Hi Rao,
seems like you have not activated Customer/Vendor integration? The can be a 1 way or 2 way replication of master data (FK01 --> BP, or FK01 <--> BP).
Please have a look at the following cconfig path:
Cross-Application Components --> Master Data Synchronization --> Customer/Vendor Integration --> Business Partner Settings --> Settings for Customer Integration and Settings for Vendor Integration (depending on what you want.
Hope this helps.
Cheers, Rick