What is SAP Master Data Governance and why is it important for

businesses?

SAP Master Data Governance (MDG) is a solution provided by SAP to manage

and govern master data. It provides a centralized system for managing
master data entities such as customers, products, suppliers, and others.
Master data is an important component of a business’s information system,
as it is used in many business processes and transactions.

MDG helps organizations to ensure the quality, accuracy, and consistency of

master data across all systems and applications. This is accomplished
through a set of tools and processes that are used to manage the creation,
modification, and maintenance of master data. The solution also provides a
governance framework for managing master data, which includes roles and
responsibilities, data quality rules, and data governance processes.

The importance of SAP Master Data Governance for businesses is due to

several factors:

1. Improved Data Quality: By centralizing the management of master

data, organizations can ensure that their master data is accurate and
consistent across all systems and applications. This helps to reduce the
risk of errors and improve the overall quality of the data.
2. Improved Business Processes: SAP MDG provides a centralized system
for managing master data, which helps to streamline business
processes and improve the efficiency of operations. This can result in
improved customer satisfaction, increased revenue, and reduced costs.
3. Compliance with Regulatory Requirements: Organizations must comply
with various regulatory requirements related to data privacy and
security. SAP MDG provides a framework for managing master data
that helps organizations to meet these requirements.
4. Improved Decision-Making: Accurate and consistent master data is
essential for effective decision-making. SAP MDG helps organizations
to improve the quality and accuracy of their master data, which can
lead to better decision-making and improved business outcomes.

In conclusion, SAP Master Data Governance is an important solution for

organizations looking to improve the quality, accuracy, and consistency of
their master data. It provides a centralized system for managing master data
and a governance framework for ensuring that data is managed in a
controlled and consistent manner. The benefits of SAP MDG include improved
data quality, improved business processes, compliance with regulatory
requirements, and improved decision-making.

Can you explain the different types of master data in SAP?

SAP master data refers to the key data elements in an SAP system that are
central to the business processes and transactions. There are different types
of master data in SAP, including:

1. Material Master Data: This type of master data refers to information

about the materials and products used in an organization, including the
product description, unit of measure, and pricing information.
2. Customer Master Data: This type of master data contains information
about the customers of an organization, including the customer name,
address, and contact information.
3. Vendor Master Data: This type of master data contains information
about the vendors of an organization, including the vendor name,
address, and payment terms.
4. Equipment Master Data: This type of master data refers to information
about the equipment used in an organization, including the equipment
type, manufacturer, and maintenance information.
5. Financial Master Data: This type of master data contains information
about the financial transactions of an organization, including the
general ledger accounts, cost centers, and internal orders.
6. Sales and Distribution Master Data: This type of master data contains
information about the sales and distribution process, including the
sales organization, distribution channel, and shipping conditions.
7. Production Master Data: This type of master data contains information
about the production process, including the bill of materials, routing,
and capacity requirements planning.
8. Human Resource Master Data: This type of master data contains
information about the employees of an organization, including the
employee name, address, and job information.

Each type of master data plays a critical role in supporting the business
processes and transactions within an SAP system. The quality and accuracy
of the master data are essential for the successful execution of these
processes and transactions.

How does SAP Master Data Governance ensure data consistency and
accuracy?

SAP Master Data Governance (MDG) is a data governance solution provided

by SAP that helps organizations ensure the consistency and accuracy of their
master data. It does this by providing a centralized platform for managing,
maintaining, and governing master data across the enterprise.

Here’s how SAP Master Data Governance ensures data consistency and
accuracy:
 1. Centralized platform: MDG provides a centralized platform for
managing master data, so that all master data is managed and
maintained in a single place. This ensures that all systems and
processes are using the same version of the data, reducing the risk of
data inconsistencies.
2. Data modeling: MDG provides a flexible data modeling capability,
which allows organizations to define the structure of their master data
and enforce specific business rules. This helps ensure that the master
data is consistently structured and that all data is entered in a
standardized format, which reduces the risk of data inaccuracies.
3. Workflow management: MDG provides a robust workflow management
system that can be used to automate the approval process for changes
to master data. This ensures that changes are properly reviewed and
approved before they are implemented, reducing the risk of incorrect
changes being made.
4. Data quality checks: MDG includes a range of data quality checks that
are applied to master data as it is being entered and maintained.
These checks can be configured to enforce specific data quality rules
and to ensure that the data being entered is complete, accurate, and
consistent.
5. Data stewardship: MDG includes a data stewardship framework that
allows organizations to assign responsibility for specific areas of
master data to individual users or teams. This ensures that the data is
properly maintained and that there is a clear understanding of who is
responsible for maintaining the data quality.

Overall, SAP Master Data Governance provides a comprehensive solution for

managing master data and ensuring that it is consistent and accurate across
the enterprise. By using MDG, organizations can improve the quality of their
master data and reduce the risk of data inconsistencies and inaccuracies.

What are the key benefits of using SAP Master Data Governance for
data management?

SAP Master Data Governance (MDG) is a software solution that enables

organizations to manage, govern, and maintain the accuracy and
consistency of their master data. The key benefits of using SAP MDG for data
management are:

1. Improved Data Quality: SAP MDG ensures that the master data is
accurate, complete, and consistent across all systems, which helps in
reducing the risk of data errors and improves data quality.
2. Better Data Governance: SAP MDG provides a central repository for
master data that enables organizations to manage, monitor, and
control access to their master data. This helps in reducing the risk of
data security breaches and improves data governance.
 3. Streamlined Data Management: SAP MDG provides a centralized
platform for managing master data, which helps in reducing the time
and effort required to maintain and update master data in multiple
systems.
4. Increased Collaboration: SAP MDG enables multiple users to
collaborate and contribute to master data management in real-time,
which helps in improving data accuracy and reducing data
inconsistencies.
5. Better Data Integration: SAP MDG integrates master data with other
systems and applications, which helps in improving data accuracy and
reducing data inconsistencies across different systems.
6. Enhanced Data Analytics: SAP MDG provides real-time insights into
master data, which helps in improving data accuracy and reducing
data inconsistencies, and enables organizations to make data-driven
decisions.

In conclusion, SAP Master Data Governance provides organizations with a

centralized platform for managing and maintaining the accuracy and
consistency of their master data, which helps in improving data quality,
reducing data inconsistencies, and improving data governance.

Can you walk us through the process of creating and managing

master data in SAP?

