or i need to configure anything more in order to get this?

    Your valuable inputs will be appreciated.

    many thanks in advance.

  3. Chetan Mahapatra

    Super document. Just one query though. How is the sensitive field configuration impacted as the transactions FK08 is blocked based on what is written in the 1610 simplification list. Need to understand if I want to make certain fields as sensitive should I do it in the vendor account group or in the BP role field mapping. But the concern is that certain fields as appearing in the vendor account group may not be available in the BP field mappings. Moreover, if FK08 is missing and I define some fields as sensitive in account group, how are changes approved or rejected?

  4. Chirdeep Rastogi

    Hi Ajeet

    What remediation steps we can carry out if we miss to do these suggested migration steps and complete the migration from FCC system to S/4 HANA 1610?


  5. sachin arora

    Hi Ajeet, Very nice document. I recently have been put in a HANA project. Iam SD consultant. My questions.


    1) My understanding is that before customers and vendors are moved from ECC to HANA box, the above config settings for BP  needs to be in place in HANA box. And when customers /vendors are moved from ECC 6 to HANA, a BP for each customer and vendor is created in HANA system. This process is called Integration .   Is my understanding correct ?

    2) How are customers/vendors moved from ECC to HANA System ?

    3) Simplifi cation list is bit difficult to understand. When else I can check for detailed steps in sequence  to be done for customer and vendors integration  if I stuck up somewhere ?


    4) What about Partner functions. How they are moved from ECC to HANA. We can have Z partner functions attached to a customer or vendor in ECC




  6. Sachin Arora

    Hi AJeet


    your article seems to  be for the case where there is Greenfield HANA implementation and all config explained in your article seems to be done in HANA system.

    can you pls advice if we have existing ECC system and we need to upgrade it to HANA. In that case we will already have number ranges and account groups defined for customers in ECC. So do we need to do all BP related config in ECC only ?

    secondly how existing customers in ECC 6 be converted into BP and at what stage ?






    1. Kavita S.

      Hello Sachin,

      In that case you just dont do the action mentioned in the last screenshot of the blog as in your case , the number ranges  are set up for the customers.

      BUT you need to do all the configuration related to BP. (you use BUC2 and BUCF  for he number .ranges for BP)

      IF you want the BP to be created with the same number as the Customer click on the SAME indicator in the path below as mentioned in the post

               Define Number Assignment for Direction BP to Vendor/Customer

               Cross-Application Components–> Master Data Synchronization–>Customer/Vendor Integration          –> Business Partner Settings –> Settings for Vendor Integration –> Field Assignment for                   Vendor Integration–> Assign Keys

                Define Number Assignment for Direction BP to Vendor


      You can use transaction FLBPC1/ FLBPD1 to create BP from Vendor/ Customer.

      But for mass creation you could use the MDS_LOAD_COCKPIT to create BP from existing vendor/customer.

      Hope this helps.



  7. Ramesh M

    Hi Ajeet,


    How to enhance the BP with vendor master custom fields for LFM1 and LFM2 in Hana 1610

    We have new requirement to enhance BP transaction with vendor master custom fields for LFM1 and LFM2. Please let us know if any customer exit or BADI available for screen enhancement to update those custom fields using CREMAS IDOC.


    Ramesh M


  8. Arslan Aslam Khan

    Hi dear,


    My first post ever here.I  am working with the The new S/4 hana Finance (1610) .

    I have to exercise an end2nd order to cash proces:

    I need to create a bp and assign different roles to it. May I ask why SAP created different roles like customer (new) , customer (fi) , customer , sold-to party , and so on . What is the difference between sold-to party?

    As I do not have authority to change the settings or do any configuration, there is customer ID created in background while assigning the role ‘Sold-to party’ to my newly created bp.

    The customer ID differs from my bp number. Please guide me how I can search for the customer ID knowing my bp number. I need the customer ID, to create a sales order in order to proceed further.





    1. Ajeet Kumar Agarwal Post author

      Hi Jyoti

      You can add customer Tax  details in Identification tab of BP which will enable you to enter tax details with tax category and tax number and once you save this detail in BP the same you can see in KNA1 table , you can check whether these tax categories exists in table V_TFKTAXNUMTYPE  & V_TFKTAXNUMTYPEC  & also check field BP status that these tax number fields are optional/mandatory not hidden.




  9. m kong


    Hello Ajeet,


    With this Business Partner approach, how is the vendor master/customer master setup for intercompany stock transport order process, so that the STR is generated with vendor (i.e. supplying plant) info?

    Should the supplying plant be maintained in Business Partner (FLVN01 Vendor) > Purchasing > Additional Purchasing Data?

    Thank you,


  10. Jaymin Thakkar

    Hi Ajeet,


    I have one question.

    In our project we have maintained external number range for both BP and Vendor.

    So for example let’s say I have BP123 business partner and VN123 Vendor then how can I find the relation using one of the number?

    Means I have VN123 Vendor with me and I want to know which BP is associated with this Vendor then from which Table I can find the relation?

  11. Ajeet Kumar Agarwal Post author


    There was a missing functionality of creating customer/vendors with reference which is now available with 1610 FPS02 release . The process for creating customer/vendor with reference is explained below.

    Once  you select a BP role which belongs to a “Customer” or “vendor” type BP role category in the “Create in BP role” field, the “with Ref.” button will show up behind the “Group” button at the top left corner of the screen.


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