Business Partner Management

Overview

• What you’ll learn: How to configure and manage business partners in iDempiere, including customer, vendor, and employee roles, address and contact management, credit control, payment terms, price lists, and how business partners link to the transactional document chain.
• Prerequisites: Lesson 7 – Data Model Fundamentals
• Estimated reading time: 22 minutes

Introduction

In any ERP system, the concept of a business partner is central to almost every business process. Whether you are creating a sales order, receiving an invoice from a supplier, processing payroll, or shipping goods to a warehouse, you are always working with a business partner. iDempiere uses a unified business partner model that consolidates customers, vendors, employees, and other external parties into a single entity. This design simplifies data management, eliminates duplication, and provides a 360-degree view of every relationship your organization maintains.

This lesson provides a comprehensive guide to business partner management in iDempiere. You will learn the data structure behind business partners, how to configure them for different roles, how to manage their addresses and contacts, and how the business partner entity connects to orders, invoices, payments, and the broader ERP ecosystem.

What Is a Business Partner in iDempiere?

A business partner (often abbreviated as BP) is any entity your organization has a business relationship with. Unlike some ERP systems that maintain separate master files for customers, vendors, and employees, iDempiere uses a single master record in the C_BPartner table. The same record can simultaneously serve as:

• A customer who buys your products or services
• A vendor who supplies materials or services to you
• An employee who works for your organization

This unified approach reflects real-world business relationships. A supplier might also purchase products from you. An employee might also be a customer. Rather than creating separate records and trying to cross-reference them, iDempiere handles all roles within a single entity.

The C_BPartner Table Structure

The C_BPartner table contains the core attributes of every business partner. The most important columns include:

BP Key (Value) vs Name

It is important to understand the distinction between the Value (Search Key) and the Name fields. The Value is a short, unique identifier optimized for searching and data entry. When you type a business partner search key in an order or invoice, the system uses the Value field for lookup. The Name is the full display name shown on documents, reports, and throughout the user interface.

Common strategies for assigning Search Keys include:

• Auto-numbering: Let iDempiere generate sequential values using a document sequence defined for the BP window.
• Meaningful codes: Use a prefix indicating the BP type followed by a number (e.g., “C-1001” for customers, “V-2001” for vendors).
• External identifiers: Use the customer or vendor number from an external system for easy cross-referencing during migration.

Business Partner Groups

Every business partner must belong to a Business Partner Group (C_BP_Group). Groups serve multiple purposes:

• Classification: Organize business partners into logical categories (e.g., “Domestic Customers,” “International Vendors,” “Employees”).
• Default accounting: Each group can define default accounting dimensions (receivables account, payables account, etc.) that are automatically applied to business partners in that group.
• Default pricing: Groups can specify a default price list that is assigned to new business partners upon creation.
• Default payment terms and discount schemas: These commercial terms can be defaulted at the group level.
• Credit management: Groups can define default credit limits and credit management rules.

When you create a new business partner and select a group, the system can populate default values from the group record, reducing data entry and ensuring consistency across your partner base.

Setting Up BP Groups

Navigate to the Business Partner Group window to manage groups. A typical setup might include:

• Standard: The default group for general business partners.
• Key Accounts: High-value customers requiring special terms.
• Suppliers: Primary vendor group with purchasing defaults.
• Employees: Staff members with HR-related defaults.
• One-Time: Casual or one-time customers/vendors.

Customer, Vendor, and Employee Configuration

The three role flags on the business partner header (IsCustomer, IsVendor, IsEmployee) activate role-specific tabs and functionality throughout the system.

