Unit 2 Master Data

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Unit 2 - Master Data

• Vendor Master Record

• Material Master Record

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What is master data

• Master data comprises data records that are stored in the database for a long period

of time. These data records are stored centrally, and are used and processed on across-application basis. In this way, the multiple storage (redundancy) of data is

avoided.

• Imp. Master data: Material, Vendor and record master data.

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Vendor Master Data

• The vendor master record contains information on an enterprise's vendors. This

information is stored in individual vendor master records. In addition to thevendor's name and address, a vendor master record contains data such as the

Currency, Payment Terms, contact person.

• vendor master record also contains accounting data such as the reconciliation

account from the general ledger.

• Data in the vendor master record is subdivided into the following categories

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• General data : This data is valid for the whole client. It includes the vendor.s

address and bank details.

• Accounting data: This is maintained at company code level. It comprises data

such as the number of the reconciliation account and the payment methodsfor automatic payment transactions.

• Purchasing data : This data is maintained for each purchasing organization. It

includes the purchase order currency, Incoterms, and various control data

pertaining to the vendor. You can also maintain different data for specific

plants or for vendor sub ranges.

You can decide whether vendor master records are to be maintained

centrally (that is, all data is maintained together), or on a decentralized basis

(that is, the relevant departments each maintain their own data)

In other words: Maintenance of data centrally (XK01) or separately (MK01)

possible.

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Account Group of a vendor

When creating a vendor master record, you must decide which account group you aregoing to assign to this vendor.

Account group has control functions as below:-

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• The type of number assignment (internal or external) and the number area from

which the account number that the system uses to identify the vendor is to be

assigned.

•

The field selection - which fields are ready for user input, which fields mustbe maintained, and which fields are hidden.

• Which partner schemas are valid.

• The status - whether the vendor is a one-time vendor.

•

Customizing for Logistics - General under Business Partner→ Vendor → Control →Define Account Groups and Field Selection (Vendor)

Rec. Account

When you create a vendor master record, you need a unique number for the vendor

(creditor). This is assigned either automatically by the system, or manually by theclerk, depending on the account group. The vendor (creditor) number is also used

as the subsidiary ledger number in financial accounting. In subledger accounting,

the total liabilities are continually updated for each vendor.

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Partner Roles :

The business partner “vendor” can assume various roles in dealings with your enterprise. For example, during a procurement transaction, the vendor is first the order recipient, then the supplier of goods, and finally the invoicing party (invoice presenter).

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Blocking Vendors

• In certain cases, you may wish to stop the procurement of goods from a certain

vendor. This may be because the vendor has supplied you with products of inferiorquality. In such a case, you have the option of blocking the vendor in the vendor

master record. Once you have set the blocking indicator, purchase orders can no

longer be placed with this vendor. The block applies until you deselect the

indicator.

• T Code: XK05 (Master Data→ Vendor → Purchasing → Block)

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Material Master Record

(MM01,MM02,MM03)• The material master record is an enterprise's main source of material-specific data.

It is used by all areas of logistics.

• The integration of all material data in a single database object eliminates the

problem of data redundancy. All areas, such as purchasing, inventory

management, materials planning, and invoice verification, can jointly use the data

stored.

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The data stored in the material master record is required for many purposes, includingthe following:

• Purchasing data is required for ordering purposes

• Inventory management data is needed to post goods movements and carry outphysical inventories

• Accounting data is required for material valuation

• Materials planning data is needed for material requirements planning.

Since different user departments within an enterprise work with one material, and

each department enters different information relating to it, the data in a material

master record is subdivided according to area of use. Each user department thus

has its own view of a material master record and is responsible for maintaining

the data covered by this view.

The data screens used to process material master records can be subdivided into

the following types:

• Main data :basic data, materials planning, and so on.

• Additional data :alternative units of measure, material short descriptions, andconsumption values.

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Org. level used in material master:-

Client: General material data ( Basic data 1 Basic data 2)

Plant level: MRP data (MRP1,MRP2,MRP3,MRP4)

Storage location level: All data that is valid for a particular storage location is

stored at storage location level.

• Display Material Master Record ( MM03 or Choose Logistics → Materials

Management→ Material Master → Material → Display → Display Current )

•Creating a new material master record (MM01) : you must choose a material typeand an industry sector to which the material is to be assigned.

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• The type of number assignment (internal or external)

• The permissible number range intervals

• Which screens appear and in which order

• Which user-department-specific data is suggested for entry (in views)

• Which procurement type is allowed for a material (that is, whether the

• Material is produced in-house, procured externally, or both)

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Furthermore, the material type determines which accounts are posted when areceipt of a material into the warehouse is booked.

Like the material type, the industry sector also has a control function.

When you create a material master record, the industry sector determines:

• Which screens appear and in which order

• Which industry-specific fields appear on each screen

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• Most data in the material master record can be maintained directly by the user.

But some information is automatically updated by the system. When you enter

goods movements, for example, the system updates the stock and consumption

data.

• Extend Material Master Record : You can extend material master view with same

transaction code as we do for create i.e MM01.

• Change Material Master:- You can only change data that has already been created

vie T- code MM02, here it is not possbile to add any additional view.

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Documents

Unit 2 Master Data