What is master data in sap?

Master data in SAP refers to the key data elements that are required to perform various business processes within the SAP system. It represents the core information that remains relatively stable for a longer period of time, such as customers, vendors, products, and employees.

Master data is used across different modules of SAP to ensure consistent data management and enhance system efficiency. It serves as a foundation for transactional data and enables integration between different business processes within the SAP system.

Some common types of master data in SAP include:

1. Customer Master Data: It includes information about the customers such as name, address, contact details, credit limit, payment terms, etc. This data is utilized in various sales and distribution processes.

2. Vendor Master Data: It contains information about vendors such as name, address, bank details, payment terms, etc. This data is used in procurement processes and for managing vendor relationships.

3. Material Master Data: It encompasses information about products or materials, including their description, attributes, units of measure, inventory details, and pricing information. This data is utilized in different modules like procurement, sales, production, and inventory management.

4. Employee Master Data: It includes details about employees such as personal information, job positions, departments, qualifications, payroll data, etc. This data is crucial for HR processes, payroll management, and organizational planning.

5. Financial Master Data: It involves data related to financial entities, such as general ledger accounts, cost centers, profit centers, and profit and loss statements. This data is utilized in financial accounting and controlling processes.

Master data in SAP needs to be managed and maintained centrally to ensure data consistency and integrity. Organizations often establish specialized teams or specific roles to handle master data governance, maintenance, and quality control within the SAP system.