School of Business & Accountancy, ITCS

Assignment
Topic: The Master Data in SAP
2nd Semester, SY 2019-2020
IS AUDIT

Name: Rivera, Andrei Nicole M. Section: BA-41 Time: 12:00 to 3:00 PM Score:_________

1. Kindly explain briefly about your understanding of Master Data in SAP. 5 points
Master Data in SAP refers to the key information that describes your customers, vendors,
and leads as well as items that your company buys and sells. The data that is created centrally, and is
valid for all applications. It remains constant over time but we need to update it on a regular basis.
One example is the vendor which is a type of master data that is used for creating purchase orders or
contracts.

2. What is vendor master data? 5 points

Vendor Master Data is the enterprise main source of vendor-specific data. It includes
information on vendors from which a company can procure, or can sell. A vendor master record contains
information such as vendor's name, address, etc. Data in a vendor master record is divided into three
categories:

General Data − General data is maintained at client level and it is valid for all organizational
levels.
Accounting Data − Accounting data is maintained at company level and it is valid for all plants
belonging to that company.

Purchasing Data − Purchasing data is maintained at purchasing organization level.

3. Why is vendor master data important? 5 points

Vendor master data management empower organisations to manage 100% of their vendors
and gain complete visibility. It helps to guarantee the quality of the data, and removes the risk of storing
inaccurate or inconsistent information. Vendor master also records contain important data on your
vendors. ou can also store data in the vendor master record that applies to certain specific organizational
levels within your enterprise.

4. Why do you think company’s organization structure is relevant in auditing master data? 5
points
One of the most important steps in understanding master data is getting to know the
terminology. Master data cannot be effective without proper data governance. If no one is accountable
for data quality, then there is no place for escalating issues or setting data standards and monitoring data
quality. Company’s organization structure is relevant in auditing master data in a way that they both
added value to the organization.

5. Speaking of company’s organization structure, one of which is customer data or

information. Please explain the role of Accounting Section (handling Accounts Receivable),
Sales or Marketing Department, and Credit and Collection Department? 5 points
First, the key role of Accounting Section that handles Accounts Receivable is to ensure their
company receives payments for goods and services, and records these transactions accordingly. An
Accounts Receivable job description will include securing revenue by verifying and posting receipts,
and resolving any discrepancies. Second, the role of Accounting Section that handles Sales or
Marketing Department is for managing and developing the sales of a business. The accounting
department must work closely with the marketing department to monitor trends in the business as well
as manage the efficiency of sales promotions initiated by the marketing company. Lastly, the role of
Accounting Section that handles Credit and Collection Department is constantly interacting with the
company's customer base. This provides those who deal with customers to identify customer needs. A
competent credit and collections department is an assist to the finance function.