Big4Guy

Master data forms the basis of the Sales and Distribution processing. Each module in SAP has some element of master data in it. One important thing to note is that the SAP SD master data will be accessed by many other modules other than SD, such as PP, FI, and CO. Master data in SAP SD is critical since it determines how system will behave. Master data has a profound effect on the business processes since it forms the highest level of data.

Master data in SD is divided into three core areas:

SAP SD Organizational Data - Organizational data represents the structure of the company. Each area within the company and business is represented in a hirerachial format. For example, a sales area is constructed of a sales organization, a distribution channel, and a division. The "Company Code" which is the highest form of master data is used in the finance module FI. This 'Company Code' is integrated in the SAP SD Sales and Distribution module through the Sales Organization. If one thinks in SAP terms, because of these linkages in the company code in SAP FI module and Sales Organization in the SAP SD module, SAP posts a particular sales transaction in the correct sales organization.

SAP SD Customer and Material Master Data - This represents the data relating to the goods and services sold by the company. It is important beacuse one needs to know which goods and services are sold to which parties. Similarly, the business might have a variety of partners which might need to be tracked. Thus Customer and Material data gets represented in the System accordingly.

SAP SD Document Master Data - Any transaction in SAP SD is stored in the form of a document. Any entry has a related document number in SAP. The document master data represents all data which is stored in a systematic way for a particular business transaction.