Master Data Types as Categories of Information

Master data types in SAP IBP serve as the beacons of critical business information. They are data sets that describe the main entities involved in a business, such as products, customers, suppliers, and more. This master data is typically static with a low frequency of changes, differentiating it from transactional data, which involves regular updates and fluctuations.

For example, the 'product' master data type may include the product identification number (SKU), product category, dimensions, weight, manufacturer, and other relevant details. Similarly, 'location' master data can store information about plant codes, distribution centers, locations of retail outlets, and so on.

The integration and consistency of master data are pivotal to organizational decision-making and planning. It is the backbone of all transactions and analytics, bringing a single version of truth to the data. If a product is represented differently in various segments of the organization, it can lead to confusion, inaccuracies in planning, and mismatches in inventories. This highlights the importance of central governance and the integrity of master data to ensure uniformity.

Master data types bring considerable benefits to business planning in SAP IBP. The consistent and uniform identifiers enable a more accurate and efficient forecasting process. They are also key to facilitating cross-functional alignment within the organization, as everyone is aligned with a common data model, which further enables collaborative planning.

However, the management of master data types should be carried out diligently. Regular data cleansing and governance, solving inconsistencies, and accurately maintaining relationships between different data types are vital practices.

To sum up, master data types in SAP IBP lay the groundwork for all subsequent analysis and planning in the business planning process. Ensuring they are accurately defined, consistently maintained, and correctly used can result in effective and accurate planning contributing to informed and strategic decision-making within the organization. As we navigate the intricacies of business planning, master data types in SAP IBP act as crucial reference points, marking the route to a streamlined and effective planning process.

Note the following points:

• Master data types are like categories of data, for example, customer, location, product, resource, and product location categories.

• A master data type can have many attributes or supporting data; for example, an attribute of the customer master data type could be the customer country or customer region. There are also master data types that have just one attribute.

In this course, we focus on simple and compound master data types.

The following master data types are available in SAP IBP:

• Simple Master Data Type

  Simple master data type forms the most fundamental category. It serves as a unique identifier for a single entity in a business operation. A simple dimension could be something like 'Product' or 'Location', straightforward units that are part of the master data and serve to differentiate various items, products, or locations in a database.

• Compound Master Data Type

  Compound master data types, as the name suggests, consist of two or more master data types combined to form a unique identifier. For instance, a 'Location-Product' compound master data type could store information about which products are in which locations, an attribute essential for location-specific planning and product segmentation.

• Reference Master Data Type

  Reference master data type consists of data elements that are linked to another master data type. It provides context to them. For example, the "Currency To" master data type references the currency master data type. You cannot load data onto a reference master data type. Using the reference master data type prevents users from entering the same data more than once.

• Virtual Master Data Type

  Virtual master data type is a computed version of the existing master data and does not physically exist. They are derived from existing master data attributes, and their value is calculated or determined based on certain rules or scripts. For instance, a virtual master data type could be used to segment customers into categories like 'High Value', 'Medium Value', or 'Low Value' based on their purchasing habits. Virtual master data types are used to create a connection between two or more master data types that otherwise have no connection to each other.

• External Master Data Type

  External master data type refers to data elements that are maintained in an external database but are crucial for planning within SAP IBP. This allows SAP IBP to integrate with other systems and utilize external data in the planning process. For instance, exchange rate information, which might be stored in a separate financial system, could be used in SAP IBP for cost planning and revenue forecasting. Before you can use the external master data type, the database tables they retrieve their content from have to be integrated from SAP ERP to SAP HANA database tables inside SAP Integrated Business Planning.