SAP SD Interview Questions
SAP SD Interview Questions
Q. What is transfer order?
Transfer order is created for picking the goods in warehouse management. Transfer order contain
- Material Number
- Quantity to be moved
- Source storage bin to destination storage bin.
Through this transfer order picking list generated.
Q. What are the fields in pricing procedure?
There are 16 fields that are given below:
- Condition type
- Alternative calculation type
- Alternative condition base value
- Account key
Q. What are the Standard output types in SD?
BA00 for order LD00 for delivery RD00 for billing and RD03 for Cash sales.
Q. What is Condition type?
Condition type is a pricing element such as discount,freight,surcharge.This are used in pricing procedure to represent condition record.
Q. What is difference between delivery document & scheduling?
Delivery document is an electronic document where store when how much quantity of materials and where the materials should go ? on the other side, scheduling represent when materials will be delivered in that case backward scheduling and forward scheduling is used.
Q. How is item category determined?
In general item category determination is happened through sales document type+item usage+item category group+higher level item category +default item category
In the creating from reference document item category determination is happened from copy control where source item category to target item category.if it is not maintained ,item category determination is happened though normal determination like sales document type+ item usage+item category group + higher level item category+default item category.
Q. What is Extract used in condition tech. in pricing?
Condition table+Access sequence+Condition type+pricing procedure=condition technique. The above extract is used to find suitable condition record.
Q. What is the difference between plant and storage location?
A plant may be delivering plant and production plant and storage plant. In Sales and Distribution, since plant is assigned with sales organization and distribution channel, it is called delivering plant.
Q. What is Product Hierarchy?
Let’s take a simple example. Here is an example of my family tree.
What I am trying to do here is show my family tree in a hierarchical manner. And the parameter I am using to depict the hierarchy is “lineage”. Similarly, companies use hierarchy to categorize products. Say a computer company like Dell, would divide their products like below.
This pictures shows categorization of their products via the “type of product” – Desktop vs laptop vs servers etc. Similarly, you could have multiple levels of categorization based on any number of characteristics. A way to hierarchically categorize products is called as “Product Hierarchy”.
Now, where do you set the product hierarchy? It is set in the Material master -> Sales View.
Q. Where is Product Hierarchy Defined in SAP?
Product hierarchy is defined in SPRO and the transaction for that is V/76. Product hierarchy is alphanumeric 18 character string. Each character is alphanumeric – typically numerical values are used as we can increment on them.
The product hierarchy that comes right out of the box is divided into 3 levels. The first level is 5 characters, second level is 5 characters and the third level is 8 characters, which in total are 18 characters. And that is how product hierarchy is structured right out of the box in SAP.
Let’s take an example of the same PC manufacturer. He has desktops, laptops and servers. The five characters for the first level of the desktops is say (00001), laptops is (00002), servers is (00003). There are five characters in the first level.
Underneath the first level there could be further categorization like gaming machines, corporate machines and regular machines – Say 0001 is for gaming machines, 00002 for corporate machines and 00003 for regular machines. We can use whatever terminology we like, it doesn’t matter. Under corporate, say there are so many different models like model 1 (00000001), model 2 (00000002).
Now if I want to tell the product hierarchy of model 2, we have to start all the way from the beginning. The first level is 00002, the second level is 00002 and the third level is 00000002. So now the product hierarchy associated with model 2 is 000020000200000002. And similarly you can define how product hierarchies will be given to each of these products based on where they stand in hierarchy first level, second level or third level.
Q. What is Material Group?
Let us take an example of a retailer who is selling a whole bunch of products (say electronics, household, clothing etc).
Reporting – The CEO, CIO, Sales manager wants to know the answer to a question say – What is the total sales of electronics this month? Or what is the year on year growth in the clothing division ? This is an example of an “ANALYTICAL” question.
Classification – Other actions are to say run a 10% discount on all electronics or run a free shipping on all clothing with a sales value >150$. This is an example of an operational requirement – meaning day to day operations.
If a company (say Walmart) has thousands of products, you have to identify that these belong to Electronics division or clothing division – only then you will be able to do any operational or analytical operations as shown above. So, a material group is a means of classifying or tagging a material for operational or analytical reasons.
Q. When to use Material Group vs Product Hierarchy?
Take the same retailer and he sells electronics, clothing and so on.
In clothing, there is designer wear, regular clothing and then say sportswear. Say designer wear does a revenue of $100 M, regular does $50M and sports does 50 $50M. What is the total revenue in clothing? 100+50+50 that’s 200 million.
