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Running SAP Master Data Governance on SAP S/4HANA, on SAP ERP on SAP HANA, or on a non-SAP HANA Database?

In recent SAP user group events, various attendees approached me asking about the role of SAP Master Data Governance in the context of SAP S/4HANA. To put it more precisely, people asked me, for instance, whether they’d go or stay with an SAP MDG on a non-HANA database, run SAP MDG on SAP HANA, or aim at SAP MDG on SAP S/4HANA.

I made the following statements from a product management perspective:

  • The role of SAP Master Data Governance as a master data hub for the enterprise does not change when you add an S/4HANA system to the landscape: The MDG hub replicating master data across the system landscape can be either based on SAP ERP or on SAP S/4HANA. And of course, an SAP ERP-based MDG can replicate data to SAP S/4HANA systems in the landscape. While we generally recommend to have the highest release version in place for an ERP-based MDG hub, this is not a mandatory requirement for replicating data to an S/4HANA system.

  • There is continued support for SAP MDG on SAP ERP and on non-HANA databases, which means that users are not forced to change the database on which MDG is running.
  • However, running SAP MDG on SAP HANA has benefits compared to any other database. These benefits include, for instance, the use/consumption of:
    • Advanced search and duplicate-detection provided by SAP HANA fuzzy search
    • SAP HANA information management services for standardization and matching for high-speed master-data consolidation
    • SAP HANA-based analytics providing real-time “insight to action” through reliable MDG process analysis (SLA compliance in change request processing)
  • According to SAP’s overall strategy of delivering the digital core with SAP S/4HANA, it is a no brainer that SAP MDG is on board. Consistent master data is a prerequisite to fully benefit from S/4HANA’s efficient business processes and powerful analytics. Equivalent to the deployment options in an SAP ERP context, SAP MDG can be co-deployed with an SAP S/4HANA system, or can be a hub just technically running on S/4HANA as its basis.
  • Following SAP’s overall strategy, the primary focus of upcoming MDG innovations is on SAP S/4HANA. As of now, the functional scope of the SAP ERP-based MDG 9.0 release is comparable with SAP MDG on SAP S/4HANA 1610. The only difference is that SAP MDG on SAP S/4HANA additionally provides a product-data quality remediation capability which the SAP ERP-based SAP MDG doesn’t. The functional gap is still small, but we expect it to get wider in the future.

For a quick answer; I’d use the following symbol from sports competitions:


In a nutshell, I’d say that in order to be on the competitive edge in the digital age, SAP MDG on SAP S/4HANA is clearly the way to go for new installations, while for existing implementations there is no rush for conversion.


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  • Request you to please confirm if "Embedded MDG in S/41610 has capability to connect to multiple systems as shown in above diagram.




    • Hi Monika,

      SAP MDG on SAP S/4HANA can be deployed as a dedicated master data hub or co-deployed on an operative SAP S/4HANA system. Replication techniques and capabilities are the same in both cases.



      • Hi Markus,

        Considering a case where MDG was freshly installed as HUB on S/41610 platform, and the operative ERP is still non-HANA, how do we bring the ERP customizing from the operative ERP to MDG ?

        What is SAP's recommended best practice?



          • Hi Markus,

            We are doing an S4 1809 Finance implementation with loading the master data from the old ECC system. Because of the time crunch, we are not implementing the MDG at this point. But after a year we are planning to enable MDG on S4 at the same instance.

            • What may be the challenge if we don't go with the MDG installation now and do at a later point?
            • When enabling the MDG at a later point how much of rework we need to consider? Any Data structure changes or data migration needed.


          • Hi Jose,

            while it's always better to get the data clean before, I now that time constraints can lead to an alternate approach as you mentioned. It's hard to give a rule of thumb here, that's why I'd recommend you to post this as a question in the SAP Community, allowing project experts and implementers to provide 1st hand expert input on this.

      • Hi Markus,

        Question based on your statement, what is the advantage or dis-advantage of co-deploying MDG on an operative SAP ERP or SAP S/4 HANA?

        Are there any factors in terms system upgrade or performance point of view that would need to consider for the Co-deployment scenario?



  • Hi Monika,

    we are running already projects with SAP MDG deployed on a SAP S/4HANA system. It works fine and we connect SAP and Non-Systems.