Master data in SAP refers to the data that is critical to an organization’s

business processes and functions, such as customer data, vendor data,
material data, and financial data. This data is used as a reference for
transactions, reports, and other business processes.

The process of creating and managing master data in SAP involves the
following steps:

1. Define data fields: The first step is to define the data fields that will be
used to create master data. This includes fields such as customer
name, address, and contact details, material description, and vendor
information.
2. Create data templates: Next, data templates are created for each type
of master data, such as customer data, material data, and vendor
data. These templates define the data fields that will be used to store
master data.
3. Populate master data: After creating data templates, the next step is
to populate the master data. This can be done manually, by entering
data directly into SAP, or by importing data from external sources,
such as spreadsheets or databases.
4. Validate data: Once the master data is populated, it is important to
validate the data to ensure that it is accurate and consistent. This can
 be done by using validation rules, such as checking that a customer’s
address is in the correct format or that a material number is unique.
5. Approve master data: After validating the data, it is important to have
someone in the organization approve the master data. This is typically
done by a data steward or a business analyst who is responsible for
ensuring that the data is accurate and meets the organization’s
standards.
6. Manage master data: Once the master data is approved, it is important
to manage the data on an ongoing basis. This involves updating the
data when it changes, such as when a customer moves to a new
address, or when a material is discontinued.
7. Monitor data quality: Finally, it is important to monitor the quality of
the master data to ensure that it remains accurate and up-to-date. This
can be done by using data quality reports and dashboards, which
provide insights into the accuracy and completeness of the master
data.

In conclusion, creating and managing master data in SAP is a critical process

that requires a structured approach and careful attention to detail. The steps
outlined above provide a roadmap for ensuring that master data is accurate,
consistent, and up-to-date, which is essential for supporting business
processes and driving business success.

How does SAP Master Data Governance integrate with other SAP
solutions, such as SAP S/4HANA?

SAP Master Data Governance (MDG) is a central solution for managing and
maintaining master data across SAP systems. It provides a single point of
control for master data, ensuring that data quality, consistency, and
completeness are maintained.

The integration of SAP MDG with other SAP solutions, such as SAP S/4HANA,
is crucial to ensure a seamless and consistent master data management
process. The integration allows data to be shared and updated across
different systems, ensuring that data is up-to-date and accurate.

The following are the ways in which SAP MDG integrates with SAP S/4HANA:

1. Data Replication: SAP MDG can be used to replicate master data from
SAP S/4HANA to other systems, ensuring that data is up-to-date and
accurate across all systems.
2. Data Quality: SAP MDG provides a set of tools and functionalities for
managing and maintaining data quality, such as data validation and
data enrichment. These tools can be used to ensure that data entered
into SAP S/4HANA is of high quality and meets specific standards.
 3. Data Governance: SAP MDG provides a central platform for data
governance, enabling organizations to manage and maintain master
data across different systems and applications. This includes data
classification, data governance workflows, and data ownership.
4. Data Mapping: SAP MDG can be used to map master data between SAP
S/4HANA and other systems, ensuring that data is consistently
maintained across all systems.
5. Data Centralization: SAP MDG provides a central repository for master
data, enabling organizations to maintain a single source of truth for
master data. This eliminates the need for manual data entry, reducing
errors and improving data quality.

In conclusion, the integration of SAP Master Data Governance with SAP

S/4HANA enables organizations to manage and maintain master data across
different systems, ensuring data quality, consistency, and completeness.
This integration ensures a seamless and efficient master data management
process, reducing errors and improving data quality.

Can you explain the role of data stewards in SAP Master Data
Governance and their responsibilities?

Data Stewards play a crucial role in SAP Master Data Governance. They are
responsible for ensuring the accuracy, completeness, and consistency of the
master data within the SAP system. They are also responsible for defining
and implementing data governance policies, procedures, and controls to
ensure that master data is managed effectively and efficiently.

The main responsibilities of Data Stewards in SAP Master Data Governance

include:

1. Data Quality Management: Data Stewards are responsible for ensuring

that master data is accurate, complete, and consistent across the
enterprise. They work with data owners and business users to validate
data and resolve any data quality issues.
2. Data Governance Policy: Data Stewards are responsible for defining
and implementing data governance policies and procedures. They
ensure that data governance policies are aligned with business needs
and goals, and that all stakeholders are aware of these policies and
procedures.
3. Data Access and Security: Data Stewards are responsible for managing
the access to master data and ensuring that data is protected from
unauthorized access. They also ensure that data security policies and
procedures are in place to protect sensitive data.
4. Data Classification and Management: Data Stewards are responsible
for classifying master data and ensuring that it is managed and stored
in a way that meets business needs. They work with data owners to
 define data retention policies and procedures, and to ensure that
master data is archived or deleted when it is no longer needed.
5. Data Auditing and Monitoring: Data Stewards are responsible for
monitoring and auditing master data to ensure that it is managed
effectively and efficiently. They work with data owners and business
users to resolve data quality issues and to implement data governance
policies and procedures.

In summary, Data Stewards play a critical role in SAP Master Data

Governance by ensuring the accuracy, completeness, and consistency of
master data, and by implementing data governance policies, procedures,
and controls to manage master data effectively and efficiently.

Can you discuss the challenges faced in master data management

and how SAP Master Data Governance addresses them?

As organizations become more data-driven, the importance of having

accurate, consistent, and up-to-date master data is becoming increasingly
crucial. Master data is the critical data that organizations rely on to make
business decisions, including customer and supplier information, product
information, and financial data. However, the challenge of managing master
data effectively is not trivial.

Here are some of the challenges faced in master data management and how
SAP Master Data Governance addresses them:

1. Data quality and consistency: Ensuring the quality and consistency of

master data is a major challenge as data is often spread across
multiple systems, applications, and databases. SAP Master Data
Governance provides a centralized solution for managing master data,
ensuring that all data is accurate and up-to-date.
2. Data governance: Implementing a comprehensive data governance
process can be challenging, especially for organizations with multiple
departments, business processes, and data sources. SAP Master Data
Governance provides a centralized solution for data governance,
ensuring that all data is governed in a consistent and controlled
manner.
3. Data integration: Integrating master data from different systems and
applications can be difficult, especially when dealing with legacy
systems. SAP Master Data Governance provides a centralized solution
for data integration, ensuring that data is accurately and consistently
integrated across all systems and applications.
4. Data security: Ensuring that master data is secure and protected from
unauthorized access is critical. SAP Master Data Governance provides a
secure solution for master data management, ensuring that data is
 protected from unauthorized access and that all data access is
controlled and monitored.
5. Data privacy: Ensuring that master data is protected from privacy
breaches is becoming increasingly important, especially as
organizations are subject to various data privacy regulations. SAP
Master Data Governance provides a solution for managing privacy-
sensitive data, ensuring that data is protected from privacy breaches
and that all data access is controlled and monitored.

