Why vendor classification is done in sap , what is the use and purpose?

[former_member590551]

Why vendor classification is done in sap , what are registered and non registered vendor ,what is the use and purpose?

[ankurch · Accepted solution]

Hello Ankita,

I think about your classification query must be resolved by balasubramanian.ap for registered and non-registered is something vendor has been registered for GSTN or not, in terms of GST, if vendor is registered with GSTN then we pay GST to the vendor and vendor will take tax credit, if not then we need to create case for Reverse charge mechanism, where we take the input tax credit instead of vendor.

Thanks,