Customer master file definition
/What is a Customer Master File?
A customer master file is a centralized database within an accounting or ERP system that contains the permanent, standing data associated with each customer. This file supports core processes including order entry, invoicing, revenue recognition, and accounts receivable management. Because it drives billing and cash application activity, it is typically subject to strong access controls and periodic review as part of an organization’s internal control framework.
What Types of Information are Stored in a Customer Master File?
Examples of the information contained within the file are as follows:
Customer name
Customer identification number. This may configured in a standard format, such as the first few digits of a customer’s name, followed by a numeric code - such as SMITH001. This makes it easier to locate customer names in the database.
Customer address
Contact name and phone number
Sales representative name
Customer tax identification number
Customer credit limit
Customer credit score
Customer payment terms
Customer ship-via settings
Past due notification flag
Monthly statement flag
Taxable flag
Tax exempt ID number. This ID number is used to block any sales taxes from being billed to the customer, and is derived from a tax exemption certificate forwarded to the company by the customer.
The information contained within this file is used to automatically populate fields in new transactions, such as customer sales orders. Access to this file should be restricted, in order to preserve the integrity of the stored data.