Last Updated on January 10, 2023 by Pradeep
Master Data in SAP FICO – Introduction
There are two types of Data available in SAP. Master Data & Transactional Data. Master Data is the base for any posting of Transactions. In SAP, different dedicated tables are available for Master Data. Here we have four kinds of Master Data in SAP FICO.
This Master Data doesn’t work just for SAP FICO but also for SAP S4HANA Finance. The basic concept is the same in FICO and S4HANA Finance; the difference is just the technology. Even in Migration from ECC to HANA, basic concepts remain the same.
Kinds of Master Data in SAP FICO
- Material Master Data
- GL Master Data
- Customer Master Data
- Vendor Master Data
Let’s see it in detail.
Material Master Data in SAP FICO
In SAP, Material Master means certain goods or services that are objects of Production, Sales, Purchasing, Inventory, etc. Master Data influences all the processing of Materials.
We use Material Type throughout the system for multiple purposes. For Example, we can define Raw Material under Material Type “ROH”, Semi-Finished Goods “HALB”, and Finished Goods “FERT”. Likewise, the Material Type controls every Material.
We can define material type by Transaction Code – OMS2.
Material Master Views
We can control Material Views under Material Type also. For Example, if we want to create Finished stock under material type “FERT” and don’t want to do purchase-based views for that Material, we can control them under material type “FERT”.
Also, we can set price control “Standard “or “Moving Average “under material type.
General Ledger Master Data in SAP FICO
GL Master record in SAP controls the posting of an accounting transaction. Before posting a GL entry, we have to create the master record.
We can divide GL Master into two segments. Chart of Account segment and company code segment.
Chart of Account segment
The Chart of Accounts segment, also known as General Data in GL master, contains data valid for multiple company codes, such as account number, regardless of whether the account is a balance sheet or a profit and loss account. GL account group controls the field to display at company code specific area & group chart of accounts etc.
Company Code Segment
Company Code specific area in general ledger master contains the data that may vary from one company code to another. Such as the currency the account may post, balances only in Local currency, tax category, posting without tax permitted, etc.
Before creating GL Master Data, we must create a GL account Group. The system uses the account group to determine a valid number interval for GL Master and Field settings control in the company code.
Further, the field status maintained at the account group determines whether a field is Required | Optional | Display or Hidden.
Different Functions of GL Master Data in SAP FICO
- Create GL Master
- Edit GL Master
- Display GL Master
- Block/Unblock GL Master
We can use Transaction Code – FS00 for everything above.
Necessary Fields to remember in GL Master
Balance only in Local Currency
Suppose we set this indicator for goods and invoices received account. In that case, we automatically post the difference between the invoice and the number of goods received in local currencies. We set this indicator for clearing accounts.
Likewise, if the indicator is on the system, it will clear this account without passing any entry for the exchange rate difference.
But if it is not, the system will pass an extra entry for the difference in the exchange rate.
Tax Category
We set this indicator when the General Ledger account master is subject to tax on sales/purchases.
Reconciliation Account Type
When we post a customer or Vendor account in sub-ledgers, the system post it to the respective reconciliation account. The system can post this account automatically only.
Open Item Management
We should select this tab if we want to check any account for a particular business transaction. Such as an offsetting posting. Example. GR/IR clearing account, Bank Clearing account, etc.
Line Item Display
If we set this indicator, the system will display all items posted to the account which are not yet archived. However, now SAP has removed this option from Manual selection and has automated it in S4 HANA Finance – GL Master.
GL Master Data: Watch Related Video
Customer Master Data in SAP FICO
Master Data includes all the details regarding the customers we need to maintain in the system and use as and when required.
We can classify Customer Master Data as follows:
- SD Customer
- FI customer
SD Customer
If we implement the Sales & Distribution module, we can create a customer for all roles. This process is known as Customer made centrally. We can use the Transaction Code – XD01. Any customer master created as an SD customer; we create:-
Sales Order → Outbound Delivery → Billing Document (Sales Invoice) and from Finance the only collection.
FI Customer
FI customers are those customers for whom we want to record sales, those customers who are not regular ones and are not part of the usual sales. For Example, we have one old piece of Machinery which we wish to sell. For this, we create a customer to sell that old Machinery. Further, here we will record only the financial transactions.
Account Groups in SAP Customer Master
We use Account groups in Customer Master Data for high-level classification of customers. It helps you to classify your customers based on different trades, sectors, and lines of Business.
Also, it helps to control the field settings of Customer Master Data, which fields we require, which are optional and which we can suppress. Accounts Groups ensure the user does not face problems during Customer creation.
For Example, We may require a VAT field for a regular customer so that the system does not allow the user to bypass the particular field until and unless it populates.
Vendor Master Data in SAP FICO
We use the vendor master record in Material Management and also in FI. We can have both departments maintain their information using their respective transaction codes. Like we can use FK01 Transaction Code for FI -vendor Master data creation and MK01 for MM -Master Data creation. Also, we can create vendor master data centrally by using Transaction.
Further, the system assigns a unique number to each vendor, internal or external.
If the system allocates a number to vendor master data, we call it an internal number assignment.
However, if the user assigns the vendor number while creating a vendor, we call it the external number assignment.
We categorize each Vendor Master into three levels:
- Client
- Company Code
- Purchasing Organization
The complete general data of vendors is available at this level which all company codes and purchase organisations in a particular client can access.
This level includes:
- Vendor Name
- Address
- Bank Details
- Country etc
Company Code Segment
All the information maintained at the SAP vendor-master data level is relevant only to that particular company code. This level includes fields like,
- Previous account number
- Payment Terms
- Withholding Tax
Purchase Organization Segment
This level of Vendor master contains all the details which are relevant for the purchasing department. The MM module uses this information majorly.
Conclusion
Master Data in SAP FICO has a significant role. Not just in FI but also in MM. As explained above, the coverage of 4 key segments makes its impact relevant. Further, every SAP FICO consultant must have good hands-on on mastering data.
Visit: SAP S/4HANA Finance Training
Though Master Data is a vast concept, here in this article, I have explained its role in sap FICO. In future topics, I’ll add a detailed post on the broader subject of Master Data that would help you to have an enhanced understanding and knowledge.
