Master data
Master data is relatively persistent information reused when transactions are processed, such as customer records, supplier details, account codes or employee pay rates. Transactions draw on that information, so an incorrect setting can repeat an error across many entries. Changes should be checked and authorised according to the system’s controls. Distinguish standing details from each individual invoice, receipt or payroll run.
Worked example
An incorrect employee hourly rate stored as $18 instead of $16 causes repeated payroll errors until the master record and affected pay calculations are corrected.
Common mistake
Reusing data saves entry effort but can spread a single setup error. A balanced journal does not detect a wrong pay rate.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | F1 | Supporting | July 2027–August 2028 |
| ACCA | F2 | Supporting | July 2027–August 2028 |
| ACCA | K1 | Supporting | July 2027–August 2028 |
Related terms
Also called: Standing data