What is the primary purpose of using a reference master data type?

The primary purpose of using a reference master data type is to reference an existing master data type. This allows for the establishment of relationships or links between different pieces of master data without duplicating the data itself. By utilizing a reference master data type, businesses can maintain a single source of truth for their master data entities, reducing redundancy and ensuring consistency across different areas of the IBP system.

Using a reference master data type improves data integrity and easier management since changes to the referenced data will automatically reflect where that data type is referenced. This is particularly important in integrated business planning processes where accurate and consistent data is crucial for making informed decisions. The ability to efficiently manage relationships between different data entities is essential in achieving operational efficiency and clarity in the planning process.