Case Study Master Data

3.1 Master Data

G/L Account Master Data

Create one chart of account per company.

  • ABC Motors International (local currency PHP)
  • AMI Marketing (local currency PHP)
Automatic Account Assignment must be maintained so that the G/L accounts are posted automatically for the inventory management and invoice verification.

3.2 Bank Master Data

Enter the house banks and the related bank accounts for the respective company codes.
Bank City  Bank Id Bank country ABA Routing No.
BPI Head Office BPI PH 11000430
Citibank Cebu Citibank PH 11040305

3.3 Customer Master Records

Maintenance of customer master records is decentralized. Sales department first creates the customer master and they establish the customer number to be used. The accounting department is then responsible to extend this record to include the financial information. One of the project team members is the Credit Manager.  He/she will determine the appropriate credit information for the credit controlling areas.

3.3.1 Account Groups

For regular customers create master records using external alphanumeric number ranges. For the one time customers create one master record for the Philippines and one for US. For the line item display for one-time accounts, sort by name and city.

Use field selection for the regular customer account group to control the following:
Region, Industry and Terms of payment fields are to be mandatory.
Sales district is to be suppressed. 

The following reconciliation accounts should be allocated to the individual customers:

  • PH receivable
  • PH receivable – one – time customer account
3.3.2 Incoterms

The following Incoterms are currently used by ABC Motors International and AMI Ltd.:

CIF    Costs, insurance, freight
CIP    Cost insurance paid
ZEX   Express Freight Chargeable

Payment Terms

The following payment terms are currently used:

PT01    8 days  5%
          14 days  2%
          21 days  net

PT02  14 days  3%
          30 days  2% 
          45 days  net

PT01 is used by the ABC Motors International head offices and payment term PTO2 applies to all other customers (including trade industry) 

3.3.4 Customers

The allocation of customers to sales organizations is determined by the assigned country and city listed in the customers’ master record. The customer listed below are interested in all product groups of ABC Motors International.

The following customer represents the Cebu subsidiary.  It is used for inter-company sales of finished goods:
Terms of 
AMI Marketing
101Yonge Street
Rosa Ave., Cebu City
Wholesale PT01

The following companies represent the customers (wholesalers and retailers) that ABC Motors International and AMI Marketing sells their products to:
Terms of 
Cycles Inc.
64 West Ave. Quezon City
Wholesale PT02
3 Wheels Inc.
2115 Mt. Pleasant Road
Contact: Mr. Mendoza 
Retail PT02
Bike’s R Us.
12667 East Ave, 
Quezon City
Contact: Ms. Nagin
Wholesale PT02
315 North Ave.,
Contact: Ms. Sy
Wholesale PT02

3.4 Material Master Records

Because of our commitment to quality, we have begun tracking changes to our key materials and products. We would like to see this practice continue through a change management facility that is built into the system.

We currently group changes by engineering/ design project numbers.

3.4.1 Finished Products
Material number Description
100001 500 cc Street Motorcycle-Black
100014 500 cc Motorcross motorcycle-Green
100025 750 cc Street motorcycle- Black
100030 750 cc Motorcross motorcycle-Green

3.4.2 Accessories

The product assortment includes accessories (trading goods) in number range 5. These items are only bought and sold and are not used in any way for production. The following materials are to be considered.
Material number Description
500020 Sissy Bar
500021 Screw Driver Grease
500022 Black Leather Riding Pants
500026 Lamp-Tiger eye Halogen
500099 Six pack “Old Sturgis” – Best Ale

3.4.3 Material Types

In ABC Motors International, the following material types are used, with the corresponding number ranges.
The material type “Bike” will have to be created. Bike should have the same functionality as a Material type HALB (semi finished).
Beginning of range End of
Cat. Ref
Finished products 100001 199999 External 0009
Bike 300001 399999 External 0008
Raw materials 200001 299999 External 0001
Operating supplies 400001 499999 External 0002
Trading goods 500001  599999 External 0005
Services 600001 699999 External 0006

3.4.4 Material Groups

For control and reporting purposes, ABC Motors International has decided on the following material groups:
Acc Accessories
Other Other
Cycles Motorcycles

3.4.5 Additional Information for Sales Department

The material master for finished goods is partially maintained. The sales department must maintain additional information. The maintenance consists of the following:

  • Minimum order quantities for accessories
  • Delivery plant
  • Loading group
  • Transport group
  • Storage condition
3.5 Vendor Master Records

Vendor master maintenance for trade vendors are maintained centrally by Purchasing Department while maintenance of non-trade vendor masters is maintained by Accounting.

3.5.1 Account Groups

ABC Motors International normally purchases from a few, regulated suppliers. Where circumstances warrant, the occasional use of additional suppliers is possible. By policy, ABC Motors International will deal with these occasional vendors using the system’s one –time vendor capability.

Account groups and number range information for vendors is in the following table:
Account group Description Number range
KRLV Local Vendors Internal numeric
KRFV Foreign Vendors Internal numeric
KROT One-time vendors  External alphabetic

Other than for the one-time accounts, ABC Motors International will use internal number assignment. In order to facilitate reporting and control, there should be two one-time vendor accounts: one for foreign and one for the domestic suppliers.

The field status for the account groups should reflect a mandatory field for payment method.

The following reconciliation accounts should be used as appropriate.

Local vendors payable
Foreign vendors payable- one- time accounts
US vendors payable
US vendors payable- one- time accounts

For the line item display for one- time- accounts, sort by name and city.

3.5.2 Vendors

The following vendor master records need to be defined.
Description Terms of payment
Valid currency
ABC Motors
1001 First Street
Contact: Ms. Martha Aldeguer
Laguna Tech distribution center  PT01
Wheels on the Go
2811 West Avenue
Quezon City
Supplier for the 
Roces Avenue Plant
Top Design Corp.
11453 Mockingbird Lane
Roces Avenue, QC 
Contact: Mr. Bert N. Erny 
This company deals with subcontract orders.
Frames, color, and logo are the materials to be provided. 
Cleaners, Inc.

14793 Sct. Tobias
Roces Avenue, QC 
Contact: Mr.  Jun Reyes

Cleaning Service for Laguna PT02
Paints, etc.
234 Northridge Park,
Chicago, IL
Contact: Todd Williams
Provider of paints and colors. PT01

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