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Define Partner Functions

In SAP you have various possibilities to assign partner functions to a business partner. For example we can have “sold to party” function, “ship to party” function, “bill to party”, “payer”, “contact person”, “forwarding agent”, “employee responsible”, “sales employee”, “vendor” function or any other out of a plethora of possibilities for partner functions according to your business needs. We can also create custom partner functions if standard ones cannot fulfill our requirements. Partner functions are utilized in sales documents throughout the process including quotations, sales orders, deliveries and invoices, and these functions imply who is the responsible party for these business functions.
Why do the partner functions exist in SAP? The main reason is that if you have a business process that has a customer which is a legal entity but shipping party should be its other legal entity, while bill to party should be third legal entity, you must have partner functions to accomplish this. So in this case our customer doesn’t need to be necessarily our ship to, bill to and sold to party, we can assign the exact legal entity that is taking the appropriate partner function in the process. So when you take a look at the process flow, you will have the exact legal entities as sold to, ship to, bill to party.

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