Customer Configuration

When IsCustomer = 'Y', the Customer tab becomes visible on the Business Partner window. This tab contains sales-specific settings:

• C_PaymentTerm_ID: Default payment terms for sales invoices (e.g., Net 30, 2/10 Net 30).
• M_PriceList_ID: Default sales price list determining product pricing for this customer.
• PaymentRule: Preferred payment method (Check, Credit Card, Direct Deposit, On Credit, Cash).
• DeliveryRule: When to deliver (After Receipt, Availability, Complete Order, Force).
• DeliveryViaRule: How to deliver (Pickup, Delivery, Shipper).
• InvoiceRule: When to invoice (After Delivery, After Order, Immediate, Customer Schedule).
• SO_CreditLimit: Maximum credit extended to this customer.
• SO_CreditUsed: Current outstanding credit (calculated automatically).
• SalesRep_ID: Assigned sales representative.
• M_DiscountSchema_ID: Discount schema for automatic pricing discounts.
• C_Dunning_ID: Dunning rules for late payment reminders.

Vendor Configuration

When IsVendor = 'Y', the Vendor tab becomes visible with purchasing-specific settings:

• PO_PaymentTerm_ID: Default payment terms for purchase invoices.
• PO_PriceList_ID: Default purchase price list.
• PaymentRulePO: Preferred payment method for vendor payments.
• PO_DiscountSchema_ID: Purchase discount schema.

Employee Configuration

When IsEmployee = 'Y', the business partner is recognized as an employee. In systems with the HR/Payroll module active, additional tabs and fields become available for managing employment details, salary information, and payroll processing. Even without the HR module, the employee flag enables time and expense reporting functionality.

Greeting and Title

The C_Greeting_ID field links to the C_Greeting table, which stores formal salutations used in correspondence and document generation. Standard greetings include Mr., Mrs., Ms., Dr., and company-level greetings like “Dear Sir/Madam.” Greetings are multi-language enabled, so the appropriate translation is used based on the business partner’s language preference.

BP Locations: Managing Addresses

Business partners typically have one or more physical addresses. In iDempiere, addresses are managed through the C_BPartner_Location table, which links a business partner to a C_Location record.

The Two-Table Design

The address model uses two tables for good reason:

• C_Location: Stores the physical address details (street, city, postal code, region/state, country). This table is generic and can be referenced by any entity that needs an address.
• C_BPartner_Location: Links a specific location to a specific business partner and adds business context (is this a bill-to address? Ship-to? Remit-to?).

Address Types

Each C_BPartner_Location record can be flagged with one or more of the following roles:

• IsBillTo: This address can receive invoices.
• IsShipTo: This address can receive shipments.
• IsRemitTo: Payments can be remitted to this address.
• IsPayFrom: Payments originate from this address.

A single address can serve multiple roles. For example, a small business might use the same address for both billing and shipping. A large enterprise might have separate headquarters (bill-to), warehouse (ship-to), and payment processing center (remit-to/pay-from) addresses.

Multiple Locations

A business partner can have any number of locations. When creating a transaction (order, invoice), the system presents the available addresses for that BP, filtered by the appropriate type. For a sales order, the Bill To Address dropdown shows only locations flagged as IsBillTo, and the Ship To Address dropdown shows only IsShipTo locations.

Address Formatting

The C_Location table stores structured address data (Address1, Address2, City, Postal, C_Region_ID, C_Country_ID). Each country has an address format template in C_Country that controls how the address is displayed on printed documents. This means addresses for US partners format differently from addresses for Japanese or German partners, following each country’s conventions.

Contacts: Managing People

Business partners represent organizations, but you interact with specific people within those organizations. In iDempiere, contacts are managed through the AD_User table, linked to the business partner via C_BPartner_ID.

Why AD_User?

It may seem surprising that contacts are stored in a table named AD_User, which is also where system login accounts live. This is by design: in iDempiere, a contact person at a business partner can optionally also be a system user who logs in through the web client or web store. The same record serves both purposes, with login-related fields (password, email for login, role assignments) activated only when the contact needs system access.

Contact Information

Each contact record includes:

• Name: The contact’s full name.
• Title: Job title or position.
• EMail: Email address (also used as login identifier if the contact has system access).
• Phone / Phone2: Primary and secondary phone numbers.
• Fax: Fax number.
• C_Greeting_ID: Personal greeting/salutation.
• C_BPartner_Location_ID: The specific BP location this contact is associated with.
• Description / Comments: Free-text notes about the contact.
• IsActive: Whether the contact is currently active.
• NotificationType: Preferred notification method (Email, Notice, Both, None).