  • Thanks for the blog . If we are migrating from MDG 6.1 ( Co Deployed ) to MDG 9.0 ( HUB approach) , Does MDG 9.0 version  as HUb installation can be on EHP 7 ? Our ECC Operational HANA box is on EHP 7 (EHP7 for SAP ERP 6.0)

    • Hi Binoy,


      according to the Product Availablitiy Matrix MDG 9.0 requires SAP enhancement package 8 for SAP ERP 6.0.


      Kind regards,


  • Hi Marcus,

    I have few questions:

    Can MDG on S/4 Hana support with 80 million records master data records efficiently?

    Can MDG on S/4 HANA 2-3 million updates on regular basis using MDG mass processing/file upload?


    Thanks and regards

    Abhimanyu Singh


    • Dear Abhimanyu Singh,

      Being based on SAP ERP or SAP S/4HANA, SAP MDG is generally suited for operation of high data volumes. In high-volume scenarios, various parameters need to be put into consideration:

      • Detailed description of the scenario(s) to be applied (central governance or consolidation)
      • Data model complexity
      • Number of users
      • etc.

      Generally, hardware sizing is always crucial in this context. Please see details in the blog with info on MDG sizing.


      Best, Markus

      • Hi Markus,

        Thanks for the reply!

        I have another question . We are running MDG 8.0 as HUB on ECC. Now we need to  upgrade it to MDG9.0 on S/4 HANA.

        Do we need to have separate instance of S/4 hana and MDG switched on  and it will act as HUB? If yes, how can we migrate development done on MDG on ECC?


        Is there way to upgrade MDG 8.0 as HUB on ECC to MDG 9.0 as HUB on S/4 hana? FYI.. our existing DB is not HANA.

        Please suggest.

        PS: My take from below blog is new greenfield implementation.


        Thanks and regards

        Abhimanyu Singh


  • Hi Markus,

    We are trying to implement a governance landscape where MDG 8.0 on HANA (1511/ NW 7.51) as master data hub and we have S/4 Hana(1610, NW 7.51) as central finance system. We are trying to setup the webservice replication from MDG to CFIN.

    We are not able to setup yet and facing technical issues. Are these 2 versions are compatible ? SAP doesn't have any configuration guide specifically for this kind of webservice replication(till NW 7.4 available).


    • Hi Pinaki,

      I am not aware of any incompatibilities here. Please create a ticket, so that the experts can take a look at the issues.


      Best, Markus

      • Thanks Markus. I will do.

        One more question – Can we do a initial data load as specified in the configuration guide from central finance to MDG ? I am asking this question as the HANA version is different in different system. 

        • Hi Pinaki,

          Can you please provide tthe link to this guide, so that the Central Finance experts can get involved. I'm not the domain expert.


          THX, Markus


            Please go to "Setting Up Initial Load"


      I'd say the term "embedded" is misleading in this context, and I haven't used it in my blog, have I?

      MDG can be co-deployed on an operative ERP or S/4HANA system, or can be run as a hub based on a ERP or S/4HANA system. Terminology-wise we differentiate between "SAP Master Data Governance" ((i.e. ERP-based)) and "SAP Master Data Governance on SAP S/4HANA".


  • Hi Markus,

    I still struggle with the terminology and deployment modes.

    If I setup S/4 1610 do I have MDG available (e.g. AddOn) or is it a seperate instance running outside of the S4?

    What would be a reasons for choosing in an S/4HANA environment the deployment option of a dedicated master data hub?


    Many tahnks

    Best regards



  • Hi Markus,

    Thanks for opening up this discussion, it really is insightful.

    We have a MDG (7.0) installed over EHP6 ERP6 System (Non-Unicode)

    We are planning to move to S/4 HANA. I have few queries regarding the same:

    1.) So do we have to upgrade our MDG (7.0) Add and it happens automatically when using the Maintenance Planner.

    2.) What is the Path for MDG with respect to S/4 HANA? How to we move from MDG 7.0 to S/4 Compatible version?

    3.) Do we have to reconfigure MDG , once we are on S/4 ?






    • Hi Rajeev,

      I'd recommend to check the relevant S/4 Conversion Guide; (e.g. for S/4 1610, see this guide.

      The guide includes information about supported start releases for one-time conversions. Also, related to you question about reconfiguration, please check the simplification list for potential changes in data models. As this may involve reconfiguration aspects.

      In addition SAP MDG (central governance) has switchable business functions, so you may check which business function(s) need to be turned on in S/4HANA.



  • Hi Markus,


    I have question regarding SAP MDG for S/4 Hana, In my current landscape we have Hub deployment for SAP MDG 8.0  &  Our Productive  ERP system is EHP7 on Hana. Now we are planning to upgrade our ERP to S/4 Hana and need to use SAP MDG as co-deployed in S/4.

