Q). What is master data?

Answer:

Master data in SAP R/3 represents the basic component of a procedure which is used by the system. Master data thus represents one common record which is accessed by different procedures. This ensures data integrity throughout the process. To take an example, a vendor master record may be referenced by more than one module. The FI module may access the vendor master record to look at the payment terms for a particular vendor, on the other hand the MM module may look at the same payment terms for a purchase document for the same vendor.