What’s diff btw master data and transaction data?
The main difference between master data and transaction data is that master data is the data that represents people, places, or things that are related to an organization, while transaction data is the data used by master data. What’s diff btw master data and transaction data?
Data is important to every business organization. There are several categories of data; Master data and transaction data are two of them. Both types of data have unique properties. Mater data is static data while transaction data is dynamic data. Managing master data and transaction data is important to modern, complex organizations.
Key Areas Covered
1. What is Master Data
– Definition, Functionality
2. What is transaction data?
– Definition, Functionality
3. What is the difference between master data and transaction data?
– Comparison of key differences
What is Master Data
Master data is the data that represents people, places or things related to the organization. For example, let’s assume a scenario where a customer buys a product from a store. This involves customer, product and employee data. All this information is considered as master data.
The master data does not change, it is mostly consistent. A customer’s details are the same whether they check out of the company’s online shopping website or check out at the cash register. It does not change.
But, master data can have consistency issues. When the customer buys products from the store, he can use a loyalty card. When you buy products online, you do not need to use the loyalty card. So even the client is the same, he has two profiles. Therefore, it can be difficult for the retailer to assess the customer.
What is transaction data? What’s diff btw master data and transaction data?
The transaction data is used by the master data. Assume the above scenario of purchasing a product. Data such as price, discount, and payment method are considered transition data. Transaction data is always changing. For example, the price of purchased items may be $100 on one day and $200 on another day. In other words, transaction data is highly volatile.
In transaction data, it is difficult to find the amount of data and find ways to decentralize it. For example, there are many transactions that happen daily. Even if it is difficult, it is necessary to collect them to identify the performance of the organization and make future decisions. Therefore, different departments in the organization store and manage their own data. This can cause inconsistency in logic.
Difference Between Master Data and Transaction Data
Master data represents the business objects that contain the most valuable and agreed-upon information that is shared across an organization. Transaction data is data that is periodically updated asynchronously over time as new information becomes available.
Master data is data that represents people, places, or things related to an organization. Transaction data is the data that is used by the master data. Thus, this is the main difference between master data and transaction data.
Customer details, product details, employee details are some examples of master data. Price, discount, payment method are some examples of transaction data.
The master data does not change, so it is not volatile. Since transaction data changes frequently, it is highly volatile. Therefore, this is an important difference between master data and transaction data.
issues What’s diff btw master data and transaction data?
Another difference between master data and transaction data is that master data may have consistency related issues while transaction data may have logic and quantity related issues.
The basic difference between master data and transaction data is that master data represents people, places, or things related to an organization while transaction data is the data used by master data.