Employee Vendor Account

[Former Member]

Hi All,

I am into the Re Engineering of the existing implementation project. In the current project, the client has Employees as vendor accounts. But now in the new implementation, they dont want this way. The Finance department does not want employees to have vendor account.

Is there any way other than vendor account, to maintain employees?

Thanks & Regards,

Imran

[Former Member · Accepted solution]

Hi Priya,

Please let me know the reason why the employees are created as vendor accounts.

Is it for the purposes of paying advances to employees??

Regards,

Rajeev

[Former Member · Accepted solution]

Hi Rajeev,

Thanks for the response.

Honestly, I am not sure about the whole process of integrating HR & Finance modules in SAP. So I am not able to provide the answer for your question.

So I would be thankful to you if you could guide me with this.

Regards,

Priya

[Former Member · Accepted solution]

Hi Priya,

Usually the employees are created as vendor master for the purpose of tracking the different type of advances given to employees. These advances are tracked through special GL indicators.

Vendor masters for employees are not created for HR-FI integration any way.

I would suggest you to understand their requirement in terms of employee wise advance tracking and proceed.

If they do not have any requirement for tracking the advance emplyoee wise, there is no point in maintaining the employees as vendor masters.

Please provide the exact requirement as to why they require the employee accounts, so as to help you out further on this issue

Regards,

Rajeev

[Former Member · Accepted solution]

Hi Rajeev,

The employees will get Advances sometimes in this company.

So I think this is the reason why the earlier implemenatation team has created employee vendors in this project.

Thanks a lot for your help.

Regards

Priya.

[Former Member · Accepted solution]

Hi Priya,

In that case, maintaining employees as vendor accounts would be the optimal solution.

In some cases the advances would be payed through offcycle payroll run and would be recovered thourgh a deduction wagetype.And finally during FI posting it would be accounted to finance department.

Plz rewards points if this has helped u and close the thread!

Good Luck

Rajeev