What is FI master data? (Excerpt from First Steps in SAP Financial Accounting (FI))

What is FI master data? Get clarity in this excerpt from Ann Cacciottolli’s recent SAP book release First Steps in SAP Financial Accounting (FI).

One fine morning I arrive at my local bank to deposit a check that I have received. Unfortunately, I have not remembered to bring a deposit slip, nor can I remember my account number. The teller must log into the bank system and find my account number. The record in the bank system that contains my name, address, other personal information, and my account number is known as master data. The master data represents (relatively) static information about me, but does not in any way reflect activity that has occurred or will occur in my account. When the teller processes my deposit, additional data is recorded in the bank system — transaction data. Without my master data, the deposit transaction could not be entered in the bank system. However, my master data may exist in the bank system for any period of time, even if there are never any transactions entered. Therefore, you can think of master data as descriptive information and of transaction data as activity information. Many master data objects are required to post a general ledger transaction depending on the specific configuration of the SAP environment; the most common object required is a general ledger (or G/L) account.

Keep reading and solidify your understanding of the fundamental aspects of SAP Financials (SAP FI). In this book, individuals new to SAP FI and an accounting environment will learn the most important processes and functions for navigating in SAP FI. Learn how to record basic financial transactions, execute common SAP transaction codes, and run standard SAP financial reports (Record to Report). Walk through General Ledger (FI-GL), Accounts Receivable (FI-AR), and Accounts Payable (FI-AP) functionality. Check your understanding of key concepts by completing the included hands-on exercises.

Ann Cacciottoli is a Specialist Senior with Deloitte, the world’s largest professional services firm. She has extensive experience delivering SAP solutions, with a focus on SAP Financials and Reporting. Her client-service work has taken her to Europe, Asia, and throughout the United States. Ann is passionate about sharing her knowledge and experience with those new to SAP.