Hello Everyone,
In many common discussions among us, especially within our data colleagues, most repeated discussion that takes into place “Should Master Data be loaded into S/4HANA or MDG?”
Let’s explore today this topic and solution too.
we should always know how to frame a question about the topic.
Let’s take a step back and reframe this question.
Rather than approaching it as a binary choice, we should first evaluate key aspects like:
Landscape and Architecture:
Is MDG deployed as a hub system or co-deployed with S/4HANA?Is the organization already relying on MDG for master data governance?
Business Requirements:
Are there critical validation, approval, and governance processes in place?Is the data required urgently for transactional purposes?
Only after assessing these factors can, we effectively determine the right approach.
Rather than asking such a blunt question, where to load either to S4Hana or MDG, we should 1st know the landscape, architecture and business requirements and then only we are eligible to decide or discuss about the solution either to load in MDG or S4Hana.
let’s discuss the scenarios where to load in S4Hana and MDG.
Instead of asking “Where to load master data?”, the better question is:
“What are the business needs and system requirements that should guide our decision?”
By addressing this question with the context of the architecture and use case, we can ensure our approach is tailored, efficient, and aligned with business goals.
When you have both SAP S/4HANA and SAP MDG systems in your landscape, deciding where to load master data first depends on the data governance requirements and the system’s role in your architecture. Here’s how to determine the approach:
1. Loading Data to S/4HANA First
In some scenarios, master data needs to be loaded directly into S/4HANA without first passing through MDG:
Scenarios to Load Data to S/4HANA First:
Legacy System Migration:
If you’re migrating large volumes of master data from a legacy system to S/4HANA during an implementation, and MDG isn’t fully configured yet.After data is loaded into S/4HANA, MDG can be used for governance and future updates.
Transactional Urgency:
If the master data is needed immediately for transactional processing (e.g., posting invoices, creating purchase orders) and there’s no time for governance workflows in MDG.Example: A new supplier needs to be added urgently to process a purchase order.
Test/Development Environments:
During testing phases, master data might be loaded into S/4HANA directly to validate configurations, without involving MDG governance workflows.
Process for Syncing with MDG:
Once data is in S/4HANA, MDG can import this data using initial load mechanisms (e.g., MDG File Upload Framework or standard APIs).Afterward, MDG governs and manages future changes to the data.
2. Loading Data to MDG First
For most scenarios, master data should be loaded into MDG first, as it is the system responsible for governance, validation, and replication.
Scenarios to Load Data to MDG First:
Governance and Validation Requirements:
When master data must pass through strict validation rules, workflows, and approval processes before becoming operational in S/4HANA.Example: Adding new customers or materials that require input and approval from multiple stakeholders (e.g., sales, finance, logistics).
Centralized Master Data Management:
If MDG is deployed as a central hub system to govern master data for multiple systems (e.g., S/4HANA and non-SAP systems).Data is created/updated in MDG and then replicated to all target systems, including S/4HANA.
Harmonization Post-Migration:
If master data from multiple legacy systems needs to be consolidated and harmonized during migration, MDG should be the primary system for this activity before syncing data to S/4HANA.
Regulatory or Compliance Requirements:
When regulatory requirements demand proper approval and documentation for master data changes (e.g., banking information for vendors or tax details for customers).
Process for Syncing with S/4HANA:
Approved data in MDG is replicated to S/4HANA using Data Replication Framework (DRF), IDocs, or OData services.S/4HANA receives the data and updates the relevant tables (e.g., MARA for materials, KNA1 for customers).
Key Considerations When Deciding:
Landscape Design:
If MDG is deployed as a hub, it’s the authoritative system for master data, and data should flow from MDG to S/4HANA.If MDG is co-deployed on S/4HANA, you may load data directly into S/4HANA during migration but use MDG for governance afterward.
Urgency vs. Governance:
Urgent operational requirements may require direct data loading into S/4HANA.For controlled, high-quality data, MDG is the better starting point.
Volume of Data:
Large-volume initial loads (e.g., during system go-live) are easier to handle directly in S/4HANA first, followed by harmonization in MDG.Incremental or critical master data (like financial or tax-related) should start in MDG.
Integration Complexity:
When S/4HANA is part of a multi-system landscape, MDG simplifies synchronization across all systems by acting as the central hub.
Conclusion:
Load data into SAP S/4HANA first:
For initial data migrations (e.g., from legacy systems) when setting up the system during implementation.In urgent scenarios where transactional processes require immediate access to master data.For testing or development environments, where governance workflows are not yet required.
Load data into SAP MDG first:
When governance, validation, and approval processes are required before the data becomes operational in S/4HANA.In steady-state operations after implementation, where MDG serves as the master data hub for S/4HANA and other systems.When harmonizing data from multiple sources, ensuring quality and consistency before replication to S/4HANA.
Key Rule of Thumb:
MDG should govern all future changes after initial loads into S/4HANA, as it ensures master data quality, validation, and compliance.Direct loading to S/4HANA is only recommended during initial migration or emergencies.
For most organizations, MDG becomes the primary source of truth for master data once the system is fully implemented.
Looking forward to your thoughts and any additional scenarios you’d like to share!
