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Master Data in SAP MM

Updated: Aug 11, 2023

Master data is the foundation of any enterprise resource planning (ERP) system. It is the core set of data that defines the entities that an organization interacts with, such as customers, vendors, products, and locations. Master data is used by all of the different modules in an ERP system, which is essential for ensuring the accuracy and consistency of information across the enterprise.


There are many different types of master data that can be created in SAP, but some of the most common types include:

Material master data: This data provides information about the materials that an organization procures, produces, stores, or sells. It includes information such as the material number, description, unit of measure, price, and availability.

Vendor master data: This data provides information about the vendors that an organization does business with. It includes information such as the vendor number, name, address, contact information, and payment terms.



Purchasing info records: This data provides information about the specific terms and conditions that an organization has agreed to with a vendor. It includes information such as the lead time, payment terms, and incoterms.

Source lists: This data specifies the possible sources of supply for a material. It is used to determine which vendor to order from when a material is needed.

Quota arrangements: This data specifies the quantity of a material that can be ordered from a particular vendor. It is used to prevent an organization from over-ordering from a vendor.

Condition records: This data specifies the prices and discounts that are applied to a material when it is purchased.

Accurate and consistent master data is essential for the success of any ERP system. It provides the foundation for accurate and consistent information across the enterprise, which is essential for making informed decisions and ensuring compliance with regulations.


Here are some of the benefits of having accurate and consistent master data:

Improved efficiency: When master data is accurate and consistent, it can help to improve the

efficiency of business processes. For example, if the material master data is accurate, it can help to reduce the time it takes to process purchase orders.

Improved decision-making: Accurate and consistent master data can help to improve decision- making by providing businesses with the information they need to make informed choices. For example, if the customer master data is accurate, businesses can better understand their customer base and make more effective marketing decisions.

Increased compliance: Accurate and consistent master data can help businesses to comply with regulations. For example, if the product master data is accurate, businesses can ensure that they are complying with product safety regulations.


Master data is so important because it is the foundation of any ERP system. It provides the information that is used by all of the different modules in an ERP system, and it is essential for ensuring the accuracy and consistency of information across the enterprise.


That is why it is so important to carefully manage master data. This includes regularly updating. This can lead to problems such as lost sales, increased costs, and regulatory fines.


That is why it is so important to carefully manage master data. This includes regularly updating master data, ensuring that it is accurate and consistent, and protecting it from unauthorized access.


By taking the time to manage master data properly, businesses can ensure that their ERP systems are reliable and efficient and that they are in compliance with regulations.


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