    Now i want to know how do i move my data/configuration from SAP MDG 8.0  to SAP MDG on S/4 Hana.

    Is there any standard practice or procedure available for this?


    Thanks in advance,


  • Hi Markus,

    We are implementing S4/HANA as Central Finance system with MDG Co-Deployed on

    S4/HANA. There will be multiple ECC systems connected to S4 HANA through SAP PI/PO.


    Have a few questions on our requirement to trigger customer data from ECC to MDG on S4/HANA:

    What is the best practice to trigger customer data from ECC to MDG on S4/HANA?

    Is it through PI/PO or any other approach.

    Please inform if there a best practice and configuration guide for this requirement.




      Hi Jay,

      in MDG-C / MDG-S there is a scenario called Client Maintenance. You therefore have to send customer data via SOA-Service for Business Partner to MDG. This can happen via direct replication or through PI / PO, your choice. Within MDG system in Data Replication Framework (DRF) configuration you then have to configure that incoming SOA messages from this source system are not directly persisted in the backend tables but automatically generate a consolidtion run (MDG 9.0 is therefore required!).

      Kind regards  Carsten

  • Hi Cartsen,

    Thank you for the inputs.

    Will explore on sending data SOA-Service for Business Partner through PI/PO and MDG 9.0.


    Thanks again.




    • Hi Girish,

      SAP MDG is offered on premise and in the private cloud, today.
      In the future, we also plan to leverage SAP S/4HANA Cloud and SAP Cloud Platform as the platform to extend MDM scenarios for consumption in the public cloud.




  • Hello Markus,


    Thanks for the swift response,  could you please let us know if any time frame ( say in next 6 months or so) for getting MDG on S/4 HANA cloud or the roadmap




  • Thank you for this excellent blog, Markus.

    Is it possible to split an embedded MDG installation into separate ERP and MDG systems?

    Very best regards


    • Hi Frank,

      Generally it is possible to go from co-deployment to hub deployment, but there are no out-of-the box switch modalities in place. It is project work and I’d recommend to involve consulting services from the SAP System Landscape Transformation group.




  • Hi,

    Please suggest is there the options for SAP MDG on S/4 HANA cloud ( Public/Private)

    If available is it possible to connect with other systems like SRM/CRM from SAP MDG S/4 HANA Cloud.

    Kindly suggest.

  • Hi Markus

    Thanks for a clarifying blog ?

    I have a couple of questions regarding the new S/4 HANA Business Partner concept model that is used in MDG on S/4HANA and MDG HUB (based on ECC):

    1. If I understand it correctly MDG on ECC does not support the new S/4HANA BP concept model but MDG as a HUB and MDG on S/4HANA supports the new S/4HANA BP concept model. Is that statement correct?
    2. What is the difference between the BP concept model in MDG on ECC and the S/4HANA BP concept model? (If I understand it correctly the “old” BP concept model in ECC also supports that one BP could be both a customer and a supplier?)
    3. What is the effort needed to upgrade from our today used LFA1 and KNA1 (not using BP) tables to the new S/4HANA BP concept model? Do we for example need to migrate both customers and suppliers at the same time or is it possible to do it in a step-wise approach, migrating suppliers first to production and then customer or do we need to migrate them both at the same time to production?
    4. Is it better/easier to migrate from KNA1/LFA1 to the “old” BP concept model in ECC first and then migrate to the S/4HANA BP concept model (2 migrations?) or is it better to migrate immediately from KNA1/LFA1 towards the S/4HANA BP concept model (1 migration?)?




    • Hi Göran,

      SAP MDG has always used the Business Partner data model with active Customer-Vendor-Integration (CVI) for back-end integration with ERP customer/supplier tables.

      Please also check the Conversion Guide together with the Simplification List for SAP S/4HANA for details on the conversion to S/4. 



      • Hi Markus

        Ok. Thanks for your answer. Does that mean that we could prepare our current ECC 6.0 system to migrate towards the already existing bp model (not using MDG) for our customers and suppliers before we upgrade to MDG S/4HANA? Then we don’t need to that migration when upgrading our ECC 6.0 system to S/4HANA? Does that makes sense or is it such a small task of migrating supplier/vendor master to the BP model that its better to wait for the S/4HANA upgrade?



  • Hello Markus,

    You mentioned that currently there is only a small  functional gap, being the data quality remediation (DQR) capabilites only available in S/4HANA.