Now you see that when you put things hierarchically you can do a “ROLL UP”. Where you roll up revenues, roll up costs or profit margins any common parameter can be rolled up towards next highest level. This is not possible when you have a flat structure.
So both material groups and product hierarchy are a logical way of grouping materials. So what’s the difference? The relationship between one product and the other can be specified in Product hierarchy whereas Material Groups is flat. Product structure typically is a more intuitive and a natural way to group these products together that would result in much better business decisions when you put things in hierarchy. Whereas Material Group on the other hand is flat, there is no relationship between one Material Group and the other, and if there is any you would have to explicitly specify it in your coding or reporting.
Nevertheless both Material Groups and Product hierarchies are used in companies. Material Groups are simpler because you don’t need to put them in hierarchy on the other hand Product hierarchies are a little complicated, but they serve a purpose.
Q. What is one-time Customer ?
You see this term tossed around a couple of places and you wonder sometimes what’s a one time customer? A one time customer is a customer account group that’s used to represent a customer in reality just once.
Take a retail scenario like Walmart – Walmart has so many point of sale solutions – “POS”. There could be thousands of them and all of them are creating transactions in SAP. Each of this customer, like you and me who would go to Walmart and buy stuff – you don’t need to maintain a ton of information about me, say I just go, give Walmart my card, pay for my goods and then go away – that’s it. Walmart doesn’t bother too much about my name, neither does it bother about my shipping preferences or my tax classification – none of that stuff that you typically maintain in a customer master.
So why maintain a separate customer master for me ? It is really not necessary. Also in a day say Walmart does, millions of transactions and Walmart doesn’t need to be creating millions of customer’s right? So in situations like this (retail is one scenario), wherever you need a customer master to do a transaction , but in that transaction the details of that customer are not really that important, then you use what’s called as a one time customer.
SAP already provides a standard customer account group for that and that is “CPD”. Just like the way 0001 is sold to or 0003 is ship to, CPD is a standard customer account group provided by SAP. So if you create a one time customer using the CPD account group say 2000, that’s the same customer that you use for every transaction – Say you go to VA01 and use customer 2000 to create an order, SAP will immediately ask you for an address. Then you overwrite the address if necessary, if not you can customize it in such a way that you don’t even need to overwrite the address and then you put the rest of the materials details and complete the transaction.
Order types, Item Categories and Schedule Lines
Q. What is a Rush Order?
A Rush Order is when the customer is really in a rush to get his goods. In terms of SAP, the delivery has to happen immediately. As soon as the goods are shipped the customer will be invoiced.
Q. List the SYSTEM modules that are included in the finandal application component.
The following SYSTEM modules are included in the financial application component:
- FI—Financial Accounting
- EC—Enterprise Controlling
- IM—Investment Management
- PS—Project System
Q. list the SYSTEM modules that are included in the human resource application (Human Capital Management) component.
The following SYSTEM modules are included in the human resource application component
- PA—Personnel Administration
- PT—Personnel Time Management
Q. List the SYSTEM modules that are included in the logistic application component.
The following SYSTEM modules are included in the logistic application component
- SD—Sales and Distribution
- MM—Materials Management
- PP—Production Planning and Control
- LE—Logistics Execution
- QM—Quality Management
- CS—Customer Service
Q. List the components the SD module consists of.
The SD module consists of the following components:
- Basic Functions and Master Data in SD Processing (SD-BF)
- Pricing and Conditions (SD-BF-PR)
- Extra Charge (SD-BF-EC)
- Availability Check and Requirements in Sales and Distribution
- Credit and Risk Management (SD-BF-CM)
- Material Sorting (SD-BF-AS)
- Output Determination (SD-BF-0C)
- Sales (SD-SLS) o Scheduling Agreements for Component Suppliers (SD-SLS-OA)
- Customer Service Processing (SD-SIS-OA)
- Foreign Trade/Customs (SD-F1) o Billing (SD-BIL)
- Payment Card Processing (SD-BIL-IV)
- Sales Support: Computer-Aided Selling (CAS)
- Electronic Data Interchange /IDoc Interface (SD-EDI)
- Shipping (LE-SHP)
- Transportation (LE-TRA)
- Reports and Analyses (SD-IS-REP)
- Business Package for Internal Sales Representative
Q. What is the purpose of transaction code in SYSTEM?
The transaction code is the short path to reach a specific screen in SYSTEM. Instead of going through the routine menu, you can enter the Transaction Code and then press “Enter,” which would directly take you to the specific transaction. For exam-ple, you can access the VA22 transaction code to reach the Change Quotation screen. However, the VA01 transaction code is used to create Sales document in SYSTEM.
