Why are master and transaction files needed in most businesses?
Rachel Davis
Updated on December 29, 2025
The data in transaction files is used to update the master files, which contain the data about the subjects of the organization (customers, employees, vendors, etc.). Transaction files also serve as audit trails and history for the organization. See master file for examples of typical master records.
What is a master file what is the purpose of having a transaction file?
A transaction file is a data file in which transaction records are stored which relate to entries in a master file. These kinds of files serve to isolate regular transaction activity from the master file information while allowing a database to tie the two together through a key reference.
What is master and transaction file?
Master file: contains records of permanent data types. master files are created at the time when you install yopur business. Transaction file: contains data which is used to update the records of master file for example address of the costumer etc.
What is Master file explain with an example?
A master file is the main that contains relatively permanent records about particular items or entries. For example a customer file will contain details of a customer such as customer ID, name and contact address.
What are main master files?
A. M. A collection of records pertaining to one of the main subjects of an information system, such as customers, employees, products and vendors. Master files contain descriptive data, such as name and address, as well as summary information, such as amount due and year-to-date sales.
What is the master file?
What are the types of master file?
Types of Drug Master Files (DMFs)
- Type II Drug Substance, Drug Substance Intermediate, and Material Used in Their Preparation; or Drug Product.
- Type III Packaging Material.
- Type IV Excipient, Colorant, Flavor, Essence, or Material Used in Their Preparation.
- Type V FDA-Accepted Reference Information.
What are the three main types of files?
Stores data (text, binary, and executable).
What is the role of master and transaction file in MIS?
A transaction file is used to hold data during transaction processing. The file is later used to update the master file and audit daily, weekly or monthly transactions. For example in a busy supermarket, daily sales are recorded on a transaction file and later used to update the stock file.
What are master and transaction files?
The data normally stored in journals in a traditional accounting system are examples of transaction files. They contain the activity data used to update the running balance listed in the subsidiary and general ledger master files. Batches of source documents are also examples of transaction files.
What’s the difference between master file and transaction file?
What is meant by master file?
What’s the difference between transaction file and master file?
Transaction file: contains data which is used to update the records of master file for example address of the costumer etc. Loading…
When to treat master data as transaction data?
The data that should be master data can be identified easily by the critical nouns in a business. In addition, master data is always involved with transaction data. Furthermore, if the number of elements in a set is very low, then the chance of treating that set as master data decreases.
What is the purpose of a transaction file?
