Jul 25, 20213 min read

SAP Master Data Governance

Updated: Aug 18, 2021

SAP Master Data Governance (MDG)

What is SAP MDG?

SAP Master Data Governance, Consolidate and centrally govern the master data lifecycle to increase the quality and consistency of information across your organization.

The SAP Master Data Governance application consolidates and manages master data across the organization. A s the master data management layer of SAP’s Business technology Platform. It provides a unified, trusted view of master data master data across domains.

Enterprise Master Data Governance tool increase data accuracy, and reduce total cost of ownership with a single solution facilitates consolidation and central governance.

What is Master Data?

Master data is the core data that is used as a base for any transaction. If you are producing, transferring stock, selling, purchasing, doing physical inventory, whatever your activity maybe. It requires certain master data to be maintained.

Master data contains the information about business transactions are recorded and executed by the system, following are the main and critical ‘Master Data’ objects in SAP.

Material Master Data Material master data (often referred to simply as the “material master” or “item master”) contains descriptions of materials that an enterprise procures, produces, and keeps in stock.

Customer Master Data Customer master data is the data you require to conduct business relationship with your customers. It includes address data, contact data, terms of payment. Customer is a type of master data that is used for creating sales order or contracts.

Vendor Master Data Vendor Master Data (often referred to simple as the “Vendor” or “Supplier”) is the enterprise main source of vendor specific data. It includes information on vendor’s name, address, tax etc. Vendor is a type of master data that is used for creating purchase or orders or contracts.

Central Governance or consolidation for consistent master Data

Enables centralized governance, compliance and transparency of master data during creation and change through integrated staging, approval and central audit trail
Deliveries consistent definition, authorization, and replication of key master entities
Eliminates error-prone manual maintenance processes for master data in multiple systems
Supports consolidation of decentralized master data in any enterprise system landscape to create best records and key mapping between duplicates.
Optionally combines consolidation with central governance for sustained master data qualities

Quality Management

Define master data quality rules, striving for consistent usage across all points of data entry, and enabling data quality monitoring, analysis and remediation
Observe and investigate master data management process quality to enable optimization

Integration and reuse

Native integration and openness to integrate 3rd party services
Reuse of SAP’s data models, existing business logic, and configuration for data validation
Open application to manage your own master data flexibly also for non-SAP environment

Typical Business Challenges

Consistent Master Data helping the business avoid process disruptions unreliable analytics

1) Optimized Asset Utilization

Ability to use technical assets to capacity
High Product quality with well maintained production systems
Minimized safety risks for maintenance staff and operators

2) Readiness for Change

Readiness to cope with information needs from BiG Data, IoT.
Ability to Exchange Master Data with Business Partner
Ability to respond Mobile needs

3) Finance Effectiveness

On-time group closes
Accurate IT resource planning
Business Flexibility

4) Procurement Decision

Transparent picture of suppliers and products
Cost savings due to fact based suppliers selection and rationalization

5) Efficient Supply Chain Management

Enable real time collaboration with partners in supply chain and product development
Faster throughput of higher volumes through supply chain to the end customer

6) Sales Effectiveness