Q. What is meant by match code in SYSTEM?
The comparison key that helps you to find the key of a specific database record, depending on the field value entered in the record, is known as match code. On the basis of the match code, the system then displays a list of records from which you can select the appropriate one.
Q. Explain the three main areas of customer master data.
Customer master is a part of the SD module and forms the basis for customer-related transactions. It is divided into three areas:
- General Data—It is used for the maintenance of general customer details such as name, address, phone/fax nos., and so on.
- Sales Area Data—It is used for Sales-related data maintenance.
- Company Code data—It is used for accounts-related data maintenance.
Q. What is the purpose of Implementation Guide (IMG Menu) in the SYSTEM?
The Implementation Guide (IMG Menu) is used to collectively group the areas that must be configured and customized, and form a basic structure of an organization in the System to run.
Q. How will you maintain a company code in SYSTEM?
To maintain a company code, navigate the following menu path:
- Customizing Implementation Guide (MG Menu)). Enterprise Structure > Definition > Financial Accounting > Edit, Copy, Delete, Check Company Code.
Q. What do you mean by Enterprise Resource Planning (ERP)?
ERP is a way to integrate processes and data of an organiza-tion into a single system to provide easy access and workflow in an organization. It refers to the way in which large organi-zations efficiently plan to use resources to their fullest.
Q. List the advantages of implementing an ERP system in an organization.
The advantages of implementing an ERP system in an organization are as follows:
- Various processes and workflow of an organization are integrated in a single system.
- Efficient utilization of resources in an organization.
- Ability to easily share organizational data across different departments.
- Improves efficiency and productivity levels.
- Lower costs
- Better customer service.
Q. Specify the role of the Sales and Distribution (SD) module in an ERP system.
The SD module is an application module for supply-chain and operational performance management, and provides sup-port to customers. This module is integrated with the Material Management (MM) and Production Planning (PP) functional modules. It also allows organizations to input sales price of products for customers and check for open orders.
Q. Explain all modules in the system.
The modules in the system are as follows:
❑ Financial Accounting (P1)—Regulates books of record includ-ing general ledger, accounts payable and receivable.
❑ Controlling (CO)—Deals with the cost and management accounting in an organization.
❑ Asset Management (AM)—Manages and tracks the value of assets in an organization.
❑ Project Systems (P5)—Manages large or small projects in an organization.
❑ Human Resources (HR)—Manages data and activities of human resource or Human Capital Management in an organization.
❑ Plant Maintenance (PM)—Manages and maintains plant equipment, such as machines, in an organization.
❑ Materials Management (MM)—Maintains material-related data, such as material purchase and inventory.
❑ Quality Management (QM)—Maintains quality systems in an organization.
❑ Production Planning (PP)—Maintains comprehensive planning for production in an organization.
❑ Sales and Distribution (SW)—Maintains sales- and distribu-tion-related data in the system, such as customer master, pricing, distribution channel, product line, and various aspects of sales and distribution.
❑Cross-Application (CA) — Manages workflow, workplace and various cross-applications in an organization.
Q. What are the application areas of the R/3 system?
Application areas of the R/3 system are also called functional areas or functional modules. The following are the applica-tion areas:
- Sales and Distribution
- Human Resource Management
- Production Planning
- Fixed Assets Management
- Material Management
- Production Planning
- Financial Management
- Industry Solution
- Plant Maintenance
- Quality Management
- Project System
Q. What are the advantages of the R/3 system?
The following are the advantages of the R/3 system:
- Functionality—Provides software solutions that cover all the commercial process and transactions used in an organization.
- User-friendliness—Provides a uniform graphical user interface for all application areas for all users.
- Flexible structure—Provides flexible systems structure, as flexibility is an important aspect in every department.
- Real-time integration—Provides all the information on the basis of real-time scenarios.
- Enterprise-wide integration—Provides integration among all the modules in a system.
- Three-tiered architecture—Provides enterprise-wide and three-tiered architecture that includes presentation, application and database application.
Q. What is SAP SD? What are the primary functions of Sales and Distribution?
SAP SD handles all the processes of order to delivery. It executes the business processes used in selling, shipping and billing of product and services.
