Glossary

What is Master Data Managament in SAP?

What does Master Data Management mean in SAP?

Master Data Management (MDM) in SAP refers to the practices, processes, and technologies used to create, standardize, and maintain critical business data within the SAP ERP landscape. Master data includes key records such as materials, vendors, customers, assets, and equipment.

For asset-intensive companies, poor-quality master data can lead to duplicate entries, inaccurate reporting, procurement inefficiencies, and costly maintenance errors. SAP’s MDM framework ensures that this data is accurate, consistent, and reliable across all modules—from finance and procurement to supply chain and plant maintenance.

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Key elements of Master Data Management in SAP

  • Material Master Data – Central repository for spare parts and equipment, including descriptions, classifications, and technical attributes.
  • Vendor and Customer Data – Consistent supplier and customer information for streamlined procurement and invoicing.
  • Asset and Equipment Records – Structured data for maintenance and reliability management.
  • Data Governance Rules – Policies for ownership, approval, and ongoing quality checks.
  • Integration with ERP Modules – Ensuring all SAP modules use the same standardized dataset.

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Why Master Data Management in SAP is critical

Effective Master Data Management in SAP provides the foundation for ERP migrations, digital transformation, and operational efficiency. Without it, organizations face duplicate materials, inconsistent vendor codes, and errors in financial and operational reporting.

By implementing robust MDM processes, companies can:

  • Improve accuracy of spare parts and MRO data.
  • Reduce duplicate records across plants and business units.
  • Streamline ERP migration projects (e.g., SAP ECC to SAP S/4HANA).
  • Enable predictive maintenance and advanced analytics.

Sharecat Data Services supports clients in cleansing, standardising, and enriching SAP Master Data—particularly for spare parts and MRO—so that ERP and CMMS systems are built on a foundation of clean, reliable, and business-ready data.

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