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Explaining Master Data in Sourcing and Procurement

<div id="content"><p tabindex="0">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.</p><p tabindex="0">Watch the following video to learn how master data is stored and used in sourcing and procurement using the example of a purchase order.&nbsp;</p><div class="kalturaVideoLessonWrapper"><div aria-label="" class="kalturaVideoLessonContainer" data-testid="video" id="1_bbxhrlpy"></div></div><img style="max-width:900px;max-height:none" class="image 1_1_landscape" title="Master Data in Procurement Process" alt="Master Data in Procurement Process" src="/service/media/S4C10_32_en-US_media/S4C10_32_en-US_images/MasterData_Image.png" tabindex="0"><div class="imageCaption"></div><p tabindex="0">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.</p><p tabindex="0">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 <a target="_blank" href="https://support.sap.com/content/dam/SAAP/Sol_Pack/Library/General/1I5_S4CLD2208_EN_XX.htm">SAP Best Practices - Create Your Own Master Data</a>.</p></div>

Master Data in the Procurement Process

Implementing SAP S/4HANA Cloud Public Edition, Sourcing and Procurement

Learn how master data is stored and used in transactions using the example of a purchase order. Understand the importance of business partner master data, product master data, and purchasing info record.<br><br># This description was auto-generated #

Master Data in Sourcing and Procurement

In this video, you will learn how master data is stored and used in transactions using the example of a purchase order. Imagine you are a purchaser for a confectionery manufacturer and must order ingredients for a new type of cookie. With the information from production planning, you know how much of a specific raw material you need to order. When you create your purchase order to buy this material, you just enter the material and your preferred supplier. By default, all the required data relevant to this material and the supplier are automatically transferred from existing master data records to the purchase order. So, what is meant by master data? Master data consists of fundamental data records that are stored centrally for a long period of time and are used and processed on a cross-application basis. The master data that are crucial for the creation of a purchase order are business partner master data, product master data, and purchasing info record. Let's look at the business partner master data, which is used for suppliers. In SAP S4 HANA Cloud, a business partner is a party with whom your organization does business, and a supplier is a business partner that delivers and sells goods and services to your organization. A business partner can be a supplier and a customer at the same time if, for example, your supplier also buys goods from you. The purpose behind the business partner concept is to manage all information about a party in one place and avoid data redundancy. A supplier master holds information about the supplier such as their name, address, bank details, tax details, and billing preferences. The next master data record that we look at is product master data. The product master data record contains information about all the physical materials that are procured, produced, stored, and sold. It's also used to manage information about services, for instance, for buying and selling services and hours. The material master holds information such as unique material number, material name, type, unit of measure, descriptions, weight, and dimensions. Finally, there's the purchasing info record. A purchasing info record contains information specific to a material and the supplier providing the material. The purchasing info record holds information such as the price charged by the supplier, their standard order quantity, and tolerances for over-delivery and under-delivery. When you create a purchase order, the system attempts to find a price for the material or the product to be procured. So, when you create the purchase order for your raw material with your preferred supplier, the system searches for a purchasing info record for the supplier material combination at the purchasing organization plant level. If there is no purchasing info record at the purchasing organization plant level, it searches at the purchasing organization level. If there is none at this level either, you must manually enter the price from your supplier for this raw material into your purchase order. Now, you should be able to explain the master data that are important for the creation of purchase orders.