Master Data and Transactional Data in SAP ERP: An Overview

 Master data and transactional data are two types of data in SAP ERP. Here is an overview of each:

1. Master Data: Master data is a set of core data that remains relatively unchanged over time. It represents the key entities with which a business operates, such as customers, vendors, materials, and employees. Master data provides a consistent and central point of reference for all transactions in an organization. Master data is typically created once and maintained over time. For example, the vendor master record contains information about a vendor, such as their name, address, payment terms, and bank information.

2. Transactional Data: Transactional data represents the day-to-day business activities that create, modify, or delete master data. It includes information about business transactions, such as sales orders, purchase orders, goods receipts, and invoices. Transactional data is typically created and updated frequently and provides a record of business activities. For example, a sales order contains information about a customer's order, including the product, quantity, price, and delivery date.

In summary, master data represents the core entities with which a business operates, while transactional data represents the day-to-day business activities that create, modify, or delete master data. Both types of data are critical for running a business and are used together in SAP ERP to provide a comprehensive view of an organization's operationsMaster Data and Transactional Data in SAP ERP: An Overview