Business enterprises need to maintain a centralized database about their customers, quotations offered, customer agreements, history of the orders delivered, credit limits offered, etc., as a single version of truth in a central online repository. The process of maintaining this data is called Master Data Management or MDM.
MDM is important as it allows to track the invoice payments received in time and payment receivables that are defaulted. It provides high visibility about the payment outstandings and the Day Sales Outstanding (DSO). It maintains the references of orders delivered, payments received, changes to contracts, positive and negative changes to credit limits, etc., during the customer lifecycle.