In conclusion, SAP Master Data Governance provides a comprehensive

solution for managing master data, addressing the major challenges faced in
master data management. With SAP Master Data Governance, organizations
can ensure that their master data is accurate, consistent, up-to-date, and
protected from unauthorized access, ensuring that they have the data they
need to make informed business decisions.

Can you explain the concept of data modeling in SAP Master Data
Governance?

Data modeling in SAP Master Data Governance refers to the process of

creating a logical representation of the structure, relationships, and
constraints of a company’s master data. This representation, known as a
data model, serves as a blueprint for how master data should be organized,
stored, and maintained within an SAP system.

The data modeling process in SAP Master Data Governance involves several
key steps:

1. Understanding the Business Requirements: The first step in data

modeling is to gather a deep understanding of the business
requirements and what type of data is required to support the business
processes.
2. Identifying Master Data Entities: Based on the business requirements,
the data modeler will identify the key master data entities that need to
be modeled. This could include entities such as customer, vendor,
material, and financial data.
3. Defining Attributes: For each master data entity, the data modeler will
define the attributes or characteristics that describe the entity. For
example, the customer entity might have attributes such as customer
name, address, and phone number.
4. Establishing Relationships: The data modeler will then establish the
relationships between the master data entities. For example, a
customer may have a relationship with a vendor, or a material may
have a relationship with a financial account.
5. Applying Constraints: The data modeler will also apply constraints to
the data model to ensure that the master data is entered and
 maintained in a consistent and accurate manner. For example, the
data model may enforce constraints such as mandatory fields or
maximum lengths for data values.

Once the data model is completed, it can be used as a foundation for

building the master data governance processes within SAP Master Data
Governance. The data model ensures that the master data is structured in a
way that supports the business processes and allows for efficient and
accurate data management.

In conclusion, data modeling is a critical step in SAP Master Data Governance

as it provides a clear understanding of the structure, relationships, and
constraints of the company’s master data, which serves as a foundation for
the design and implementation of the master data governance processes.

How does SAP Master Data Governance support data governance

and data governance compliance?

SAP Master Data Governance (MDG) is a software solution that helps

organizations manage and govern their master data. It provides a centralized
platform for defining and maintaining data quality, consistency, and
compliance.

The following are some of the ways in which SAP MDG supports data
governance and data governance compliance:

1. Centralized Repository: SAP MDG provides a centralized repository for

master data, making it easier to maintain data quality and consistency
across the organization. It also provides a centralized platform for
defining data quality and governance policies, which can be easily
enforced across the organization.
2. Data Governance Workflow: SAP MDG provides a comprehensive data
governance workflow that enables organizations to manage their data
governance activities in a centralized and efficient manner. The
workflow includes key steps such as data creation, modification, and
approval, which are managed by the data governance team.
3. Data Validation and Approval: SAP MDG includes robust data validation
and approval mechanisms to ensure data quality and consistency. It
provides a set of predefined validation rules that can be easily
customized to meet the specific requirements of an organization. The
validation and approval process can also be easily integrated with
other SAP systems, such as SAP ERP, to ensure that data is consistent
across all systems.
4. Compliance Management: SAP MDG includes built-in compliance
management capabilities that help organizations meet regulatory and
legal requirements. The software supports the management of data
 privacy, data security, and data protection policies, helping
organizations maintain compliance with data protection laws and
regulations.
5. Data Auditing and Reporting: SAP MDG provides detailed data auditing
and reporting capabilities, enabling organizations to monitor data
quality and compliance. The software provides reports on data quality,
data usage, and data governance activities, which can be used to
improve data quality and ensure compliance with data governance
policies.

In conclusion, SAP MDG provides a comprehensive solution for managing and

governing master data, helping organizations maintain data quality,
consistency, and compliance. It provides a centralized platform for defining
and enforcing data governance policies, and includes robust data validation
and approval mechanisms, compliance management, and data auditing and
reporting capabilities.

Basic Interview Questions

Q1. What is the purpose of MDG-C?

SAP MDG-C stands for Master Data Governance for Customer. This allows us
to govern customer master data on a hub system and replicate the customer
master data to various client systems.

Q2. Define SAP Business workflow.

SAP Business Workflow is useful for processing change requests in SAP

Master Data Governance. In order to define the process flow of the change
request, we can either use standard workflow templates or custom workflow
templates while defining a change request type.

Q3. Define workflow analysis.

Workflow analysis is generally the process of breaking down the performance

of a workflow and examining the trends for improvement. Moreover,
business users can tweak processes for optimal efficiency and workplace
productivity by looking at a workflow at a granular task level.

Q4. What are the three steps of workflow?

The three steps of the workflow are:

 Input
 Transformation
  Output

Q5. What is a workflow process?

A workflow process is a succession of sequential tasks carried out on the

basis of user-defined rules or conditions so as to execute a business process.

Q7. Define load balancing.

Load balancing is the efficient and methodical distribution of network or

application traffic across several servers in a server farm. Hence, it ensures
that no single server bears too much demand.

Q8. What is shared data?

Shared data is the amount of data that is shared by many people on a single
plan. Day by day, shared data plans are becoming increasingly rare as this is
the age of unlimited data.

Q9. What is the set of status control attributes?

Well, the set of status control attributes include:

 no processing
 Changes are allowed in data
 objects can be added or eliminated

Q10. What are reconciliation accounts?

Reconciliation accounts are useful to link sub-ledger to ledger accounts in

real-time. In case, GL is set up as a recon act then direct posting is
restricted. Moreover, the reconciliation account updates when SL posting
happens.

Q11. What is the Data Replication Framework?

The Data Replication Framework offers a distribution model for integrating

into the overall landscape. Moreover, we can use DRF in order to replicate
data from the Master Data Governance hub to all relevant target systems
including both SAP and non-SAP systems.

Q12. What do you mean by RFM?

RFM is basically an add-on for the SAP MDG platform which delivers
capabilities for consistent definition, replication, and authorization of key
master data entities.

