Define master data and transaction data in AIS and explain their relationship.

Define master data and transaction data in AIS and explain their relationship.

• A. Master data are core entities (customers, vendors); transaction data record events related to those entities linked to master data.
• B. Master data are transactional events; transaction data are customer records.
• C. Master data are changes to data structure; transaction data are logs.
• D. Master data and transaction data are identical concepts.

Answer: (A)

In AIS, master data are the stable reference records that describe the core entities you work with—customers, vendors, products, accounts, and similar entities. Transaction data are the records of business events that happen over time—sales orders, invoices, payments, shipments, and other activities—that capture what occurred, when, and with which entities. The relationship is key: each transaction uses identifiers that link back to the corresponding master data (for example, a customer ID on a sales order, or a product code on a shipment). This linkage provides context for the transaction, so you know who was involved, what was exchanged, where, when, and at what amount. Master data remain relatively stable and are maintained separately, while transaction data accumulate over time to give a complete history of business activity.

In AIS, master data are the stable reference records that describe the core entities you work with—customers, vendors, products, accounts, and similar entities. Transaction data are the records of business events that happen over time—sales orders, invoices, payments, shipments, and other activities—that capture what occurred, when, and with which entities.

The relationship is key: each transaction uses identifiers that link back to the corresponding master data (for example, a customer ID on a sales order, or a product code on a shipment). This linkage provides context for the transaction, so you know who was involved, what was exchanged, where, when, and at what amount. Master data remain relatively stable and are maintained separately, while transaction data accumulate over time to give a complete history of business activity.