Why Master and Non-Master Data?

Basic objective of accounting system is to record input in the form of transactions and generate output in the form of reports.For example a transaction of capital introduction in business in cash 1,00,000 is recorded as.

Basic objective of accounting system is to record input in the form of transactions and generate output in the form of reports.

For example a transaction of capital introduction in business in cash 1,00,000 is recorded as;

Points to be noted about master data;

I. Master data is generally not typed by the user, it is selected from the available list.
Example: Debit Ledger name.

II. Master data entry is usually done less frequently say once a year or when there is a need to update.
Example: — Agreed prices are updated in the Vendor master when new prices are negotiated.

III. While inputting the information, user is forced to select master data from the available list just to avoid confusion while preparing reports.
Example: — Same ledger name may be written differently.

IV. Master data is selected from the available list of masters (e.g. Ledgers) to maintain standardization as we need to collect all the transactions relating to one master data at one place for reporting.

Points to be noted about non master data:

I. Non-master data is typed by the user and not selected from available list as it is a non-permanent and it keeps on changing again and again.

II. Sometimes transactional data could also be selected from a drop down list of inputs available to the user.

Example: When a GRN (Goods receipt note) is created by the Stores/Warehouse personnel, they might only select the open purchase orders available in the system and input actual quantities received. In this case, many fields required to complete the transaction is pre-filled by the system and the user is not allowed to edit those fields.

Originally published at http://waytopinnacle1.wordpress.com on May 15, 2021.