In SAP S/4HANA, customer master data is managed via the Business Partner (BP) object. A BP is created in one of three categories: Person, Organization, or Group. To create a customer master record for a company or other legal entity, the Business Partner category 'Organization' (C) is used. A BP of category 'Person' can also be a customer, but this is not an option. The BP category 'Group' cannot be used for transactional partners like customers.

The question premise that there are two correct answers is flawed based on the provided options and standard SAP S/4HANA functionality. Only 'Organization' is a valid BP category from the list that can be used to create a customer master record.

A. Company: 'Company' is a business term. The corresponding technical Business Partner category in SAP S/4HANA is 'Organization'. It is not a selectable category itself.

B. Group: The 'Group' Business Partner category is designed for creating reporting structures or relationship groupings. It cannot be used as a direct party in business transactions like sales orders.

D. Sold-to party: 'Sold-to party' is a partner function (a role), not a Business Partner category. A BP of category 'Organization' or 'Person' is assigned this role.

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1. SAP S/4HANA Help Portal

"Business Partner Category": This official documentation defines the three standard BP categories. It states

"You create a business partner in the category Organization for a legal entity... A business partner in the category Group cannot be the direct party in a business transaction." (Accessed under SAP S/4HANA -> General Functions for Key Users -> Business Partner).

2. SAP Note 2743348 - "BP of category 'Group' can't be used as Customer/Supplier/Contract Partner": This official SAP Note explicitly confirms that the 'Group' category is not intended for transactional roles such as customer or supplier

reinforcing that option B is incorrect.

3. SAP Education Courseware TS462 (SAP S/4HANA Sales - Upskilling): The unit on "Business Partner in Sales" details the BP concept

specifying that customer roles are assigned to BPs of category 'Person' or 'Organization'. It also distinguishes BP categories from BP roles (partner functions) like 'Sold-to party'.