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SAP · Module 5 of 10

Master data

The core records every transaction uses: customers, vendors, materials.

📖 Key ideas

  1. Master data changes rarely and is used again and again: customer, vendor (business partner), material, GL account.
  2. Transaction data is each event: an order, a receipt, an invoice.
  3. In S/4HANA, customers and vendors are kept as business partners.
  4. Bad master data (wrong GST number, wrong address) causes errors in every transaction.
  5. Companies have data owners and approval rules for creating master data.
💡 Real-life example: Like your Aadhaar details: entered once, then used by every bank, SIM and college form. A spelling mistake spreads everywhere.
Master dataLong-lasting core records
Transaction dataRecords of each business event
Business partnerS/4HANA record for customers and vendors
Material masterRecord of an item the company buys, makes or sells