SAP MM Master Data

What is Master Data?

Master data is the core data that is used as a base for any transaction. If you are producing, transferring stock, selling, purchasing, doing physical inventory, whatever your activity may be, it requires certain master data to be maintained.                                                                                      Example of Master Data

• Material master data 
• Customer master data 
• Vendor master data
• Pricing/conditions master data 
• Warehouse management master data (storage bin master data).

Material master data:

Material master data, the basic details on materials an enterprise procures externally or produces in-house. The unit of measure and the description of a material are examples of the data stored in a material master record. Other SAP Logistics components also access the material data.

The material master database (often referred to simply as the “material master“, and comprising all the individual material master records stored in the system) contains descriptions of all materials that an enterprise procures, produces, and keeps in stock. It is the central repository of information on materials (such as inventory levels) for the enterprise.

The integration of all material data in a single materials database eliminates the problem of data redundancy and permits the data to be used not only by Purchasing, but by other applications (such as Inventory Management, Materials Planning and Control, Invoice Verification, and so on).

Vendor master data                                                                                                                          called as Information about external suppliers. The vendor’s name and, the currency the vendor uses, and the vendor number (stored in the SAP system as an account number) are typical vendor data.

The vendor master database contains information about the vendors that supply an enterprise. It consists of a large number of individual vendor master records, each containing the relevant vendor’s name and address as well as data such as:

• The currency used for ordering from the vendor
• Terms of payment
• Names of important contact persons (sales staff)

In Accounting, the vendor represents an account payable, the vendor master record also contains accounting information, such as the relevant control account (reconciliation account) in the general book keeping system.

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