What is the Purpose of Partner Function in SAP SD

As per the standard SAP, a customer master will be maintained with four major partner functions, as described below: The basic customer master records that will be created are

  • The Sold to party record – Sold to Party is the one who places the sales order
  • The Ship to party record – Ship to Party is the one to whom the goods are shipped
  • The Bill to party record – Bill to Party is the one to whom the invoices are billed
  • The payer record – Payer is the one who settles the invoice

In general, the above-mentioned partner functions refer to only one customer. In case the ship-to party or the bill-to party or the payer is different from the sold-to party, a separate master record needs to be createdand assigned to that sold-to party.

At the time of sales order creation, the system will prompt to choose the required ship-to party and/or bill-to party and/or payer from the available list if any of these partner functions is maintained more than once in the sold-to party.

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