Master Data in SAP

Introduction

Before we discuss about Master Data in SAP MM, let us discuss about type of Data in SAP.

SAP R/3 works on real-time data i.e. it makes sure that there is no time lag between data availability and data storage.

Data stored in SAP R/3 is categorized as:

  • Master data: Data that is created centrally and is the core used as base data for any transaction is called Master Data in SAP. For example, Material and Vendor are types of master data.
  • Transactional data: Data that is related to business transactional processes.

Types of Master Data

  1. Material Master data
  2. Vendor Master data

Material Master Data

Materials in SAP are a logistic representation of certain goods/services that is an object of production, sales, inventory management, etc. Material master data is the central source of information of the material that an enterprise can procure, produce or sell.

Characteristics of material master data are:

  • Material types: Materials having some basic common attributes are grouped together and are assigned a material type. Most common material types are:

 

M Type Material type description
FERT Finished Product
HALB Semi-finished Product
ROH Raw material

 

  • Material group: A material group is a wider term for a material type. Materials with some common attributes are grouped together and are assigned a material group. Let’s take an example of a finished product (material type), TV. Then the material group can be used to categorize them as Plasma TV, color TV etc.
  • Number Range: When a material master record is created, a unique number is assigned to the material, known as material number.
    The following are the two ways to assign material number.
  • External number assignment: When material number is assigned manually while creating a material.
  • Internal number assignment: The system automatically assigns the material number while creating a material.

Internal number assignment is known as Number range.

Steps to create Material Master Data

Step 1: Enter T-code MM01 in common field. A “Create Material” screen will appear.

Enter all the information such as Material number, Material type, Industry sector, etc.

MM01: Master Data in SAP
MM01: Master Data in SAP

Step 2: Select the views to maintain the material.

Maintain the Material: MM01: Master Data in SAP
Maintain the Material: MM01: Master Data in SAP

Step 3: Enter plant name and storage location for the material.

Enter Plant Name: Master Data in SAP
Enter Plant Name: Master Data in SAP

Step 4: Provide the necessary details such as moving price, standard price, unit of measure, etc.

Click on “Save” and new material is created.

New Material Creation: Master Data in SAP
New Material Creation: Master Data in SAP

To change or display material master data, use T-code MM02 and MM03 respectively.

Vendor Master Data

A vendor is the one who provides goods/ services to a company. Vendor master data is the central source of information of the vendors from an enterprise can procure. It contains information such as name, address, the currency for the transaction, payment terms, Tax details, etc.

Data in a vendor master record is categorized into:

  • General Data − It is maintained at the client level and is valid at all organizational levels.
  • Accounting Data − It is maintained at the company level and is valid for all plants belonging to that company.
  • Purchasing Data − It is maintained at the purchasing organization level.

Characteristics of vendor master data are:

  • Account group: Vendors having some common attributes are grouped together and are assigned an account group.
  • Number range: When a vendor master record is created, a unique number is assigned to the vendor, known as vendor number. A vendor number is assigned to a vendor as in the case of the material number i.e. external number assignment and internal number assignment.

Steps to create Vendor Master Data

Step 1: Enter T-code XK01 in common field. A “Create Vendor” screen will appear.

Enter all the information such as Vendor number, Company Code, Purchase Organization, Account Group, etc.

XK01: Master Data in SAP
XK01: Master Data in SAP

Step 2: Provide address details of the vendor.

Create Vendor: Master Data in SAP
Create Vendor: Master Data in SAP

Step 3: provide bank details, accounting information, terms of payment between the company and the vendor. Click on “Save” and a new vendor is created.

New Vendor Creation: Master Data in SAP
New Vendor Creation: Master Data in SAP

To change or display vendor master data, use T-code XK02 and XK03 respectively.

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