This isn’t a very comforting message the first time you see it:
It’s pretty simple to resolve though. The problem is that the MDS application (product) and repository (database) are on different versions and the repository needs to be upgraded. This is usually the result of a service pack being deployed to SQL Server.
1. RDP to the MDS application server and select “Master Data Services Configuration Manager”.
2. In the Configuration Manager, select “Database Configuration” on the left.
3. You should see the error below in the the Database Configuration window.
4. Select “Upgrade Database…”.
5. Select “Next”.
6. Depending on the size of the repository, this may run for several minutes.
7. When the upgrade is complete, there will be a “Success” message under “Status”. Click “Finish”.
8. Your repository upgrade is complete.