Master Data in SAP refers to the core business data that remains consistent over time and is used across various SAP modules and processes. It serves as the foundation for all transactions and business operations, ensuring data consistency and accuracy. In SAP, there are seven main types of master data, which are detailed below:
- Customer Record
- Vendor Records
- Material Master.
- G/L Accounts.
- Info Records.
- Condition Records.
- Bill of Materials
Master Data in SAP
1. Customer Record
Customer records store all the critical information about customers, including their names, contact details, payment terms, and credit limits. These records are essential for the Sales and Distribution (SD) module, as they are used in sales orders, billing, and shipping processes. For example, a company selling electronic goods uses customer records to track orders and manage payments for individual clients.
2. Vendor Records
Vendor records hold the data of suppliers from whom goods or services are procured. This data includes vendor names, payment terms, banking details, and tax information. Vendor records are critical in the Materials Management (MM) and Accounts Payable processes. For instance, a manufacturing company uses vendor records to manage relationships and transactions with raw material suppliers.
3. Material Master
Material Master is a comprehensive repository containing all information about materials used by the company, whether raw materials, finished goods, or services. This data includes pricing, inventory levels, procurement methods, and storage requirements. Material Master is used across modules like MM, Production Planning (PP), and Sales and Distribution (SD) to streamline material-related operations.
4. General Ledger (G/L) Accounts
G/L Accounts are part of the Financial Accounting (FI) module and represent the organization’s accounting system. They are used to record and categorize all financial transactions, including revenue, expenses, assets, and liabilities. For example, sales revenue is posted to a specific G/L account to maintain accurate financial reporting.
5. Info Records
Info Records provide information about the relationship between a vendor and a material. They store data like pricing, lead times, and terms of purchase for a specific vendor-material combination. These records are essential for procurement planning and are widely used in the MM module.
6. Condition Records
Condition records are part of the Pricing Procedure in SAP. They store pricing details for sales or procurement processes, such as discounts, surcharges, or taxes. These records ensure accurate pricing during sales order creation or vendor invoice verification.
7. Bill of Materials (BOM)
A BOM is a structured list of all components required to manufacture a product. It is a key element in the Production Planning (PP) module. For example, a BOM for a car would include parts like the engine, tires, and electrical components, along with their quantities.
End User Perspective
End users interact with master data in their day-to-day tasks, such as creating sales orders, posting invoices, or generating financial reports. The accuracy and consistency of master data are crucial for smooth operations and error-free transactions across all business processes.