Multiple Contacts

A business partner can have any number of contacts. When creating documents, you can select the specific contact person who is relevant to that transaction. The system defaults to the contact marked with the highest priority or the one most recently used, depending on the context.

Credit Management

iDempiere includes built-in credit management capabilities at the business partner level. These features help organizations control financial risk by monitoring and limiting the credit extended to customers.

Key Credit Fields

• SO_CreditLimit: The maximum outstanding balance (credit limit) allowed for this customer. When set to zero, no credit checking is performed.
• TotalOpenBalance: The current total of unpaid invoices for this business partner. This value is automatically calculated by the system.
• SO_CreditUsed: The current credit utilization, including both posted invoices and open (not yet invoiced) orders.
• SOCreditStatus: The current credit status, which can be:
  • OK (O): Credit is within limits.
  • Watch (W): Approaching the credit limit (configurable threshold).
  • Hold (H): Credit limit has been exceeded; orders may be blocked.
  • Stop (S): Manually set to prevent any new orders.

Credit Check Behavior

When a user attempts to complete a sales order, the system checks the customer’s credit status. If the outstanding balance plus the order amount would exceed the credit limit, the system can:

• Warn the user but allow the order to proceed.
• Block the order from being completed until credit is approved.
• Require a supervisor override to process the order.

The exact behavior depends on the credit management rules configured in the accounting schema and the business partner’s credit status.

Payment Terms

Payment terms (C_PaymentTerm) define when and how invoices are expected to be paid. Each business partner can have default payment terms assigned for both sales (customer) and purchasing (vendor) transactions.

Common Payment Term Configurations

• Immediate: Payment due upon invoicing.
• Net 30: Full payment due 30 days after the invoice date.
• 2/10 Net 30: 2% discount if paid within 10 days, otherwise full amount due in 30 days.
• Net 60: Full payment due 60 days after the invoice date.

Payment terms are defined with a combination of net days, discount percentage, discount days, and an optional fixed day of the month. They can also be configured with multiple schedule lines for installment payments (e.g., 50% due in 30 days, 50% due in 60 days).

Price Lists

Each business partner can be assigned a default price list (M_PriceList) that determines product pricing for transactions with that partner. The price list system in iDempiere is structured in three levels:

1. M_PriceList: The top-level definition, specifying the currency, whether it is a sales or purchase price list, and whether prices include tax.
2. M_PriceList_Version: A dated version of the price list. Multiple versions allow for price changes over time, with the system automatically selecting the version valid for the transaction date.
3. M_ProductPrice: Individual product prices within a price list version, including List Price, Standard Price, and Limit (floor) Price.

When a product is added to an order or invoice for a specific business partner, the system looks up the price from the BP’s assigned price list, using the version valid for the document date.

The Business Partner Window Walkthrough

Now that you understand the underlying data structures, let us walk through the Business Partner window tab by tab, as it appears in the iDempiere user interface.

Tab 1: Business Partner (Level 0 — Header)

This is the main tab where you create and view the core BP record. Key actions on this tab include:

• Setting the Search Key (Value), Name, and Description.
• Selecting the BP Group.
• Checking the Customer, Vendor, and/or Employee flags.
• Setting the Tax ID and other identification fields.
• Viewing the calculated credit fields (TotalOpenBalance, SO_CreditUsed).

Tab 2: Customer (Level 1)

Visible only when IsCustomer is checked. Contains sales-specific configuration: payment terms, price list, payment rule, delivery rule, invoice rule, credit limit, sales representative, discount schema, and dunning settings.

Tab 3: Vendor (Level 1)

Visible only when IsVendor is checked. Contains purchasing-specific configuration: PO payment terms, PO price list, PO payment rule, and PO discount schema.

Tab 4: Employee (Level 1)

Visible only when IsEmployee is checked. Contains employment-related fields and, when the HR module is active, links to payroll and employment records.

