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SAP fundamentals · LessonBy , SAP Trainer, 10 yrs · Published · SAP S/4HANA 2023 · all levels

Master data

Master data is the long-lived, relatively static reference data that business transactions depend on, customers, vendors, materials, GL accounts and more. Getting master data right is foundational; poor master data undermines every process built on it.

Quick answer

Because master data is shared and long-lived, organisations govern it carefully (often with SAP MDG).

Key takeaways
  • Master data is created once and reused across many transactions; transaction data records individual business events that reference…
  • A single material master, for example, is maintained in views by area, basic data, purchasing, sales, accounting, each owned by a…
  • Material master (table MARA and others), everything about a product.
  • Watch out: Treating master data casually, errors propagate everywhere.

What counts as master data

  • Material master (table MARA and others), everything about a product.
  • Customer / vendor master, now unified as Business Partner in S/4HANA.
  • GL accounts, cost centers, profit centers, the finance/controlling reference data.
  • Bill of materials, routings, in manufacturing.

Master vs transaction data

Master data is created once and reused across many transactions; transaction data records individual business events that reference it. A purchase order (transaction) references a material and a vendor (master). This reuse is why master-data quality is so critical, one bad material record poisons every order that uses it.

Master data is structured by views

A single material master, for example, is maintained in views by area, basic data, purchasing, sales, accounting, each owned by a different function. This mirrors SAP’s integration: one object, many departments contributing data.

Governance

Because master data is shared and long-lived, organisations govern it carefully (often with SAP MDG). Clean, well-governed master data is one of the highest-leverage investments in any SAP programme.

Common pitfalls

  • Treating master data casually, errors propagate everywhere.
  • Incomplete views, a material without an accounting view cannot be posted.
  • No governance, duplicates and inconsistencies accumulate.

Practice challenge

+0 XPStreak ×0
Question 1 of 3
Which statement is true of Master data?

Frequently asked questions

What does the term Master data refer to in SAP?
Master data is the long-lived, relatively static reference data that business transactions depend on, customers, vendors, materials, GL accounts and more. Getting master data right is foundational; poor master data undermines every process built on it.
Which SAP tables hold the data behind Master data?
Material master (table MARA and others), everything about a product. Customer / vendor master, now unified as Business Partner in S/4HANA. GL accounts, cost centers, profit centers, the finance/controlling reference data.
What is another point to note about Master data?
Because master data is shared and long-lived, organisations govern it carefully (often with SAP MDG).
What tends to go wrong with Master data?
Treating master data casually, errors propagate everywhere. Incomplete views, a material without an accounting view cannot be posted. No governance, duplicates and inconsistencies accumulate.
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