- Inquiries & Quotes
- Sales Orders
- Sales Return
- Contract & Scheduling Agreements
- Credit & Debit Memo requests
- Rush Orders & Cash Sales
- Back Orders
Q. What is the organizational structure in sales and distribution?
The organizational structure in sales and distribution is
- Sales Organization
- Distribution Channel
- Sales Office
- Sales Group
Q. Explain what is the difference between milestone and periodic billing?
- Periodic: Full amount in each bill till contract period
- Milestone: Partial amount in each bill till full amount is billed
Q. Explain how shipping point is determined?
Shipping point is determined by,
Shipping Conditions + Loading Group + Delivery Plant = Shipping Point
Q. Explain how you can assign distribution channel to Sales Organization?
To assign distribution to sales organization in SAP, you have to follow the path
SPRO (SAP Project Reference Object) >IMG >Enterprise structure >Assignment > Sales and Distribution > Assign distribution channel to sales organization
Q. Mention what are the Sales Document types in SAP? What is the configuration step to define sales document type in SAP SD?
The Sales Document types available in SAP are
- Credit Memo Request
- Debit Memo Request
- Standard Order
- Returns, etc.
Configuration steps for SAP SD
IMG Menu Path: SPRO > IMG > Sales and Distribution > Sales > Sales Documents > Sales Document Header > Define Sales Document Type
Q. Explain what is condition types? What is the path to define condition type in SAP for pricing?
The representation of certain aspects related to your daily pricing activities is referred as condition types.
The path for condition type for pricing is
SAP IMG path: SPRO > SAP Reference IMG > Sales and Distribution > Basic Functions > Pricing > Pricing Control > Define Condition Types
Q. Mention what is the Reversal PGI? Can you cancel the PGI and mention the transaction code for PGI?
PGI or Post Good Issue is done to keep a record of available goods in stock after the goods are delivered. Good issue transaction cannot be cancelled but can be reversed.
The transaction t-code for reverse PGI is VL09. Partial quantity reversal is not possible, in the delivery document you cannot reverse the PGI for one item/ partial quantity.
Q. Explain what is the difference between SAP credit memo request and SAP Credit Memo?
SAP Credit Memo (T-code VF01) is created on the basis of credit memo request (T-code: Va01). Credit memo request is generated when you have to pay to the customer. (Excess bill or damages or change in the price).
Q. When would you use a SAP Return Order and SAP Credit Memo?
SAP Return Order is carried out when customer returns any previously purchased products and requires a credit or money back. While credit memo is when the customer is credited without returning any goods.
Q. Explain what is SAP Posting Period? What is the transaction code to open and close posting period?
SAP posting period is to make sure that posting period for the business sales order is aligned with financial posting date, which means when financial accounting is ready for closing and proceed with the payment.
The transaction code to open and close posting period is S_alr_87003642
Q. Explain what Copy control is and when Copy Control transition can be done? In what manner Copy Control transition can be done?
In SAP SD, the process of copying data from the source document to the target document is done by Copy Controls. They consist of program referred as routing that determines how the system will transfer the data. Copy control could be useful for the end users who don’t want to repeat the control parameters from order- to delivery- and then billing.
Copy control can be done in following manner:
- Sales document by sales document
- Billing document by sales document
- Sales document by delivery
- Sales document by billing document
- Delivery by billing document
Q. What are the three levels that copy controls are set up? And what are the transaction codes through which it could be done?
At three levels of sales order copy controls are set up Header level, Item level and Schedule line level.
- VTAA: from sales order to sales order
- VTLA: from sales order to delivery
- VTAF: from the billing document to sales order
- VTFA: from sales order to billing document
- VTFL: from delivery to billing document
- VTFF: from the billing document to billing document
Q. Explain how you can include condition type in the pricing procedure?
To include condition type in the pricing procedure, you have to follow the pathway
Basic Functions >Pricing >Pricing Control >Define and Assign pricing procedure and then select “ Maintain pricing procedures” after that select pricing procedure and then “Control Data” and add your condition type to the pricing system.
Q. Explain what is Proforma Invoice and what are the types of it?
Proforma invoice is a reference doc for import and export negotiations. The standard proforma invoice doc types are
- With reference to order – F5
- With reference to delivery- F8
Q. Mention the transaction code used to create a return delivery?
Transaction code is used to create a return delivery is T/C VA01 with standard order type RE, while return delivery is T/C VL01 with return delivery doctype LR
Q. Mention what are the two places where you need to configure CIN (Country Version India)?
The two places where you have to configure CIN is Financial Accounting > Tax on sale and purchase, and other is Logistic General -> Tax on Goods Movement
Q. Explain what is the difference between rush order and cash sales?
- Rush Order: Order delivery will be done on the same day while billing will be done later
- Cash Sale: Billing and order delivery will be done on the same day
Q. List out the five features you can control for the sale document type?
For sale document type the five features you can control is
Q. Mention what are the techniques available in delivery Scheduling?
The techniques available in delivery Scheduling are
- Backward Scdg: The system calculates requested delivery date
- Forward Scheduling: The system calculates the earliest possible date based on the material available date