    I have been looking for more information on data quality remediation:

    • More information on S/4HANA Data Quality Remediation in general.
    • Are there out-of-the-box S/4HANA applications available for Data Quality Remedation of standard MDG Data Models? If yes, for which Data Models?

    My search for information was unsuccesful, maybe you could give me more insight?

    Thank you in advance.
    Kind regards,

    Niels De Greef



  • Thank you for this excellent blog.

    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.

    P_S4FIN_1709 sample questions to get insight on actual exam, click here

    Thanks Again.


  • Hi Markus,


    Question, Can material consolidation(MDG 9) run on SAP ERP on a non-HANA DB? If the answer is yes, I assume the only con with NOT running MDG material consolidation on HANA would be performance/speed of consolidation processes? Could you please verify this?


    Many Thanks




      I would like to answer for Markus 😉

      If there is no HANA DB in place, you will have no "out-of-the-box" matching capabilities for a consolidation process. We deliver an example implementation for a material matching class, which can be used to have a custom-made matching based on search attributes. But this does not include fuzziness, scores, etc.

      This includes also performance for this matching step.


  • Hello Markus,

    Has anyone deployed SAP MDG co-deployed on S4/HANA along with Central Finance as well? The solution must also support additional ERP systems like ECC and non-SAP.

    Basically in a single client option, we have MDG, ERP as well as CFIN.

    I am able to configure MDG and do a POC, but I want to check prior to recommending for the customer.




  • Hi Markus,

    Excellent Blog & information.

    I have a situation where due to MDG HUB (MGD SAP HANA) .Through SAP transaction and customizing setting one can create Asset and Equipment together in S4, outside of MDG. I was told that standard SAP feature of creating Equipment along with Asset in S4 is not possible since Equipment created through MDG, can only be updated through MDG.

    Standard SAP process 1) Create Asset during PO 2) Create Equipment when Asset is created and link Asset and Equipment.

    The question is Can this equipment created in S4 be synced back to SAP MDG which is a HUB. IF so how? If not is there a work around available since we do not want to lose the standard SAP feature of creating equipment along with Asset.

    Thanks... SP

  • Dear Markus Ganser,


    Thanks in Advance.


    Currently client is not using MDG for Master Data and planning for implementing  MDG in S/4Hana 1909(only material master and BP).

    Please help me what are the steps required to implement MDG for material and Business partner, what are all the business objects need to activate.

    Client wants to implement MDG in same server of  S/4Hana.

    If you implement newly MDG what will be the impact on existing material and BP.

    It will be helpful if you provide any documention link are document(


    K. Pavan Kumar

  • hi Markus

    Can you pl share how MDG hub can be integrated with BW4HANA.

    Are there different approaches for Account, Profit center etc.

    I could find only this link:

    According to this document, we still need to go to S4 for extracting attributes / texts and only bring 0MDG_KEY_MAPPING from MDG. Is it recommended even if the data is created in MDG Hub?


    thanks so much




  • Hi Markus,

    I am trying to identify what Fiori Apps are available for Business Partner in S4 HANA where MDG is not activated other than below 3

    • Manage Business Partner Master Data
    • Manage Customer Master Data
    • Manage Supplier Master Data

    I am trying to Mass processing of Business Partners enabled the required config in MDCIMG but no success. Client is asking what are the available Fiori tiles for Business partner. I can search in Fiori light house but cannot identify from "Implementation information" tab whether that Fiori App will work only when MDG is activated. It just says S/4 HANA 1909 or whatever release is applicable.

    How to Identify what Fiori Apps are Supported for Business Partner like Data mining, data cleansing when MDG is not activated in the S4 hana system. The client has a 3rd party MDG system interfaced with S/4 Hana.


    No documentations are available from SAP. Please help.





      • Hi Markus,
        Thanks for responding. I understand that if MDG is not active in S4 HANA we only can use the following features
        1. Master data consolidation (tcode : MDCIMG)
        2. Master data mass processing (tcode: MDCIMG)
        What is the advantage of using Mass processing in Fiori tile vs the mass processing in backend via
        transaction MASS with object type = BUS1006(Business Partner) or XK99 for vendor or XD99 for customer.
        I am stuck with an issue in Master data mass processing and hence unable to identify benefits of this mass fiori tiles over the backend tcodes(MASS,XD99,XK99). Raised an incident with SAP.

        I see the following validations available for Master data mass processing
        a. Central governance check
        b. Execute BRF plus check
        c.Exclude unchanged records.

        given that MDG is not activated and it is native S4 Hana what validations are feasible from the above 3 options.

