Q 1 – What do you understand by SAP SD? What are the functions related to it?
Ans – SAP SD (Sales Distribution) is all about the process of order to delivery. Further, it is essential for executing all kinds of business procedures like shipping, selling, and billing of products. It is also used for –
- Sales orders
- Credit & Debit memo requests
- Inquiries and Quotes
- Sales return
- Contract & Scheduling agreements
- Rush orders & Cash sales
Q 2 – Is it possible to allocate different sales organizations within a similar company code?
Ans – Yes! It is possible to assign the same company code.
Q 3 – What is the prominence of the shipping process? And how can you define the modes of transport?
Ans – We all know that shipping is an essential part of any manufacturing company to ensure efficient customer services and delivery of products. The shipping is required for outbound delivery, planning and monitoring, post goods issues, picking and packaging of goods, and shipping communication.
Talking about the modes of transport, there are few ways of defining them –
- Visit IMG> Logistics Execution > Transportation > Basic Transportation Function > Routes > Define Routes > Define modes of transport > Click on ‘Execute’
Q 3 – Can you tell me about the difference between milestone and periodic billing?
Ans – Firstly, about the periodic, it is a full amount mentioned in each bill and continues until the contract period. In contrast, the milestone is about the partial amount, which is mentioned until the full amount is billed.
Q 4 – Can you explain organizational elements that create the sales area and their function?
Ans – Basically, the product groups are generally defined as a wide-ranging spectrum of products. In every division, it is possible to create a customer-specific agreement. Moreover, it is also possible to carry out statistical analyses and setting up separate marketing.
Q 5 – What is the co-relation between Credit Control Area and Company Codes?
Ans –A credit control is necessary for assigning more than one company code to more than one credit control area. Credit Control Area is present as an organizational unit used for specifying and checking credit limits for customers.
Q 6 – What are the methods used in delivery scheduling?
Ans – In general, there are two types of techniques available in delivery Scheduling. These are mentioned as –
- Forward scheduling – In this system, you can calculate the earliest possible date dependent on the material available date.
- Backward Scdg – This is about calculating the requested delivery date.
Q 7 – What is meant by the Outline Agreement and its different types?
Ans – Well, an Outline Agreement is defined as a long-term purchasing agreement done with the vendors. In this agreement, you will find general terms and conditions related to the material that is usually supplied by the vendors. Outline agreements have two types that are involved in the SAP SD course.
- Scheduling Agreement: It is known as an external agreement comprising the details of services, products, and delivery dates.
- Contract: The contracts usually exist between ordering parties and vendors over a specified period. You will find two types of contracts mentioned as value contracts and quantity contracts.
Q 8 – How you can use product proposals in SAP SD?
Ans – Product proposals are known as critical aspects whenever we discuss SAP SD. Such proposals are used in various companies needed for revamping the sales quotient by endorsing the products at the time of sales document processing. Moreover, these proposals can easily be mapped depending on the specific requirement of business partners so that they can easily match the market demands.
Q 9 – Can you tell the difference between an inquiry and quotation?
Ans – Firstly, the inquiry is the process that includes registration of customer’s probable requirements. On the other hand, the proposal is a kind of legally abiding document, which is offered to customers following the terms and conditions for delivering the service as well as the product.
Q 10 – How can you define Cross-company Stock Transfer?
Ans – Cross-company Stock Transfer is the method of delivering the sales order via another company code. Moreover, it is also essential for providing the material from a plant having one company code to plant in another company code.
Q 11 – What is meant by Term Consignment Stock?
Ans – Consignment stock is generally the material that is available on the company premises but does not add in the stock. It is only added when it is either marked as sold or sent to the production department.
Q 12 – What is Pricing and its different kinds of elements in SAP SD?
Ans – In SAP SD, pricing is mentioned as a process that generally includes the calculation of costs and prices for both external vendors and customers. Defining the pricing elements, these are the condition types present in an SAP system. The condition types are defined as a set of scenarios that are taken care of at the time when pricing is assigned to service or product. Some such elements are surcharges, prices, taxes, and discounts.
Q 13- What is the use of Copy Control?
Ans – Whenever any key transaction in sales is done, there is a required of sales document need to be copied to another document. Here, the process of copy control is usually incorporated. Several routines show how data should be copied using a source document to target the document.
Q 14 – Define something about Transferring the Legacy Data to System
Ans – As the name suggests, it is about transferring the legacy data to all new configured and installed systems. Legacy data is known as data like material and customer that is maintained by organizations before they install the ERP system. There are lots of tools available that are needed to transfer the legacy data to Systems such as Legacy System Migration Workbench Programs and Batch Data Communication (BDC).
Q 15 – Do you know about the transaction codes used for creating and changing customer master?
Ans – Here are some of the Transaction codes which are used for the same purpose.
– XD01: Used for creating customers.
– XD02: Required for changing a customer.
