A collection of transaction records. 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 ...

Master files contain descriptive data, such as name and address, as well as summary information, such as amount due and year-to-date sales. Contrast with transaction file. See master data management.

The maintenance of the master file is not compulsory for every business, but as mentioned above, it is required where the arm's length value of their related party transactions exceeds the threshold.