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SAP MDG - Master Data Governance
SAP MDG (SAP Master Data Governance) sets who may create or change business partner, material and finance master data, and under which rules. Every new record or change is tied to a change request and reaches connected systems only after checks, approval and activation.
Process
From change request to replication in SAP MDG
Maintenance work is bundled in a change request linked to a workflow; when responsibilities change, you update a rule, not the workflow.
- 01Change requestBUS2250 · request type
Create, change, block
- 02Validation, derivationBRFplus · DQM rule
Checked before activation
- 03Approval stepsBRFplus decision table
Steps and agents in rules
- 04ActivationEdition in MDG-F
Finance data in two steps
- 05ReplicationData Replication Framework
Filtered per target system
Comparison
Where SAP MDG runs
The choice depends on how many systems receive the data and which cloud model your ERP runs on.
Co-deployment
In the transactional S/4HANA
- No replication latency
- No cross-system monitoring
- No extra integration to build
- Also on several local systems
Hub
System for master data only
- Fresh start with cleansed data
- Independent of others' maintenance
- No extra load on operational systems
- Replication via DRF, key mapping
Public edition
Inside S/4HANA Cloud, SaaS
- Business partner and product data
- Central governance for product in 2608
- MDG licence on top of S/4HANA rights
- Approver cannot edit the data
Scope
What we set up in an SAP MDG implementation
Central governance and approvals
Request types and approval steps in MDGIMG; rule-based workflow in classic mode, process templates in cloud-ready mode.
Validation and derivation rules
Mandatory-field and format rules; data quality management evaluates records against them and tracks the score.
Consolidation and best record
Records from several sources are matched, and survivorship rules pick the best record for each match group.
Replication and key mapping
Distribution through the Data Replication Framework; in a hub, local numbers are mapped to the central record.
Finance master data in editions
Cost and profit center changes are collected in an edition and take their valid-from date from it.
Move to cloud-ready mode
Business partner governance moved from classic to cloud-ready mode, with BAdIs and old BRF+ rules rebuilt as DQM rules.
Current state
S/4HANA conversion, cloud-ready mode, licensing
- A system without CVI in place cannot be converted to S/4HANA (SAP Note 2265093). Classic mode drops the ERP-like screens: BS_OVP_CU replaces BS_OVP_CU_CL, BS_OVP_SP replaces BS_OVP_SP_VL.
- SAP HANA-based analytics for MDG does not exist in S/4HANA; the content is no longer generated after conversion, so process reports built on it need a replacement.
- Cloud-ready mode arrived with S/4HANA 2023 and covers business partners only, customers and suppliers included. Material and finance stay in classic mode; both modes can run side by side.
- SAP is discontinuing the BTP-based SAP MDG, cloud edition: subscriptions run until contract end, renewals are not possible and the free tier has been withdrawn.
Localization
Tax IDs and the e-invoice user list
VKN and TCKN format
In GİB's user list a tax number (VKN) has 10 digits and a personal ID (TCKN) has 11. A validation rule can check that format while the request is still open.
Changes in the e-invoice list
GİB's user list publishes the new VKN or TCKN after a change of legal form and the new title after a name change. A check against business partners is built separately.
E-InvoiceTax office field
In Türkiye, electronic document exchange needs the customer's tax office. It is kept on the business partner under category TR1 and can be made mandatory in the request.
From the field
What gets missed in SAP MDG implementations
- Old rules stop working in cloud-ready mode. In this mode only DQM rules check and derive data inside a process; BAdIs and old BRF+ rules are not called. A process opened in cloud-ready mode cannot be finished in classic mode and has to be re-created.
- The search method is a licence decision. Embedded Search comes with the MDG licence but indexes one system. Enterprise Search, which searches across systems, is licensed separately, and that difference belongs in the hub decision.
- No DEBMAS/CREMAS between S/4HANA systems. Because the business partner leads, SAP does not recommend the DEBMAS/CREMAS IDocs between S/4HANA systems; business partner SOAP services are the route. IDocs fit only sources without business partners.
- Product mode switches off the old apps. In the public edition, turning on MDC_PRODUCT_GOVERNANCE disables the previous consolidation and mass processing apps, and new-mode processes cannot go back. Systems using only 1RM keep it off.
FAQ
Common questions about SAP MDG
What is SAP MDG, and which master data does it cover?
SAP MDG (SAP Master Data Governance) covers central creation and change of master data, consolidation of scattered records and data quality measured against rules. In S/4HANA, central governance covers business partners, materials, finance objects and custom objects. Extensions for equipment, functional locations and retail articles are add-ons outside the S/4HANA shipment.
Co-deployment or a separate hub?
With co-deployment, MDG runs in the transactional S/4HANA system: no replication latency, cross-system monitoring or extra integration. A hub is a separate system for master data only; it verifies data and replicates it to the source and other systems, independent of their maintenance cycles. Central Finance can use MDG master data and key mapping to keep postings aligned.
Does SAP MDG need its own licence?
Yes. SAP's S/4HANA simplification list states that the MDG-S (suppliers) licence is not part of the S/4HANA licence. SAP S/4HANA Cloud Public Edition (new name: SAP Cloud ERP) needs an MDG licence on top of the S/4HANA usage right. The exact licence items depend on the product and contract and are settled with SAP.
When should SAP MDG come in during an S/4HANA move?
The conversion depends on the business partner move, not on MDG: a system without CVI in place is declined. SAP recommends MDG consolidation during preparation to build a non-redundant master data repository, and central governance before or at go-live so the cleaned data stays clean.
How does cloud-ready mode differ from classic mode?
Cloud-ready mode came with S/4HANA 2023 and runs central governance, consolidation and data quality in one framework with new Fiori apps. Today it covers the business partner domain only, while material and finance stay in classic mode. Both modes can run in parallel, with different UIs and workflow inboxes during that time.
Does SAP Reltio replace SAP MDG?
No. In SAP's positioning, MDG governs master data at the SAP source as it is created, through workflow, validation and approval. SAP Reltio unifies records from SAP and non-SAP sources and resolves duplicates. Both sit in SAP Business Data Cloud, while the BTP-based SAP MDG, cloud edition is being discontinued.
Sources12 sourcesSAP Learning, SAP Community, SAP Help Portal +2
SAP Learning
- Describing Key Capabilities (Introducing SAP Master Data Governance) learning.sap.com (opens in a new tab)
- Describing Deployment Options and Landscapes (Introducing SAP Master Data Governance) learning.sap.com (opens in a new tab)
- Introducing Central Governance of Master Data (Introducing SAP Master Data Governance) learning.sap.com (opens in a new tab)
- Describing Data Domains and Extensibility Options (Introducing SAP Master Data Governance) learning.sap.com (opens in a new tab)
- Explaining Master Data Governance (Introducing SAP Master Data Governance) learning.sap.com (opens in a new tab)
- Explaining Master Data Governance (MDG) Customizing and Setup (Master Data Governance on SAP S/4HANA) learning.sap.com (opens in a new tab)
SAP Community
SAP Help Portal
SAP
GİB
SAP Consulting
Start your master data work in the right domain
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