– XD03: Needed for displaying a customer.
– XD04: Essential for altering customer changes.
– XD05: Required for blocking a customer centrally.
– XD06: marking a customer for deletion.
– XD07: Changing a customer account group.
– XD99: Upholds customer maintenance.
– XDN1: Keeping the numbers ranging for a customer.
Q 16 – What are the steps involved in the underlying system for determining the tax number and tax classification?
Ans – There is a sequence of steps included in determining the tax number as well as tax classification. These are –
- In case the payer has a VAT registration number, it is easy to copy the tax classification and tax number from the payer. Further, this tax number is copied depending on the ‘country of destination relevant for taxes.’
- If step 1 is not able to apply or ship-to party has a VAT registration number, it is possible to copy tax number and classification from the ship-to party.
- Moreover, if step 2 also doesn’t work, then also tax number and tax classification can be copied from the sold-to party.
Q 17 – Is it possible to create material in company codes when working on Inter-Company Sales?
Ans – At the time of working on Inter-Company Sales, there is a transaction code MM01 required for creating materials relevant to the plant and sales organization. One can extend the material is someone is using a common server.
Q 18 – Can you list the essential elements involved in the customer master record?
Ans – Here, we are mentioning the necessary elements required for a customer master record.
- Company code data
- General data
- Sales area data
Q 19 – How can one create a Quotation?
Ans – As we know, the quotations are present as legal documents that are sent to the customers. There is information like the delivery of services and goods that are included in the quotation. For creating a quotation, one has to use the transaction code ‘VA21’.
Q 20 – How can you differentiate between Sales Document and Sales Activity?
Ans – Sales Document: This document is related to sales and is generally built in the SAP system for managing the complete sales process.
Sales Activity: The mentioned activities are classified as post- and pre-sales activities. They are used to improve the sales of any company.
Q 21 – Can you define the structure of a sales order?
Ans – Any inquiry coming from the customers’ side mostly comprise of one or more items containing the number of products. This quantity is further divided into business lines that have different sales parameters. It has seen that the items are generally combined in a hierarchy, and therefore, it is possible to create a difference between batches.
Q 22 – When can you use SAP credit memo and SAP return order?
Ans – Talking about the SAP credit memo, it is usually created based on a credit memo request. It can be generated at the time when you have to pay the customer. The return order is about receiving the returned goods coming from the customers. Hence, the sales department is responsible for creating return orders, and based on this return delivery document is created.
Q 23 – What is the name of Central organization required at the time of purchasing?
Ans – Purchase Organization is the key element used during the time of purchasing.
Q 24 – Define Sales Office, Sales Groups, and Sales Employees in SD module
Ans – Sales Office: Sales office is a geographical group that is created for structuring a sales team within an organization. The sales office can be assigned to one or more Sales Area.
Sales Groups: There is a staff of Sales Office that is divided into Sales Groups and further to Sales Employees. So, Sales Groups is a kind of group of persons related to the sales department working for numerous purposes.
Sales Employees: Sales employees are those who have personnel master records required for managing data of Sales employees.
Q 25 – Explain about Shipping Point and Loading Point in SD module
Ans – First coming to the shipping point, it is a point from where the team can ship the deliveries of products. Though, the subdivision of the shipping point is referred to as a loading point that means a manual entry in the header data of delivery according to customization.
Q 26 – Can you tell me what a division in the SD module is?
Ans – A division is present as a product group for a vast range of services. In sales organizations, there are lots of divisions that incorporate customer-specific arrangements.
Q 27 – Do you know what R/3 is?
Ans – R/3 is present as a three-tiered architecture, which is used by the system. There are three tiers mentioned as:
- Application server
- Database server
- Presentation server
Q 28 – Describe the role of ERP in any business environment
Ans – ERP (Enterprise Resource Planning) is called as a software package. It is designed especially for integrated management of numerous business processes like order placement, invoicing, inquiry, and billing. Though, it is much needed in manufacturing industries to accomplish the core business areas like finance and production. Due to the popularity of the ERP package, its functionalities can also be extended to cover the overall business management.
Q 29 – Have you heard about Quick Viewer?
Ans – It is available as a beneficial tool for creating reports in System. Furthermore, it is useful for creating reports without any help from programming. It is quite similar to ABAP Query.
Q 30 – Why is there a need for creating Z reports?
Ans – SAP has recognized to offer different reports in every module. In case if the standard reports do not comply with the business requirement, then there is a need to develop your reports. Z reports, also known as ABAP custom reports, can create any program that needs to start with Z.
Q 31 – What do you mean by Alternative Condition base value?
Ans – This indicates typically a formula required for a condition type to promote an alternative base value needed for the calculation of a value.
Q 32 – Tell something about Invoice correction?