Thanks,
Venkatesh Golla
Hello Everyone,In many common discussions among us, especially within our data colleagues, most repeated discussion that takes into place “Should Master Data be loaded into S/4HANA or MDG?”Let’s explore today this topic and solution too.we should always know how to frame a question about the topic.Let’s take a step back and reframe this question.Rather than approaching it as a binary choice, we should first evaluate key aspects like:Landscape and Architecture:Is MDG deployed as a hub system or co-deployed with S/4HANA?Is the organization already relying on MDG for master data governance?Business Requirements:Are there critical validation, approval, and governance processes in place?Is the data required urgently for transactional purposes?Only after assessing these factors can, we effectively determine the right approach.Rather than asking such a blunt question, where to load either to S4Hana or MDG, we should 1st know the landscape, architecture and business requirements and then only we are eligible to decide or discuss about the solution either to load in MDG or S4Hana.let’s discuss the scenarios where to load in S4Hana and MDG.Instead of asking “Where to load master data?”, the better question is:“What are the business needs and system requirements that should guide our decision?”By addressing this question with the context of the architecture and use case, we can ensure our approach is tailored, efficient, and aligned with business goals.When you have both SAP S/4HANA and SAP MDG systems in your landscape, deciding where to load master data first depends on the data governance requirements and the system’s role in your architecture. Here’s how to determine the approach:1. Loading Data to S/4HANA FirstIn some scenarios, master data needs to be loaded directly into S/4HANA without first passing through MDG:Scenarios to Load Data to S/4HANA First:Legacy System Migration:If you’re migrating large volumes of master data from a legacy system to S/4HANA during an implementation, and MDG isn’t fully configured yet.After data is loaded into S/4HANA, MDG can be used for governance and future updates.Transactional Urgency:If the master data is needed immediately for transactional processing (e.g., posting invoices, creating purchase orders) and there’s no time for governance workflows in MDG.Example: A new supplier needs to be added urgently to process a purchase order.Test/Development Environments:During testing phases, master data might be loaded into S/4HANA directly to validate configurations, without involving MDG governance workflows.Process for Syncing with MDG:Once data is in S/4HANA, MDG can import this data using initial load mechanisms (e.g., MDG File Upload Framework or standard APIs).Afterward, MDG governs and manages future changes to the data.2. Loading Data to MDG FirstFor most scenarios, master data should be loaded into MDG first, as it is the system responsible for governance, validation, and replication.Scenarios to Load Data to MDG First:Governance and Validation Requirements:When master data must pass through strict validation rules, workflows, and approval processes before becoming operational in S/4HANA.Example: Adding new customers or materials that require input and approval from multiple stakeholders (e.g., sales, finance, logistics).Centralized Master Data Management:If MDG is deployed as a central hub system to govern master data for multiple systems (e.g., S/4HANA and non-SAP systems).Data is created/updated in MDG and then replicated to all target systems, including S/4HANA.Harmonization Post-Migration:If master data from multiple legacy systems needs to be consolidated and harmonized during migration, MDG should be the primary system for this activity before syncing data to S/4HANA.Regulatory or Compliance Requirements:When regulatory requirements demand proper approval and documentation for master data changes (e.g., banking information for vendors or tax details for customers).Process for Syncing with S/4HANA:Approved data in MDG is replicated to S/4HANA using Data Replication Framework (DRF), IDocs, or OData services.S/4HANA receives the data and updates the relevant tables (e.g., MARA for materials, KNA1 for customers).When you have both SAP S/4HANA and SAP MDG systems in your landscape, deciding where to load master data first depends on the data governance requirements and the system’s role in your architecture. Here’s how to determine the approach:Key Considerations When Deciding:Landscape Design:If MDG is deployed as a hub, it’s the authoritative system for master data, and data should flow from MDG to S/4HANA.If MDG is co-deployed on S/4HANA, you may load data directly into S/4HANA during migration but use MDG for governance afterward.Urgency vs. Governance:Urgent operational requirements may require direct data loading into S/4HANA.For controlled, high-quality data, MDG is the better starting point.Volume of Data:Large-volume initial loads (e.g., during system go-live) are easier to handle directly in S/4HANA first, followed by harmonization in MDG.Incremental or critical master data (like financial or tax-related) should start in MDG.Integration Complexity:When S/4HANA is part of a multi-system landscape, MDG simplifies synchronization across all systems by acting as the central hub.Conclusion:Load data into SAP S/4HANA first:For initial data migrations (e.g., from legacy systems) when setting up the system during implementation.In urgent scenarios where transactional processes require immediate access to master data.For testing or development environments, where governance workflows are not yet required.Load data into SAP MDG first:When governance, validation, and approval processes are required before the data becomes operational in S/4HANA.In steady-state operations after implementation, where MDG serves as the master data hub for S/4HANA and other systems.When harmonizing data from multiple sources, ensuring quality and consistency before replication to S/4HANA.Key Rule of Thumb:MDG should govern all future changes after initial loads into S/4HANA, as it ensures master data quality, validation, and compliance.Direct loading to S/4HANA is only recommended during initial migration or emergencies.For most organizations, MDG becomes the primary source of truth for master data once the system is fully implemented.Looking forward to your thoughts and any additional scenarios you’d like to share!Thanks,Venkatesh Golla Read More Technology Blogs by Members articles
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