In which scenario is a referencing relationship required from entity type E1 to entity type E2?

A referencing relationship is required in situations where entity type E1 serves as an attribute or a characteristic of entity type E2. This indicates that E1 cannot exist independently without the context of E2; rather, it is intrinsically linked to E2's existence.

When considering the relationship dynamics, if E1 is a required attribute of E2, it means that in the structure of E2, there is a dependence on E1 to provide meaningful information. For instance, if E1 represents a person's name, E2 might represent a person record; the name is an attribute that cannot be detached from its defining entity, making it essential for establishing the context required for E2.

This type of relationship ensures that there is a clear understanding of the instances of E1 in the context of E2, thereby supporting data integrity and organizational needs within the framework of SAP Master Data Governance. High-level data modeling often relies on such referencing relationships to maintain clarity and cohesion among data entities.