Q13. What are the benefits of MDG-RFM?

 Timely identification of defects

 Reduction of the holistic maintenance effort
 Flexible workflow capabilities
 Supports comprehensive article-search capabilities
 Full transparency

Q14. Whom do you call a business partner?

A business partner is basically a person, group of persons, organization, or

group of organizations in which a company has a business interest.

Q15. What do you mean by a chart of accounts?

Chart of accounts consists of a group of GL so as to form an account group.

Thus, every company code is assigned a chart of accounts.

Q16. What are the three types of chart of accounts?

The three types are:

 Group
 Operational
 Country

Q17. What does data manipulation refer to?

Data manipulation is the procedure of adjusting data to make it organized

and comparatively easier to read and understand. Moreover, data
manipulation language i.e. DML is a programming language that
adjusts data by inserting, eliminating, and modifying data in a database to
cleanse or map the data.

Q18. What is data visualization?

Data visualization is basically the graphical representation of data and

information. Subsequently, with the use of visual elements such as graphs,
charts, and maps, data visualization tools give an accessible way of viewing
and understanding outliers, trends, and patterns in data.
Q19. What are the types of data sharing?

The three types of data sharing are:

 Sharing data between the functional units.

 Data sharing between the management units.
 Sharing data between the geographically dispersed locations.

Q20. What is the controlling area?

The basic org unit in management accounting. When organizational

structures are formed, one or more governing regions are allocated to an
operational concern. As a result, numerous business codes can share the
same Controlling area only if their FY variations and charts of accounts are
comparable (COA)

Q21. What is the purpose of ABAP report?

Well, the Replicate Business Data for Advanced Compliance Reporting

Service report in the SAP ERP source system allows us to replicate
configuration, transactional, and master data from the source system to the
cloud database.

Q22. Why do we create an RFC destination?

For the following purposes, we create the RFC destination:

 Replication of data from SAP ERP source system to the cloud database,
with thw use of ABAP report
 Fetching details of reported documents from the cloud database to the
SAP ERP source system
 Integration of the SAP S/4HANA system with the service so as to submit
reports created using SAP S/4 HANA for Advanced Compliance
Reporting.

Q23. What is the use of configure scope?

Configure Scope is useful for customizing activity in order to configure the

default scope for the mass process. This default scope will show on
the Scope screen in the SAP Fiori UI. Moreover, it determines the fields
available in the edit step of the SAP Fiori UI.

Q24. What are the requirements of business functions?

Before activating the business functions, we need to ensure that we have the
administration authorization for MDG. Moreover, the authorization objects
that are needed are delivered with the authorization role SAP_MDG_ADMIN.

Q25. What is SAP fraud management?

The integration of SAP Fraud Management allows the authorized users in

change request processing in the SAP MDG, central governance to perform
the screening of a person or company by SAP Fraud Management.

Q26. What is the need for fraud management?

Well, fraud management and investigation is necessary as it provides the

essentials for resolving fraud allegations from inception to deposition. Hence,
the use of proper procedures, techniques, and skills is essential so as to
conduct an effective fraud investigation or examination.

Q27. What are the components of data model?

The components of the data model are:

 entity types
 attributes
 relationships

Q28. Mention the types of risk control.

The three types of internal risk controls are:

 detective
 corrective
 preventative

Q29. What is the purpose of data modelling?

Well, the aim of data modeling is to define the structure of the data storage.
In the master data processing, a change request stores the master data
changes in a staging area. Moreover, the data model can define a reuse area
used for data storage after the completion of change request processing and
the activation of related data.

Q30. Who should manage the risk of fraud?

A combined effort has to be made by the board of directors, internal and

external auditors, the audit committee, risk management personnel,
operations personnel, investigators, and others in order to manage the risk
of fraud.

Q31. How are entity details divided?

 General Details
 Key Assignment
 Hierarchies
 Reuse
 Enablement Status
 Texts

Q32. What is the role of Attributes tab?

This is used for defining the attributes of each entity type in the data model.
Attributes are mapped as non-key fields in the created database tables of
the entity type. Moreover, we are required to assign an existing data
element to each attribute.

Q33. What are the common types of user interface?

The common types of the user interface are:

 Single-Object Processing
 Search
 Multiple-Record Processing

Q34. What is the purpose of Data Quality and Search?

The data quality functions of MDG enable us to enrich and validate master
data and prevent the creation of duplicates. Moreover, the different search
capabilities are not just used to find master data that can be processed but
can also be used to match data so as to prevent the creation of duplicate
information.

Q35. Define process modeling.

The setup of change requests, governance scope, and workflow allows us to

simulate the desired governance process in a variety of ways.

Q36. What does ERP stand for?

Well, ERP stands for Enterprise Resource Planning Software. This is an

integrated computer-based system useful for managing the resources of a
company effectively. Moreover, it ensures smooth information amongst
various departments in an enterprise or an organization along with managing
workflows.

Q37. Define data sets.

The data sets are the sequential files that are processed on the application
server. Hence, they are useful for handling files in SAP.

Q38. Mention the steps of data mining.

The three steps of data mining are:

 Initial Exploration
 Model building
 Deployment

Q39. What is metadata?

Well, metadata is the information that describes items in ArcGIS. When care
is taken so as to provide good descriptions, one can find suitable items with
a search and evaluate which of the items in the search results is the correct
one to use.

Q40. What are the source systems in SAP?

Some of the source systems in SAP are:

