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Author's profile photo Sabine Stellmacher

Automate Your Master Data Process With Derivation Scenarios in SAP Master Data Governance on SAP S/4HANA

Customers often ask me how automation can help master data stewards safeguard high-quality master data. One example of how we are tackling this challenge is the automation in the mining of data quality rules, which was introduced with SAP Master Data Governance on SAP S/4HANA 1909 and has evolved with each new release. ((

And now, with SAP Master Data Governance on S/4HANA 2021 Feature Pack Stack 01, we’ve taken an additional step forward by enabling derivation rules for the management of attributes of product and business partner data.

If you’re struggling with piecing together spreadsheets, ABAP code, customizing tables and master data management UIs to get automated processes running, our new Define Derivation Scenarios apps may be a remedy.

What can you expect?

  • Derivation rules are introduced to derive the value(s) of single or multiple fields. This includes the ability to set the derived value as a default value. Derivation rules can also create and update dependent entities (for example, create a storage location when a plant is created).
  • Derivation scenarios are provided to combine derivation rules into executable and manageable units. This facilitates the lifecycle management, configuration and data maintenance by business users.
  • Derivation scenarios can then be used in mass processing and consolidation, for example to automate the extension of materials to plants or to create customer data for a business partner.

How these features look in the system you can see in the following tutorial. The basic functionality of the app ‘Define Derivation Scenarios for Business Partners’ is shown. The shown derivation scenario extends general business partner data with general customer data, customer company code data and dunning data. It is explained step-by-step how you can add a new derivation rule to an existing scenario and apply it in a consolidation process.


These new apps for the definition of derivations follow the same pattern as the ones for validation rules. There is a central entry point for the management of your validations and derivations. Users contributing their business know-how collaborate with the IT people – and thanks to the user friendly SAP Fiori apps, the lifecycle management is in the hands of the business users.

For a comprehensive overview of what SAP Master Data Governance on SAP S/4HANA provides so far for data quality management, check out our How-to material.

We offer apps for every step of the data quality management process.


You can e.g. check it out in the SAP Cloud Appliance Library. with details given in Kefeng’s blog

Thus you can go forward to improve your master data quality and automate your master data processes.


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      Author's profile photo Markus Ganser
      Markus Ganser

      Hi Sabine,

      Thanks for posting! Automation is a key driver in master data management. Derivation scenarios are also explaind in this presentation about data quality management in SAP MDG on S/4HANA 2021.

      Author's profile photo Antonio Carlos Murayama
      Antonio Carlos Murayama

      Good blog.

      Is it possible to use derivation for material? in context of  CLASSIFICATION to fill all characteristics values from external services (web services, SOAP) like UNSPSC external services and providers for um specific class.

      Author's profile photo Sabine Stellmacher
      Sabine Stellmacher
      Blog Post Author

      Generally, derivation rule scenarios are supported for Business Partner and Product (Material) data (( Not all table of the data models can be taken as result tables yet. Derivation of classification data from external sources is a roadmap topic.

      Author's profile photo Wolfram Eisenhardt
      Wolfram Eisenhardt

      Classification is a real "big pain" topic with MDM at the moment...

      Author's profile photo Betsy Wheatley
      Betsy Wheatley

      Using the SAP Master Data Governance tool, you can automate your master data process by defining derivation scenarios. Derivation scenarios use a set of rules to derive one or more master data elements based on another master data element. They can be used to create new values for existing master data, or to create new master data records from scratch.

      Author's profile photo Steven Vazzano
      Steven Vazzano

      A short demonstration of the derivation functionality can be found at the following link.  We show how a spreadsheet with basic product/material data is uploaded to SAP Master Data Governance S/4HANA and extended out to multiple plants and sales organizations using business rules. In this example  some products are only produced at certain plants and planned by specific MRP Controllers.  The Material Group field is used to determine where to extend the materials.

      Author's profile photo Chinmay Mahajani
      Chinmay Mahajani

      Thank you for this blog.

      This is a good addition from SAP to improve the quality of data entry.

      Is this enabled only for Consolidation and Mass Processing?



      Author's profile photo Markus Ganser
      Markus Ganser

      It is also planned to be applicable in Central Governance.

      Author's profile photo Sivasankar D M
      Sivasankar D M

      As I understand, these centrally governed derivations currently only support Consolidation and Mass processing. Do you now when this would be available to be used in central Governance. [Or], with the existing framework, is it possible to define one derivation and used in Governance, Mass processing and consolidation processes?

      Author's profile photo Markus Ganser
      Markus Ganser

      See the SAP Roadmap Explorer. Planned to come with the upcoming release.

      Author's profile photo halis tuna
      halis tuna

      Dear Sabine,

      Thank you for the informative blog about innovations on MDG.

      I have one question:

      I'm working with MDG S/4HANA 2022. I noticed that the DQM derivation rules for fields(attribute) is working properly via Change Request process but he DQM derivation rules for tables(entity) is not working on Change Request via system method although it works successfully via mass and consolidation processing also.

      Is there any restriction for Central Governance?


      Thank you,



      Author's profile photo Sabine Stellmacher
      Sabine Stellmacher
      Blog Post Author

      Hi Halis,

      no, there is no restriction in the sense of creating new entries.
      Best regards, Sabine