Vendor Data Migration in Manufacturing: Why It’s Your Biggest Risk in SAP Projects
- ankitasondhiya
- Jul 10
- 4 min read
Part 2 of our ‘Business Partner Migration’ series
When moving from a legacy ERP to SAP S/4HANA Cloud, Vendor master data can quietly become your one of the biggest headache — especially for manufacturers dealing with thousands of suppliers, multiple plants, and local variations.
Here’s the hard truth:Old systems like AX 2012 or Oracle EBS were flexible. SAP isn’t.That’s exactly why it works better — but only if you get your vendor data right.
Real-Life Problems Data Stewards Know Too Well
One of the data stewards described it perfectly:
“We found so many duplicate vendors, different bank accounts, inconsistent postal codes, and random tax IDs. Each plant had its own version of reality. SAP forced us to fix it — or face blocked invoices later.”
Why Vendors Are So Messy in Manufacturing
1) Multiple plants = Multiple vendor versions Plants often onboard the same supplier
separately. Different names, addresses, payment terms, or even bank accounts.
Example: A packaging vendor appeared six times — “ABC Ltd.”, “A.B.C Limited”, “ABC Packaging”. In SAP, you need ONE clean record.
2) Bank Details = Bank details stored in free text Legacy ERPs let you dump IBANs, BICs, or local bank numbers without validation. SAP needs standard formats — or your payment run will fail.
3) Address Details = Messy addresses Street and house numbers mashed together. Missing postal codes. For manufacturers shipping goods or paying invoices globally, that’s a compliance and logistics nightmare.
4) Duplicates between vendors & customers = Many manufacturers work with the same company as both supplier and customer. In SAP, this needs a unified Business Partner with correct roles — not separate records.
5) Missing or wrong tax numbers = Local VAT, GSTIN, or PAN numbers are often missing or stored inconsistently — but SAP’s posting logic relies on them.
How Bad Data Hurts You in SAP
Duplicate vendors → duplicate invoices → double payments
Wrong bank accounts → failed payments or funds lost
Invalid addresses → rejected tax filings, compliance fines
Contacts not linked → blocked approvals, manual rework
The Hidden Impact on Data Migrations
Vendor data issues aren't just an annoyance — they directly impact your ability to migrate cleanly into SAP S/4HANA. What looks like a naming inconsistency or missing tax ID in your legacy ERP becomes a technical blocker during migration.
Here’s how poor vendor data derails your migration:
Mapping chaos: Multiple versions of the same vendor (e.g., “ABC Ltd.”, “A.B.C Limited”) create confusion during mapping. This forces manual intervention and slows down cutover timelines.
Load failures and rejections: Bank accounts in free text, invalid tax numbers, and incomplete addresses will fail SAP validation rules during data loads, especially via the Migration Cockpit.
Post-load reconciliation nightmares: Once data is loaded, unresolved duplicates can result in duplicate vendor IDs, double payments, and finance teams chasing their tails to reconcile mismatches — right when your business expects a “go-live ready” system.
Lesson: Migrate dirty data, and you’ll spend go-live firefighting. Clean it upfront, and you’ll glide through migration.
5 Practical Solutions for Clean Vendor Data
Run deduplication checks before you load, Use fuzzy match tools to find “lookalike” vendors. Merge them to a single BP record.
Standardize addresses & postal codes, Validate postal codes using official postal services or a master data tool. Use the staging table approach to fix fields before the final Migration Cockpit load.
Validate bank accounts Format all IBANs/BICs correctly. Deactivate obsolete bank accounts that plants no longer use.
Reconcile tax IDs, Cross-check missing or invalid GSTIN, VAT, or PAN with local suppliers. Add logic in your transformation layer to fix missing fields.
Map contact persons to Ensure every vendor BP has the right contacts assigned — with correct roles — so purchasing workflows work on Day 1.
The Bigger Picture: Impact on Digital Transformation
Vendor master data isn’t just a technical artifact. It’s a strategic enabler — or a bottleneck — for your digital transformation.
Automation breaks: SAP is designed for straight-through processing. Messy vendors stop automated invoice matching, payment runs, and approval workflows — dragging your digital vision back into manual mode.
Compliance risks multiply: Invalid addresses or tax numbers don’t just break postings — they invite audit issues, tax penalties, and regulatory non-compliance.
Global operations suffer: Manufacturers running in multiple countries can’t afford inconsistent vendor data. Inaccurate addresses, missing bank details, or local naming conventions lead to shipping delays, payment errors, and supply chain friction.
MDG initiatives collapse: If your vendor master isn’t cleaned at the source, your Master Data Governance efforts downstream will constantly fight symptoms instead of solving root causes.
Lesson: Data quality isn't an IT goal — it’s a business continuity mandate during digital transformation.
Key Takeaway: Treat Vendor Data Like Gold
Poor vendor data means blocked invoices, frustrated suppliers, delayed payments, and huge manual rework costs.
Clean it once — get it right — and your S/4HANA project stays smooth.
Up Next in the Series: Customer Data Pitfalls
“In our next post, we’ll dive into Customer Master Data — exploring how inconsistent contact persons, payment terms, and sales areas can create just as much risk and complexity as vendors do.
We’ll also cover practical ways to tackle these issues and explain how SAP expects customers who are also business partners to be correctly related.
From scattered records to clear Sold-To, Bill-To, and Ship-To party classification — we’ll show you how to get it right.”
Missed Part 1?
Catch up on Why Business Partner Migration Can Make or Break Your S/4HANA Journey