 SAP BW
 SAP R/3 source system
 External Systems
 Flat files

1. What is SAP MDG?

SAP MDG is a centralised master data system designed
to govern and manage master data. It differs from
traditional methods like transactions, which create
material once.
In MDG, multiple levels of approval are required before
material is made in the system.
2. What is the difference between SAP MDG and
traditional methods?
The difference between SAP MDG and traditional
methods is that SAP MDG requires multiple levels of
approval before the material is created.
In contrast, traditional ECC systems require various
levels of approval before the material is made.
3. What is mastered data in SAP MDG?
Mastered data is created once and used multiple times
in SAP MDG. It is used for longer durations and rarely
changes to it.
In SAP MDG terminology, mastered data includes sales
orders, purchase orders, invoices, goods, movement
documents, and make-to-orders.
4. What is the purpose of SAP MDG?
The purpose of SAP MDG is to govern and manage
master data. It provides a centralised system for
creating and managing master data and ensures that it
is appropriately collected and updated.
5. What is the material master in SAP MDG?
Material masters in SAP MDG include material
masters, customers, vendors, cost centres, profit
centres, G R counts, articles, equipment, functional
locations, and bombs.
These mastered data are created in different modules
in SAP.
6. What is the data replication framework in SAP
MDG?
The data replication framework in SAP MDG is an out-
of-the-box solution that allows for domain-specific
features.
It is designed for particular master data objects, such
as material master business partners, finance objects,
article master, plant maintenance modules, task lists,
and object links.
7. What is domain-specific master data
governance?
Domain-specific master data governance involves
materials in SD and MMM customer vendor business
partners.
These domain-specific master data are already out of
the box, and users can configure these features to meet
their business needs.
8. Why is SAP MDG being implemented?
SAP MDG allows creating, updating, extending,
blocking, marking, and deleting master data.
Operations can be performed on the master data, and
changes can be replicated or distributed to multiple
target systems.
9. What is the advantage of creating master data
centrally in the SAP MDG system?
The advantage of creating master data centrally is that
it provides a single view of all master data in one
system. This allows for easier decision-making based
on the data.
Additionally, all systems are in synchronised mode,
preventing the creation of duplicate records in
different systems.
10. What is the governance process in SAP MDG?
The governance process in SAP MDG involves adding a
staging area concept to the underlying active area
tables, which are activated tables.
This allows for the loading and keeping working
records in the staging table, preventing them from
being moved to the underlying GCC until approval is
granted.
11. What is consistency in governance?
Consistency in governance refers to the uniform
application of rules, policies, and procedures across all
areas of an organisation.
It ensures that all processes and systems are aligned
with the organisation’s goals and objectives.
12. What is consolidation in SAP MDG?
Consolidation in SAP MDG is a recent innovation from
S A P that allows mass data flow from multiple source
systems to SAP MDG. It merges three records into one
best record, allowing for more accessible data updates
and creating a single card instead of multiple
documents from multiple source systems.
The consolidation process in SAP MDG uses an
algorithm called BRC to merge multiple records into
one record.
13. What are mass capabilities in SAP MDG?
Mass capabilities in SAP MDG address performance
issues when loading multiple records using file upload
or download. It allows for bulk operations and can be
used for consolidating or using consolidation features.
The mass app can replace file upload or download in
MDG for bulk operations.
14. What is the role of SAP MDG in integration?
SAP MDG is a centralised mass data system that can
easily integrate with other non-SAP MDG systems for
mass data distribution. It can also integrate with third-
party non-SAP MDG systems like Dunce and Dunce,
Broad State, D&B, and data instruments.
SAP MDG can connect to vertex systems for tax
detection code derivations and external enrichments.
15. What is data quality management in SAP
MDG?
Data quality management is a component of the SAP
MDG system that allows users to define rules to
validate and measure data quality. It can be used to
correct inaccurate records and ensure data integrity.
16. How is data quality managed in SAP MDG?
Users can define rules in DQM (Data Quality
Management) and run them on their existing or ECIS
underlying database. The output will indicate the
number of defective records; remediation is the next
step.
Once the records are corrected, they are written back
into the underlying ECC.
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17. What is the purpose of consolidation in SAP

MDG?
Consolidation allows data from multiple sources to be
loaded into the consolidation component. It can merge
records or handle them in bulk, enabling the SAP MDG
and consolidation components in the same system.
The consolidated records are then handed over to the
SAP MDG, processed by a reviewer, and distributed to
multiple target systems.
18. What are the essential business functions for
bringing SAP MDG-related functionality into the
system?
Business functions are categorised into foundation and
application-specific functions. Foundation business
functions start from the foundation until the foundation
works.
The latest version of SAP MDG9.2 requires activating
all related business functions in a sequence, starting
from foundation until foundation to work.
19. When is it necessary to activate business
functions in SAP MDG?
Business functions need to be activated to ensure
complete functionality in SAP MDG. This includes
activating all related business functions sequentially,
starting from foundation until foundation to work as
SAP MDG releases new foundations, the basic needs to
activate those business functions.
20. What is the foundation business function in
the SAP MDG framework?
The foundation business function in the SAP MDG
framework is a bare minimum unit that activates all
business functions related to the foundation. It
includes generic platforms, framework-related objects,
and standard framework-related features.
21. Is the foundation mandatory in SAP MDG?
Yes, the foundation is mandatory in SAP MDG as it is a
bare minimum unit that activates all business functions
related to the foundation.
22. Are there specific business functions for MM,
BPR customer, vendor, finance, article master,
and EEA inSAP MDG?
Yes, there are specific business functions for MM, BPR
customer, vendor, finance, article master, and EEA in
SAP MDG. These are application-specific business
functions.
23. What is the difference between hub and code
deployment in SAP MDG?
The difference between hub and code deployment in
SAP MDG is that a hub system is a copy of existing
systems, such as SAP1, SAP2, and SAP3, that do not
touch any existing systems.
In contrast, code deployment involves installing an
MDM component on top of a current transactional
system, allowing for data replication between target
systems.
24. What is the focus regarding deployment
scenarios for Master Data Management (MDM)
systems?
The focus of the deployment scenarios for Master Data
Management (MDM) systems is on the pros and cons of
each deployment scenario, focusing on the cost-
effectiveness of each approach.
Itemphasises the importance of considering the client’s
specific needs and budget when choosing the right
approach for MDM systems.
25. What is the purpose of SAP MDG systems?
SAP MDG systems refer to existing SPRO
configurations and handle bulk orders and mass
processes in SAP systems.
They are responsible for syncing master data and are
used to ensure consistency and accuracy of data across
different systems.
26. What is the need for a bare minimum version
of the underlying ECC system in SAP MDG
systems?
A bare minimum version of the underlying ECC system
is needed to activate new business functions in SAP
MDG systems.
This ensures the system can handle the increased load
and complexity of new functions.
27. What is a config sink in SAP MDG systems?
A config sink is a term used in SAP MDG systems to
refer to additional maintenance required when new
business functions are added.
This is done to ensure that the system can handle the
increased load and complexity of the new functions.
28. What is the difference between a hub
deployment scenario and a code deployment
scenario in SAP MDG systems?
Hub deployment targets EHP 8 systems, which can be
upgraded without team approval. The SAP MDG plan is
independent of transactional or ECC systems.
Upgrades from EHP 8 to 10 improve service line work
and testing in code deployment scenarios. Call all
service lines and stakeholders to acquire approval and
schedule the upgrade to avoid this.
29. How vital is master data synchronisation in
SAP MDG systems?
Master data synchronisation is essential in SAP MDG
systems to ensure consistency and accuracy of data
across different systems.
It is necessary to ensure that all systems use the same
data and that any changes made to the data in one
system are reflected in all other systems.
30. What is the TCO (Total Cost of
Implementation) in SAP MDG systems?
The TCO (Total Cost of Implementation) in SAP MDG
systems refers to the cost impact without additional
system maintenance. Customisation or reference mass
data is always synced in a hub deployment scenario.
A clean data approach is used for future flexibility,
separating master data into a dedicated system.
31. What is the MDG architecture in SAP
systems?
The MDG architecture in SAP systems consists of an
underlying ECC (S4 layer) and an MDG component
(AABAAP layer). The MDG system handles bulk orders
and mass processes, which can be challenging from a
system configuration point of view.
Splitting the MDG mass processes into separate
systems with separate databases and transactional
activities as different systems are recommended to
handle both cases.
32. What is the purpose of the staging area in
SAP MDG?
The staging area in SAP MDG is not limited to specific
objects but can be created for as many master data
objects as needed. It is a framework for material
masters, finance, business partners, and article
masters or EAM objects.
The purpose of the staging area is to provide a
centralised location for storing and managing master
data.
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33. How does SAP MDG access master data?