        3. Data quality management(under SAP Netweaver and under Address management and under SAPBusiness Objects Data Quality managment)
        a.Maintain Supported countries.
        My understanding is we have to buy postal directories. If so from whom clients should buy
        and interface it or does SAP provides it. Is it like a system we interfaced via RFC's.

        Does it only does address validation or even standardization. can you please clarify.

        B. DQM performs address duplicate check. Which I believe is out of the box. What is the difference between DQM performing address duplicate check vs TREX in older SAP CRM system which performs duplicate check.

        can you please guide or provide me good blogs as I don't see any good SAP document. Once again thanks for all the help.It gives me confidence to tell what is supported out of Native S4 Hana as there is no documentation available.



        • Hi Geetha,

          on S/4HANA without MDG you can use the app F2505 "Mass Maintenance" for mass changes.

          Here you can find the documentation:


          This is a limited version for "Mass Processing" without any configuration and data quality features. In comparison to transaction MASS/XD99, you have a nice Fiori user interface and background processing feature.

          Without MDG license, you have no access to other features. Using MDG, you will have the full feature set.


          Best Regards,




          • Hi Michael,
            Thanks for your response with the Appid. To be clear client is using a 3rd party governance tool and hence not activated MDG components in S4. They do not want SAP MDG.

            so If I understand, without SAP MDG I can only use F2505 "Mass Maintenace" and not "start mass processing" or "Manage mass processing". Is my understanding correct. It is equivalent to XK99 and XD99 and nothing else.

            I created an oss message as I was using start mass processing (Fiori App - F1686A)
            and It resulted in error "No Source System maintained for source record of process 56"

            and SAP has responded saying without MDG activation then I have to implement the BADI
            MDG_IDM_GET_LCL_SYSTEM to indicate the source system. I have responded back saying
            we do not have MDG and why should I specify source system given the import file is my source
            and the system in which I am importing is the target system.I am not consolidating from various
            systems and only then I need to specify the source system.

            Is it possible to verify the oss incident 237767/2021 and provide proper guidance. I belive you are
            from SAP.

            Also there would be Consultants like me who are not able to get proper information of what
            features are supported for Business partner if MDG is not activated in S/4 HANA.
            Is there a proper document from SAP which mentions what we can get if MDG is not activated like mass processing,duplicate check, cleansing etc.
            I am able to view tcode MDCIMG and all the config. this means MDCIMG is part of native S/4 HAna.
            The Fiori APP does not indicate a way to identify if MDG not activated that app is not applicable.
            I take this feedback as a channel to communicate to SAP (and also post in SAP Community) to provide such details in the fiori APP so that all SAP consultants will be benefited.


          • Hi Geeta,

            I can only kindly ask you to read the documentation for configuration of the "Mass Maintenance" app.


            And in this documentation it is also mentioned, that you have the implement the proposed BAdI.

            We are from MDG Product Management and we provide several information about the features of MDG (e.g. address cleansing, duplicate check). There is a set of Fiori apps existing for Consolidation, Mass Processing and Data Quality Management. Without MDG license you cannot use these apps.

            All these features are not available in Mass Maintenance app. It's just a mass change of master data. And this app can be used without an MDG license. Also the export and import using spreadsheet files is supported.

            I hope this helps,


          • Hi Michael,
            Thanks for iterating to read the document, it gives confidence when speaking to client. Now I see the BADI implementation also under SAP S/4 HANA under link Configuration of Mass maintenance

            I am reaching out to a developer as I received information from Basis that it is a standalone system.
            will provide feedback once BADI implemented.

            As part of the fiori APP F2505 I asked basis and they mentioned it is installed but they are not able to point out what tile it is in Fiori App.

            Is it still Manage Mass maintenance - Business Partners. (I tried to search with "Mass Maintenance" and only Manage Mass maintenance - Business partner is shown). if not what text should I enter in fiori search (after I launch fiori via /n/ui2/flp) to identify APP F2505. Appid F2505 in fiori documentation does not show the App launchers.
            attached the snapshot.

            please guide. And once again thanks for the help from you and Markus.


  • Hi,

    We are setting up SAP MDG stand alone latest 9.2 version. Other systems in the landscape are S/4HANA 2020, SAP GRC, SAP Ariba, SAP Successfactors. My questions is - do we need HANA DB for the MDG stand alone or is it ok to set it up on ASE and not miss out on any core functionalities.