4/5/22, 9:27 AM Kinds of Master Data in SAP FICO - An introduction | Skillstek

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Last Updated on January 1, 2022 by Pradeep Master Data in SAP FICO

Published by Pradeep on June 18, 2019

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. Below are the four kinds of Master Data available in SAP FICO.

This Master Data doesn’t work just for FICO, but also for SAP S4HANA Finance. The basic

concept is the same in both FICO and S4HANA Finance, the difference is just of the technology.

Since the Migration of FICO from ECC to HANA, basic concepts still remain the same.


Kinds of Master Data in SAP FICO

1. Material Master Data
2. GL Master Data
3. Customer Master Data
4. Vendor Master Data

Let’s see in detail.

Material Master Data

In SAP Material Master means certain goods or services that are an object of Production, Sales,
Purchasing, Inventory, etc. All the processing of Materials is influenced by the Material Master.
Every Material is controlled by “material type” which is used throughout the system for multiple
purposes. For example, Raw Material can be defined under Material Type “ ROH”, Semi-
Finished Goods “ HALB” Finished Goods “ FERT”. We can define material type by Transaction
Code – OMS2.

Material Master Views

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We can control Material Views under Material Type also. For example, if we want to create
Finished stock under material type “FERT” and we 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

GL Master record in SAP controls the posting of an accounting transaction. Before posting a GL
entry, we have to create the master record.

GL Master is divided 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 that is
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 be displayed

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 to which account may post, balances only in
Local currency, tax category, posting without tax permitted, etc.

Before creating GL Master Data, we have to 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
company code.

The field status maintained at the account group determines whether a  field is Required |
Optional | Display or Hidden.

Different Function of GL Master

1. Create GL Master
2. Edit GL Master
3. Display GL Master
4. Block/Unblock GL Master

We can use Transaction Code – FS00 for everything above.

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y g

Important Fields to remember in GL Master

Balance only in Local Currency

We set this indicator for clearing accounts. If we have set this indicator for goods and invoices
received account then the difference of the invoice amount and the goods received amount is
posted automatically in local currencies.

If the indicator is on the system, it will clear this account without passing any entry for the
exchange rate difference. If it is not selected, then the system will pass extra entry for exchange
rate difference 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 automatically posts to
the respective reconciliation account. This account can only be posted automatically by the

system.

Open Item Management

If we want to check any account for a particular business transaction, whether an offsetting
posting has already been made then this tab should be selected. Example. GR/IR clearing
account, Bank Clearing account, etc.

Line Item Display

If this indicator is set, the system will display all items posted to the account that have not yet
been archived. However, this option is now removed from Manual selection and is made
automated in S4 HANA Finance – GL Master.

Customer Master Data in SAP

Master Data includes all the details regarding the customers which are to be maintained into the
system and are used as and when required.

Customer Master Data can be classified as:

1. SD Customer
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2. FI customer

SD Customer
If the Sales & Distribution module is implemented, we can create a customer will all roles also.
This is known as Customer created centrally. We can use the Transaction Code – XD01. Any
customer master created as SD customer, we can create:-

Sales Order → Outbound Delivery → Billing Document (Sales Invoice) and from Finance the
only collection.

FI Customer
FI customers are those customers where we want to record sales those customers who are not
regular ones and are not part of our regular sales. For Example, we have one old machinery
which we wish to sell. For this, we create a customer to sell that old Machinery and here we will

record only the financial transactions.


Account Groups in SAP Customer Master

Accounts groups in Customer Master Data are used for high-level classification of customers. It

helps you to classify your customers based on different trades, sectors, lines of Business. Also, it
helps to control the field settings of Customer Master Data. As like which fields are required,
which are optional and which fields can be suppressed, so that the user at the time of Customer
creation does not face problems.

For example, the VAT field should be required for a regular customer, so that the system does
not let the user bypass the particular field until and unless it is populated.

Vendor Master Data in SAP

The vendor master record is used not only in Material Management but also in FI. We can have
both departments maintain their own 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.

Each vendor is assigned a unique number, that can be internal or external. If the system will
allocate a number to vendor master data then it is known as internal number assignment. If the
user will assign the vendor number while creating a vendor, it is known as the external number
assignment.
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Each Vendor Master is categorized into three levels:

1. Client
2. Company Code
3. Purchasing Organisation

The complete general data of vendors is available at this level which can be accessed by all
company codes and purchase organizations in a particular client.

This level includes:

Vendor Name
Address
Bank Details
Country etc

Company Code Segment

All the information maintained at this level of SAP vendor master data is relevant only to that

particular company code. This level includes fields like,

Previous account number
 Payment Terms
Withholding Tax


Purchase Organisation Segment

This level of Vendor master contains all the details which are relevant for the purchasing
department. The MM module will utilize this information.

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