SAP MDG has developed UI applications for every
master data. Auto box UI applications are available for
new applications, while custom objects require
creating their UI applications.
These applications have specific roles, approvals,
actions, and other components. A typical workflow in
SAP MDG involves a requester logging into SAP MDG
and initiating a material creation process.
34. What is the framework for validation in SAP
MDG?
SAP MDG has a framework for validation, which
includes rules for creating master data. The validation
framework provides data quality adapters and a UIF
framework.
The validation framework ensures that the data
entered into the system meets specific quality
standards and is accurate.
35. How is the workflow process in SAP MDG
configurable?
The workflow process in SAP MDG is configurable,
sequential, parallel, or hybrid, depending on business
needs. The workflow involves a requester logging into
SAP MDG and initiating a material creation process.
The workflow topic includes roles, approvals, actions,
and workflow flows.
36. What is the purpose of the central governance
in SAP MDG?
Central governance in SAP MDG allows users to view
different configurations. Users can view different
configurations across all aspects of the system,
including logistics, finance, and enterprise structure-
related configurations.
Central governance ensures that all configurations are
managed in a centralised location, making organising
and maintaining the system easier.
37. What does SAP MDG’s data model serve to
accomplish?
The data model in SAP MDG deals with designing a
staging area for master data storage. The data model is
essential for storing and managing master data in the
system.
Without a data model, SAP MDG cannot perform any
operations.
38. What is the purpose of the replication process
in SAP MDG?
The replication process in SAP MDG involves
replicating master data to the respective target
systems. The replication process ensures that master
data is accurate and consistent across all systems.
The replication process is part of the data replication
framework (DRF) in SAP MDG.
39. What does SAP MDG’s change request
concept aim to achieve?
The change request concept in SAP MDG allows users
to manage changes to master data. Users can create
change requests, which can be approved or rejected by
the procurement department.
The change request concept ensures that changes to
master data are managed in a centralised location and
are consistent across all systems.
40. What is the MDG application?
The MDG application is a powerful search application
that allows users to perform various activities from the
search application.
It provides a centralised place for all activities and
offers a consistent approach across all UIs.
41. What materials are managed in SD and MMM
in Domain-specific master data governance?
a) Personnel
b) Customer
c) Vendor
d) Supplier
42. What is the role of MDG in SAP MDG’s
governance process?
a) Maintain working records in the staging table until
approval is obtained.
b) Enable business users to create master data using
the MDG UI application
c) Introduce a governance layer that allows sized
persons to log in and edit or approve requests
d) Provide a single view of all master data in one
system
43. What is the purpose of the central audit trail
functionality in SAP MDG?
a) Eliminate the need to create the same material or
duplicate the same thing
b) Maintain a synchronised system
c) Provide a single view of all master data in one
system
d) Review changes made by individuals or groups at a
later point in time
44. What is the workflow in SAP MDG?
a) Standard model with fixed rules and steps
b) Custom model that may have additional rules, cells,
and steps
c) Advanced approach that deals with change requests,
step-type actions, and different approval procedures
d) Tool used for managing SAP MDG with S4 HANA
45. What is the role of an architect in SAP MDG?
a) Create and assign roles in SAP MDG
b) Understand the requirements for the functional
specification
c) Guide the technical person in creating functional
specifications
d) Develop the data replication process using the ALI
doc change pointer and DRF data replication
framework
46. What is SAP MDG architecture?
a) Collection of required attributes
b) Framework for managing business processes
c) System for managing master data
d) Tool for managing supply chain operations
47. What is the role of the architect in SAP MDG?
a) Knowledgeable about data models
b) Familiar with master data fields
c) Responsible for enhancing the data model
d) All of the above

48. What is the custom data model in SAP MDG?

a) Collection of required attributes
b) Framework for managing business processes
c) System for managing master data
d) Created with a pre-existing data model and standard
fields provided by SAP
49. What is the difference between SAP MDG as a
hub and SAP MDG on top of ECC?
a) Architectural design vs. basis approach
b) On-premise vs. on the cloud
c) Different levels of business flow
d) Different configurations

Q1. What is SAP MDG?

Ans: SAP Master Data Governance (MDG) is a state-of-the-art master data
management solution, providing out-of-the-box, domain-specific master data
governance to centrally create, change, and distribute, or to consolidate master data
across your complete enterprise system landscape.

Q2. What is an ERP ?

Ans: ERP stands for Enterprise Resource Planning Software and is a integrated
computer based system used to manage a company’s resources effectively. It ensures
smooth information amongst various departments in an enterprise or a company and
manages workflows.

Q3. What are the different SAP products ?

Ans: SAP R/3 – It succeds SAP R/2 and is market leader in ERP. R/3 stands for three
tier architecture i.e. Presentation, Logic and Data tier. It has many modules like SD , FI ,
HR etc which encompass almost all enterprise departments.
mySAP – It is a suite of SAP products which apart from SAP R/3 also includes SRM,
PLM, CRM, SCM.

Q4. What is NetWeaver ?

