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Explaining the Difference Between Master Data and Transaction Data in SAP BW

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The difference between master data and transaction data is fundamental in SAP BW. Master data refers to the core, non-transactional data that provides context and background information. Examples include customer names, product descriptions, and employee details. Master data is static and rarely changes over time.

On the other hand, transaction data captures the actual business activities or events that occur within an organization. This data is dynamic, changing frequently as transactions are processed. Examples of transaction data include sales orders, purchase orders, and invoice details.

**Focus keyword:** SAP BW master data vs transaction data

In SAP BW, master data is used for providing a reference point and maintaining consistency across reports and analyses. It serves as the foundation for analytical processes and ensures accurate reporting. Transaction data, on the other hand, reflects the day-to-day operations and is essential for tracking business activities and performance.

Understanding the distinction between master data and transaction data is crucial for structuring data models and creating meaningful reports in SAP BW.