Tab 5: Location (Level 1)

Manages the BP’s addresses through C_BPartner_Location. Each row represents an address with its bill-to, ship-to, remit-to, and pay-from flags. The location editor opens a structured dialog for entering address components.

Tab 6: Contact (User) (Level 1)

Manages contact persons through AD_User records linked to the BP. Each contact has name, title, email, phone, and an optional link to a specific BP location.

Tab 7: Bank Account (Level 1)

Manages the BP’s bank accounts through C_BP_BankAccount. Each record stores the bank, routing/transit number, account number, and account type. This information is used for electronic payment processing (ACH, wire transfers, direct deposits).

Additional Tabs

Depending on the iDempiere configuration and installed plugins, additional tabs may appear for:

• Withholding: Tax withholding configurations for certain localizations.
• Memo: Internal notes and memos about the BP.
• Interest Area: Marketing subscription preferences.
• Accounting: Override default accounting dimensions for this specific BP.

Searching and Filtering Business Partners

Given that a system may contain thousands of business partners, efficient search and filtering are essential.

Quick Search

The search field in the toolbar allows quick lookup by Value (Search Key) or Name. Type part of the key or name, and the system displays matching records.

Advanced Query

The Advanced Query (magnifying glass icon or F7) opens a flexible search panel where you can build complex filters combining multiple fields: BP Group, city, country, customer/vendor flags, credit status, and any other field on the BP record.

Info Window

The Business Partner Info window (accessible from lookup fields throughout the system) provides a dedicated search interface with columns for Value, Name, Contact, City, Phone, and outstanding balances. This is the primary way users select business partners when entering transactions.

Saved Queries

Frequently used search criteria can be saved as named queries and reused, saving time for administrators who regularly work with specific subsets of business partners.

How Business Partners Link to Transactions

The C_BPartner_ID column appears as a foreign key on virtually every transactional table in iDempiere. This creates a comprehensive web of relationships:

• C_Order: Every order references a business partner (the customer or vendor).
• C_Invoice: Every invoice is issued to or received from a business partner.
• M_InOut: Every shipment/receipt is associated with a business partner.
• C_Payment: Every payment is made to or received from a business partner.
• C_AllocationLine: Payment-to-invoice allocations reference the business partner.

This linkage means you can start from a business partner record and trace every transaction ever conducted with that partner. Reports like the Open Items report, Aging Report, and Business Partner Transaction report leverage these relationships to provide comprehensive views of the business relationship.

The 360-Degree View

By navigating from the Business Partner window to related windows (or using dedicated reports), you can assemble a complete picture of any business relationship:

• All orders placed by or for the BP
• All invoices issued to or received from the BP
• All shipments sent to or received from the BP
• All payments made or received
• Outstanding balance and aging analysis
• Credit status and history
• Complete communication trail through contacts

Key Takeaways

• A business partner in iDempiere is a unified entity that can simultaneously be a customer, vendor, and/or employee, avoiding data duplication.
• The Search Key (Value) is the unique, short identifier used for quick lookups, while the Name is the full display label.
• BP Groups provide default values for accounting, pricing, payment terms, and credit management, ensuring consistency and reducing data entry.
• Addresses are managed through C_BPartner_Location linked to C_Location, with flags controlling which addresses serve as bill-to, ship-to, remit-to, and pay-from.
• Contacts (AD_User) are people associated with a business partner who can optionally also be system users with login access.
• Credit management features (SO_CreditLimit, TotalOpenBalance, SOCreditStatus) help control financial risk at the customer level.
• Payment terms and price lists assigned to business partners automate pricing and payment expectations across all transactions.
• The C_BPartner_ID foreign key appears on orders, invoices, shipments, and payments, creating a complete transaction trail for every business relationship.

What’s Next

With a solid understanding of business partners, you are ready to move on to more advanced topics. The upcoming lessons will explore product management, price lists and pricing, and the order-to-cash process flow, building on the business partner foundation you have established here.