With S/4HANA, the SAP business partner gained considerably in importance. The reason for this is the now universally known mandatory requirement: no S/4HANA without a business partner. Above all, the redundant data management that resulted from the old concept of accounts receivable and accounts payable was to be eradicated. Anyone who takes a closer look quickly realizes that this goal was not really achieved. Separate data records for vendors and customers continue to be used technically in S/4HANA and are used in the logistics processes instead of the business partner. However, the business partner offers the great advantage of being able to hold several addresses at the same time and also to limit them in time.
WITH SEVERAL ADDRESSES NOT YET THOUGHT THROUGH TO THE END
Especially in sales and purchasing processes, where deviating ship-to or purchase order addresses often come into play, the expectation was great: finally, no more creating separate master records for these types of addresses. Especially not if it is not a separate legal entity.
But the advantages described are practically useless if the "customer" or "vendor" object used in logistics processes is still required in the system. This is because it still applies in S/4HANA that only one address can be stored per customer and vendor. If a different address comes into play that belongs to the same legal entity, a separate business partner with a suitable role must be created. Unfortunately, data storage is not reduced. Quite a few future S/4HANA users are disillusioned when they hear this.
Business Partner - Business Function inaktiv
A business partner represents a legal entity. This entity can be represented by multiple addresses. Our example customer specifies to consider one separate address each for goods receipt and invoice receipt. Thus, a total of three addresses are known for this customer. Since customers can still only hold one address, a separate business partner must be created for each address. These business partners can each be given a unique role through adapted customizing in order to map their share in the business relationship. Further used partner functions "sold-to party" (AG), "ship-to party" (WE), "bill-to party" (RE) and "payer" (RG) are maintained in business partner A accordingly. Customer B is stored for GR, customer C for RE. During document creation, the addresses are taken from the respective customer masters.
BUSINESS PARTNER ADDRESSES IN SALES DOCUMENTS - WHAT THE FUNCTIONALITY BRINGS AND WHO CAN ACTUALLY USE IT
As of S/4 Release 2021, the use of business partner addresses in sales documents can now be optionally activated. This step brings SAP a little closer to its own statement on reduced data redundancy.
With the activated enhancement and a little customizing, it is then possible to take the correctly maintained addresses from the associated business partner when creating SD documents. Thus, for each different address, only one business partner and one customer need to exist. New addresses are correctly classified and stored in the business partner. Only the main address ends up in the customer. The system indicates additional addresses during document creation. The user can then select these as desired for the respective partner function.
Business Partner - Business Function active
A business partner represents a legal entity. This entity can be represented by multiple addresses. Our example customer specifies to consider one separate address each for goods receipt and invoice receipt. Thus, a total of three addresses are known for this customer. The business partner is maintained with all three addresses, each of which is assigned its benefit in the process (main address, shipping address, billing address). During document creation, the addresses are no longer taken from the customer master, but from the business partner. This ensures transparent mapping of legal entities and prevents redundant data creation.
But be careful: The associated business functions, which ensure that business partner addresses are queried when sales documents are created, are irreversible. Activation, additional customizing and a corresponding function and integration test should therefore only take place on a sandbox.
But is it already worthwhile to build on this functionality for a large number of customers? What are the pitfalls and hurdles to even get to this level? The change is not possible at the push of a button. In addition to activating the business functions and setting additional customizing, it is of course essential to prepare the master data. The distributed addresses must be assigned to a business partner. This requires a not to be underestimated amount of manual work from the departments responsible for master data. Whether you are just switching to S/4HANA or are already working with it has almost no influence on this work. However, it is worth considering carefully whether this functionality should be activated as a preliminary project as part of the changeover to Business Partner.
Furthermore, it should be noted that the functionality still comes with a list of limitations. Particularly when integrating additional systems that require the Business Partner, caution is advised and a detailed feasibility check is required.
![[Translate to English:] Business Partner Business Function](/fileadmin/trendblog/Geschaeftspartner_und_der_Mythos_der_vereinfachten_Datenhaltung/Geschaeftspartner_Screen_1.svg)
![[Translate to English:] Business Partner Business Function](/fileadmin/trendblog/Geschaeftspartner_und_der_Mythos_der_vereinfachten_Datenhaltung/Geschaeftspartner_Screen_2.svg)
PURCHASING REMAINS OUTSIDE FOR THE TIME BEING
Last but not least, the process approach should not be forgotten. Because this functionality does not yet exist for purchasing. So different approaches have to be pursued at the same time. A clear line in master data maintenance is therefore not possible. The master data team has to work with two different approaches at the same time, which has a negative impact on the user experience and reduces acceptance of the business partner concept.
For the next releases, SAP plans to introduce the functionality for purchasing as well. However, it is still unclear when this will actually happen. However, it is highly recommended that future greenfield projects take a closer look at these fundamentally profitable features as soon as the functionality is also available for purchasing. The business partner concept with reduced data redundancy in particular can promote acceptance of the new system.
WHERE THE JOURNEY GOES
In summary, it can therefore be said that the development of the functionalities is taking a good path. Due to the previously mentioned points, companies that are already using S/4HANA in sales and purchasing or want to introduce it by 2023 are better served by waiting or considering this train to have sailed. Preparatory activities would be possible to switch to the new data model in address determination. However, the manual effort must be conscious and the project must be clearly defined within the company. Without the support of the business departments, this project will not lead to the desired success. Also, past transaction data cannot simply be made forgotten. The various approaches to master data maintenance cause additional strain in day-to-day business, since master data must be stringently maintained in a painstaking effort.
When and whether the use of optional functionality is worthwhile for a company is a strategic decision. Since various factors such as a company's own processes, progress in the S/4HANA transformation, and others must be taken into account in this question, an experienced S/4HANA partner should be consulted to make the decision. CONSILIO supports you in finding the right strategy and the right time for activating the business partner extension.
The business partner offers the great advantage of being able to hold several addresses at the same time and also to limit them in time. However, this is not possible at the push of a button, because in addition to activating the corresponding business functions, it is essential to prepare the master data. When and whether the use of the optional functionality is worthwhile for a company is a strategic decision that should be made with an experienced SAP partner like CONSILIO.