Ans: Netweaver is an integrated technology platform such that all the products in the
mySAP suite can run on a single instance of netweaver known as SAP Web Application
Server (SAP WEBAs).
The advantage of using Netweaver is you can access SAP data using the web (http
protocol) or even mobile. Thus you can save on costs involved in training users on SAP
Client side GUI.

Q5. List the Different Modules in SAP.

Ans:

 FI (Financial Accounting)
 CO(Controlling)
 EC(Enterprise Controlling)
 TR(Treasury)
 IM (Investment Management)
 HR (Human Resource)
 SD (Sales and Distribution)
 MM (Materials Management)
 PM (Plant Maintenance)
 PP (Production Planning)
 QM – Quality Management
 BW (Business Warehousing)

There are many industry specific solutions that SAP provides apart from the list of
modules above which is ever growing.

[Link] is Meta data, Master data and Transaction data?

Ans: Meta Data: Meta Data is data about Data. It tells you about the structure of data or
MetaObjects.
Master Data: This Data is key business information like Customer information ,
Employee , Materials etc. This is more like a reference data. For Ex. If a customer
orders 10 units of your product instead of asking customer for his shipping address 10
times , the same can be referenced from the Customer Master Data.
Transaction Data: This is data related to day to day transactions.

Q7. Can we run business warehouse without SAP R/3 implementation?

Ans: Yes, you can run business warehouse without R/3 implementation. You have to
simply transfer structures associated with business warehouse data sources (ODS
table, Infocube) to the inbound data files or use third party tools to connect your flat files
and other data sources.

Q8. What are variables?

Ans: Variables are parameters of a query that are set in the

parameter query definition and are not filled with values until
the queries are entered into the workbooks.

Q9. What are the different types of variables?

Ans: Variables are used in different application

 Characteristics variable
 Hierarchies
 Hierarchy nodes
 Text
 Formulas
 Processing Types
 Replacement Path
 User entry/default type

Q10. Mention some of the set-backs of SAP.

Ans:

 It is expensive
 Demands highly trained staff
 Lengthy implementation time
 Interfaces are a little bit complex
 Does not determine where master data resides

Q11. What is the difference between OLAP and Data Mining?

Ans: OLAP: OLAP stands for Online Analytical Processing it is a reporting tool
configured to understand your database schema, dimensions and composition facts
Data Mining: It is an analytic process to explore data in search of consistent patterns or
systematic relationship between variables.
Q12. What are the three stages of data-mining?

Ans: Three stages of data-mining includes

1. Initial Exploration
2. Model building
3. Deployment

Q13. What are the different layers in R/3 system?

Ans: Different layers in R/3 system includes:

 Presentation Layer
 Database layer
 Application layer

Q14. What is the process to create a table in the data

dictionary?

Ans: To create a table in the data dictionary, you have to follow these steps:

 Creating domains (data type, field length, range)

 Creating data elements (Properties and type for a table field)
 Creating tables (SE 11)

Q15. What is AWB?

Ans: AWB stands for Administrator Workbench. It is a tool for monitoring, controlling
and maintaining all the processes connected with data staging and processing in the
business information warehousing.

Q16. Explain what is Bex?

Ans: Bex means Business Explorer. It allows end user to locate reports, analyze
information, view reports and can execute queries. The queries in workbook can be
saved to their respective roles in the Bex browser. It has following components Bex
analyzer, Bex Map and Bex web.
Q17. What is the importance of ODS in BIW?

Ans: An ODS object serves to store debugged and consolidated transaction data on a
document level. It defines a consolidated dataset from one or more info-sources. This
data-set can be evaluated with a Bex query or Infoset query. The data of an ODS object
can be updated with a delta update into InfoCubes or other ODS object in the same
system or across systems. In contrast to multi-dimensional data storage with InfoCubes,
the data in ODS object is stored in transparent, flat database tables.

Q18. What is the difference between Domain and Data

Element?

Ans: Data Element: It is an intermediate object between domain and table type
Domain: It defines the attributes such as length, type, and possible value range

Q19. What are SET parameters and GET parameters?

Ans: To use parameter IDs, you need to “set” values in the global memory area and
then “get” values from this parameter ID memory area. In the case of the online
program, you have to “Set” values from screen fields, and you will “get” these values for
screen fields.

Q20. What is ALE, IDOC, EDI, RFC?

Ans:

 ALE: Application Linking enabling

 IDOC: Intermediatary documents
 EDI: Electronic data interchange
 RFC: Remote function call

Q21. What is BDC stand for? How many methods of BDC are
there?
Ans: BDC stand for Batch Data Communication. The methods of BDC are:

 Direct Input Method

 Batch Input Session Method
 Call transaction Method
1.) What is SAP MDG and how does it work?

SAP Master Data Governance (MDG) is a cutting-edge master data

management technology strategy that enables out-of-the-box master data
management to centralize master data production, revision, and distribution
or to integrate master data through the corporate infrastructure.

2.) What is ERP and how does it work?

ERP stands for Enterprise Resource Planning Software, which is a computer

system that allows businesses to manage their resources more efficiently. It
manages workflows and allows information to be shared between various
entities within an organization or enterprise.

3.) What SAP products are available?

SAP R/3 is the successor to SAP R/2 and is the industry leader in enterprise
resource planning. The Presentation, Logic, and Data tiers are referred to as
R/3 in a three-tier architecture. SD, FI, and HR are just a few of the modules
that cover practically every corporate department.

mySAP – It is a collection of SAP products that includes SAP R/3, SRM, PLM,
CRM, and SCM in addition to SAP R/3.

4.) What is NetWeaver, exactly?

 Netweaver is a sophisticated infrastructure platform that allows all

mySAP suite items to run on a single Netweaver instance, known as
SAP Web Application Server (SAP WEBAs).
 Netweaver has the advantage of allowing you to access SAP data
through the network (HTTP protocol) or even on a mobile device.
 You can save money by using the SAP Client-side GUI to teach users.

5.) When it comes to metadata, master data, and transaction data,

what’s the difference?

Meta data refers to information about other data. It contains information as

well as MetaObjects.

Customer information, personnel information, and material information are

all examples of master data. This data resembles reference data more
closely. If a customer buys ten units of your product, for example, instead of
asking for the customer’s shipping address ten times, the same information
can be acquired from the Customer Master Data.

Transaction data refers to the specifics of everyday transactions.

6.) Is it possible to run a company warehouse without SAP R/3?