Ans – Invoice correction is a kind of sales document (RK). It is a documented process showing a new method of processing complaints and issuing both debit and credit memos. It also allows the users to correct the price and quantity for more than one faulty item present on an invoice. The request for each invoice is made about the invoice. There are two items in each invoice correction request. The first one is the quantity and value copied from the given invoices. The second one is the debit item that shows the correct quantity and value.
Q 33 – Describe Sales organization, Distribution channel, and Division
Ans – Sales Organization: It is an organization unit involve in selling and distributing products, negotiating terms of sales, and accountable for truncations.
Distribution channel: As the name implies, the mentioned channel acts as a medium for materials or services to reach customers. It contains internet sales, retail, direct sales, and wholesale. The distribution channel can be assigned to one or more sales organizations.
Division: This is a wide-ranging spectrum of products.
Q 34 – What do you mean by ASAP methodology?
Ans – ASAP is all about streamlining the implementation process, and this can be done by offering methods, tools, templates, and accelerators. These are generally built on various SAP implementations. Further, this implementation is divided into 5 phases.
Phase 1 – Project Preparation
Phase 2 – Business Blueprint
Phase 3 – Realization
Phase 4 – Final Preparation
Phase 5 – Go-live and Support
Q 35 – How will you define Item Category?
Ans – In the field of SAP, the sales item category is considered to be very important. A company requires it to control the sales document flow while impacting the schedule line category. The item category put an affect n delivery and billing process.
Q 36 – How will you deal if there are multiple down payment items present in final billing?
Ans – There are specific steps required to be followed when there is a cleared down payment request is needed to be canceled. Such steps are also required to avoid the doubled down payment items.
- T-code FBRA is used for clearing.
- If someone wants to cancel the clearing needs, it can be done via t-code FB08.
- One can cancel the down payment request by VF11.
Q 37 – Explain something about Condition Supplement
Ans – When a company wants to offer a discount regardless of combination up till a certain period, this is known as Condition Supplement. The system, by default, provides discounts together with a base price.
Q 38 – Differentiate between Rebate and Discount
Ans – Discount: It is a general disc, which is usually applied in the business transactions frequently. It is available for all the customers.
Rebate is an agreement present between Sales Org. It is a kind of special discount, which is given occasionally. Thee customers can avail of this discount on reaching the sales volume within a time.
Q 39 – How can you explain Access Sequence for Header Conditions?
Ans – Access Sequence is a type of search strategy that is used for finding the correct condition record using the condition table.
Q 40 – Tell us about Partial Delivery or Backorder Processing?
Ans – Sometimes, there is a lack of material to complete the sales order. In such circumstances, a delivery date is given when the goods available are available before the delivery date. Thus, it is possible to deliver the goods before the arrival of the first delivery date. This process is known as Backorder processing.
Q 41 – You must have heard about the Bill of Material. What does it mean?
Ans – Bill of Material is a ubiquitous term used in Sales Distribution. It combines a group of materials with two products named as header level item and item level item. You can say that it is a list of raw materials, parts, intermediate assemblies, sub-components, and quantities required at the time of manufacturing.
Q 42 – What are the different partner functions available?
Ans – There are four types of partner functions available mentioned as –
- Ship to Party – Where a person received the goods.
- Payer – In this, a person pays the payment.
- Sold to Party – An individual who places the order.
- Bill to Party – A person who gets the bills.
Q 43 – Is it possible to delete Sales Order Numbers?
Ans – For your information, it is difficult to delete the sales orders once you saved them. One can either cancel the sale order or reject it.
Q 44 – Mention some of the influencing factors used in Account Determination for an invoice.
Ans – Here, we are mentioning some of the influential factors that you should also know.
- AAG of the customer.
- A/c key.
- Chart of A/c.
- AAG of material.
Q 45 – Why you should select SAP over others?
Ans – There are lots of technical reasons that make you implement SAP in your company as well. SAP is highly configurable, provides safe data handling, minimize data redundancy, maximum data consistency, and others. Thus, you can get the profit of sales like tight integration-cross function and purchasing.
Q 46 – How can you close the Backorders?
Ans – It can be done through an availability check.
Q 47 – What are the steps involved in assigning distribution channels to a sales organization?
Ans – The assignment ensures that the sales organization is capable of supplying the materials to customers via the distribution channel. The steps include in this are:
Q 48 – How you can customize Rebate processing in SAP SD?
Ans – We are mentioning steps followed for customizing the Rebate processing.
- Firstly, activating the rebate in customer master data.
- Activating the selling material in MM data.
- It is required to activate sales org.
- Activate the billing doc.
Q 49 – What do you mean by shipping points?
Ans – Shipping Point is defined as an organizational element that is answerable for shipping the materials and deliver to the customers.
Q 50 – Describe Transfer Order
Ans – In simple terms, a transfer order is a process of picking the order. Generally, the material is picked from the storage, loading area, and picking area.
The above-mentioned SAP SD interview questions and answers are best for the students who are looking forward to finding a job related to SAP.
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