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 a cross-application basis. This avoids the multiple storage (redundancy) of data.
Watch the following video to learn how master data is stored and used in sourcing and procurement using the example of a purchase order.
When a purchase order is created, data is transferred by default from existing master records to the purchase order. This reduces the effort required to enter the data. Data such as quantity unit, material short text, and purchase order text are copied from the material master into the new document. The supplier address and data for payment processing are transferred from the supplier master record. Supplier-specific data for a certain material, such as delivery time and price, can be taken from the purchasing info record.
SAP Best Practices content is delivered with sample master data and you can also create your own master data by following the master data scripts available on SAP Best Practices - Create Your Own Master Data.