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What is the difference between Customizing Data, Master
Data and Transactional data?

Answer Posted / uma mb

Master Data: Under this category we would group data more
or less static once entered. Examples would be Customer
Master, Supplier Master, Employee Master, Department
Master, Accounts (Code) Master etc. This kind of data is
referenced in operations to pick up a name, description or
details like basic salary which do not change very often.
Data is said to be more or less static and classified
under 'Master Data'.

Transaction Data: When compared to Master Data, activity in
a transaction data set is very high. Daily
operations/transactions like add / change / delete act
on 'Transaction Data' and make it a very dynamic set.
Examples would be customer order, stocks, purchase order,
invoices, receivables, payables.

Customizing Data: When a standard business software
application (examples in SAP would be SD, MM etc) is made,
very often, it will be required to be tailored to suit a
particular business organization's need. To give an
example, there may be an application that can suit a
manufacturing organization, a purely dealership
organization, or an organization that manufactures as well
as simply acts as a dealer buying (from suppliers) and
selling items (to its customers). When installing such an
application, one has to indicate to the application, what
sort of company is it - a manufacturer, a dealer or both.
We are said to be customizing the application data based on
the needs/nature/context of the organization where it is
being installed. Now based on this customization, many
other business processes inside this application would be
turned on (active) or off (inactive) as appropriate.

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