(4)Discuss types of Master Data in financial & accounting systems.

Answer: Master data is relatively permanent data that is not expected to change again and again.

Following are some of the master data in financial & accounting systems:

(1)Accounting Master Data:

• This includes names of various ledgers, voucher types, cost centres etc.
• E.g. various ledgers like capital account, sales, purchase, expenses and income ledgers are created once and not expected to change again and again.

(2)Inventory Master Data:

• This includes inventory related master data like stock items, storage units, inventory vouchers type etc.
• For business of consumable goods stock items can be television, air-Conditioner, fridge etc.

(3)Payroll Master Data:

• This includes employees related master data like name of employees, group of employees, salary structure, payment heads etc.
• These data are not expected to change frequently. E.g. Employee created in the system will remain valid for relatively longer period of time.

(4)Statutory Master Data:

• This includes master data related to various statute/law. This data shall be relatively permanent. 
• E.g. Rate of Goods and Service Tax (GST), Nature of Payments for TDS etc. In case of change in tax rates, forms, categories, we need to update/change our master data.

All business process modules must use common master data.