Yes, a corporate warehouse can be run without R/3 by simply moving

structures from enterprise data warehouse sources (ODS table, Infocube)
into incoming data files or utilising third-party tools to integrate flat files and
other data resources.

7.) What is the definition of a variable?

The variables are query parameters defined in the parameter’s query

description, which is empty before inserting queries into the workbooks.

8.) Define the many kinds of variables.

 Default type/user entry

 Path of Replacement
 Types of Processing
 Formulas
 Text
 Hierarchies
 Characteristics variable
 Hierarchy nodes

9.) Describe a handful of SAP’s flaws.

 It is pricey.
 It necessitates the use of highly qualified staff.
 It necessitates a lengthy deployment period.
 The user interfaces are quite complicated.
 It doesn’t say where the master data is stored.

10.) What is the difference between data mining and online

analytical processing (OLAP)?

OLAP: This is a database monitoring platform that understands the schema,

measurements, and composition facts.

Data mining: is a technique for examining data in order to find persistent

correlations and systematic links between variables.

11.) What are the three stages of data mining?

 Deployment
 Initial Exploration
 Model building
12.) What are the R/3 system’s many layers?

 Database
 Application
 Presentation

13.) How do you go about creating a table in the data dictionary?

 Domain registration
 Table creation
 Create data elements

14.) What does AWB stand for?

All data staging and processing procedures are controlled and maintained by
the Administrator Workbench in the business information warehousing
system.

15.) What exactly is Bex?

Business Explorer is referred to as Bex. It allows users to locate reports,

review data, access reports, and conduct queries. In addition, the Bex
browser allows workbook queries to save their specific responsibilities. It is
made up of the Bex Map, the Bex Analyzer, and the Bex Web.

16.) What part in BIW does ODS play?

An ODS object is used to contain debugged and consolidated transaction

records at the document level. A dataset that has been combined from one
or more data sources is referred to as a composite dataset. A Bex or an
Infoset query can be used to analyze this data collection. Within the same
device or across systems, a delta update can update the data in an ODS
object into InfoCubes or other ODS objects. ODS objects store data in
transparent, flat database tables, as opposed to InfoCubes’ multi-
dimensional data storage.

17.) What is the difference between the terms “domain” and “data
element”?

A Data Element is a link between the domain types and the table types.

The length, form, and permissible value range Q19 of the attributes are
defined by the domain.

18.) What is the difference between the parameters SET and GET?
You must first set parameter ID values in the global memory area before
retrieving them from the memory ID area. For example, in the case of an
online program, you must “Set” values from screen fields before “getting”
them.

19.) What exactly are ALE, IDOC, EDI, and RFC?

 ALE is used to enable Application Linking.

 RFC is a protocol that is used to call a remote function.
 Electronic data interchange is referred to as EDI.
 Intermediary documents are used in IDOC format.

20.) What exactly does BDC stand for? What is the total number of
BDC methods?

Batch Data Communication is abbreviated as BDC. The BDC techniques are

 Call Transaction
 Direct Input
 Batch Input Session

21.) When you say “one-time vendors,” what exactly do you mean?

In some businesses, it is impossible to create new master records for

vendors and trading partners. The use of a fictitious vendor code on invoice
input is possible with a one-time vendor. The data that would normally be
kept in the vendor master is directly entered on the invoice.

22.) What are the steps in the SAP Payment Run?

The following are SAP’s standard steps for executing the SAP Payment Run:

 Parameter entry: This includes, among other things, business codes,

vendor accounts, and payment systems.
 Proposal scheduling: the system generates a collection of invoices to
be paid.
 Individual payments are placed into the ledger during payment
booking.
 Printing of payment forms: Printing of payment forms.
 How do the’residual payment’ and ‘partial payment’ techniques of cash
allocation in a receivable account differ?
 Partially paid invoice: Assume invoice A456 is submitted for $100 and
the customer pays $70. It subtracts the half bill from the invoice,
leaving a $30 balance.
  Residual payment: During the residual payment, Invoice A456 will be
cleared for $100, and a new invoice line item will be created for the
balance of $30.

23.) What are internal tables, tables, tables with values, and
translucent tables?ent tables are all terms used to describe
different types of tables.

 It’s a typical data form object that only exists during the execution of
the application.
 The table would perform a field-level check.
 At the domain stage, the value table will be checked.
 Transparent tables will have the identical form in the dictionary as well
as the database, with the same precise details and fields.
 In SAP R/3, specify the presentation application and database servers.
 The application layer of the R/3 system is made up of the application
server and the message server. The application programmes in an R/3
system run on application servers. The presentation elements, the
database, and each other are all connected to the application servers
via the message server.

24.) In SAP, explain what a company is.

In SAP, a company is the highest corporate body with which the

organization’s financial outcomes, such as profit and loss statements and
balance sheets, can be produced. One or more company codes can make up
a single firm. All enterprise codes must have the same COA (chart of
accounts) and fiscal year, according to SAP.

25.) What’s the difference between SAP BASIS and SAP ABAP?

The programming language SAP ABAP is used for SAP customization, type
development, and reporting. The administration module, albeit SAP BASIS is
the foundation, is used to manage code changes, upgrades, database
management, and network configuration, among other things.

26.) What does it mean to have a “expanded star schema”?

The fact and dimensions tables make up the star schema. In addition, master
data tables are maintained in a separate table containing references to the
dimensional tables’ attributes. At the same time, the Extended Star Schema
makes reference to these many master data tables.

27.) What is the best way to write a BDC programme?

The following is the solution to writing BDC software:

  Convert legacy system data to a “Conversion” flat table file.
 To transfer the flat file to the SAP System, use “SAP Data Transfer.”
 Depending on the BDC type, call transactions or create sessions.

28.) Mention the main benefits of BW reporting over R/3 reporting.

The Business Warehouse collects and stores data using a database and OLAP
ideas, whereas the R/3 is set up for transaction processing. The same
analysis may be done in R/3, but it is much easier with a BW.

29.) Make a distinction between the two sorts of communication

services.

You should utilize two sorts of communication services to manage

communication:

Message Delivery Service: This service is used by app servers to send and
receive short internal messages.

Gateway Services: This service facilitates connectivity between R/3 and

external applications using the CPI-C protocol.

30.) Mention the cause codes for account receivables in SAP Master
Data Governance.

Reason codes are labels that can be applied to incoming consumer payments
to describe underpayments or overpayments. They are incompatible with the
“void reason codes” that are used to create outbound checks.