SAP ERP Interview Questions

Go through these top SAP ERP interview questions and answers to achieve your dream job in SAP ERP. We have compiled these SAP ERP Interview Questions on topics like SAP R/3, SAP IDES, Business KPIs, OLAP, Data Warehouse, etc.

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SAP is a major ERP software package that is helpful in handling the company’s resources. SAP represents the name of the company and also the name of ERP software. SAP builds different software solutions for customer relationship management and business operations management. The main benefit of using SAP as an ERP system is that SAP has high integration level among its applications which assures data consistency across the company and system.

So, SAP has become a highly-paid specialization and a well-paid and rewarding career for freshers and experienced professionals. This SAP ERP Interview Questions and Answers blog will cover all the most frequently asked SAP ERP Interview Questions with inline answers.

Top 10 Frequently Asked SAP ERP Interview Questions

  1. What is SAP?
  2. Name different types of SAP ERP Products.
  3. Define Extended Star Schema.
  4. What are the advantages of an ERP System?
  5. Name different kinds of Info Cubes.
  6. Explain Pooled Tables
  7. What are general transport errors?
  8. What is the difference between Data Mining and OLAP?
  9. Describe the Extractor
  10. Describe Open SQL vs. Native SQL

Basic SAP ERP Interview Questions

1. Define SAP ERP

SAP ERP Refers to the Enterprise Resource Planning suite. It is an incorporated computer-oriented system utilized for managing an organization’s resources. It assures smooth information flow among different departments of an organization and handles workflows.

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2. What is SAP?

SAP refers to Systems Applications and Products in Data Processing. SAP was established in 1972 by Hopp, Plattner, and Hector and is Germany-based. SAP is the company name and also an ERP product. At present, SAP is NO.1 vendor in the ERP industry. It has more than 75,000 clients in 120 countries.

3. Explain “Business Content” in SAP ERP?

Business Content is the collection of the SAP-defined objects that exist in the delivery section. It offers pre-configured data models as per the metadata.

4. Mention different companies that provide ERP packages?

Following are the different types that offer ERP packages:

  1. SAP
  2. PeopleSoft
  3. Siebel
  4. BAAN
  5. JD Edwards
  6. Oracle

5. Why SAP ERP?

Over the other ERP packages, we choose SAP ERP because it is extremely secure, immensely configurable, max data consistency, min data redundancy, and data handling. Along with these features, it also helps us to handle the economics of sales like tightly integrated cross-functions and purchasing. 

6. Name different types of SAP ERP Products?

Following are the different SAP ERP Products

  • 1mySAP: mySAP is a group of SAP products that includes SAP R/3, PLM, SCM, CRM, and SRM.
  • SAP R/3: It is the modern version of SAP R/2, and it is the leader in ERP. R/3 refers to three-tier architecture. The three tiers are 1) Logic, 2) Data, and 3) Presentation tier. It contains different modules like FI, SD, HR, etc., which cover all the departments of the enterprises.

7. Describe Metadata, Transaction Data, and Master Data?

  • Transaction Data: This data is associated with regular transactions
  • Master Data: The master data is critical business data like Employee, Client Information, Materials, etc. It will be like reference data; for example, if the client wants 30 units of the product, rather than asking the client for his shipping details 30 times, the same can be retrieved from the client's master data.
  • Metadata: It is data about data and explains the structure of the metaobjects or data.

8. Define Extended Star Schema?

A Star Schema contains fact tables and dimension tables. The master data associated tables are stored in individual tables, which are associated with the dimension tables' characteristics. These individual tables for the master data are called Extended Star Schema.

9. Explain briefly about Bex?

Bex is defined as Business Explorer. Bex enables the user to analyze the information, locate the reports, execute the queries, and can view the reports. We can save queries in the workbook to their corresponding roles in the Bex browser. It contains the components like Bex Map, Bex Web, and Bex Analyzer.

10. Why do we Implement an ERP System?

ERP software will integrate every department and function of an organization into a single system that can service the departments' requirements. ERP integrates Finance, HR, Manufacturing, and Distribution into a single and integrated software that runs a single database such that the different departments can easily share information and interact with each other. This integrated methodology will have a massive payback, given the software is used and installed correctly.

11. What are the advantages of an ERP System?

The following are the different advantages of an ERP System:

ERP Systems can streamline the workflows and processes

  • It can offer a single integrated system
  • It minimizes redundant data entry and processes
  • It establishes uniform processes as per the best business practices.
  • It simplifies access to the information
  • It enhances workflow and efficiency
  • It offers enhanced customer satisfaction as per the enhanced on-time delivery and minimized delivery times
  • It will help you share the information across different departments.
  • It offers an amalgamated view of the inventory, receivables, and sales
  • It traces the actual costs of the activities and carries out the activity-based costing
  • It converts collections rapidly as per the better visibility into the accounts and lesser billing or/and delivery errors.
  • It reduces the inventory costs arising from better tracking, forecasting, and planning of the requirements.

12. Describe the Check Table, Value Table, Transparent Table, and Internal Tables?

  • Check Table: It will be available at the field level checking
  • Transparent Table: It will be available with identical structures both in the dictionary and in the database with similar fields and data.
  • Value Table: Valuable Table exists at the domain level checking example: scarr table is the check table for the carrier.
  • Internal Table: It is a standard data type object, which will be available only at the runtime of the program.

13. What do IDOC, RFC, EDI, and ALE refer to?

  • IDOC: Intermediary Documents
  • RFC: Remote Function Call
  • EDI: Electronic Data Interchange
  • ALE: Application Link Enabling

14. What are Application, Database, and Presentation servers in SAP R/3?

The application layer of the R/3 system includes a message server and application servers. Application Programs in the R/3 system run on the application servers. Application servers interact with presentation elements, databases, and also with each other through message servers. All the data is stored in a centralized server. This server is known as the database server.

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15. What are Data Sets?

SAP Data Sets are defined as the sets of information which are needed for resolving queries that cannot be solved by utilizing method interfaces.

Intermediate SAP ERP Interview Questions

16. Describe ODS

ODS refers to Operational Data Store. It is the element of the business warehouse. It is primarily utilized for data reporting.

17. Describe SAP IDES

SAP IDES refers to SAP Internet Demonstration and Evaluation System. This system is utilized for demonstrating the functionalities of several SAP solutions utilized by critical customers. This system utilizes data from the IDES model company.

18. Describe Multi Cube

Multi Cube is the Info cube which is a group of various basic cubes. Using the multi cubes, we can test data from basic cubes from one perspective. Multi Cubes will not have any information but works only on the information of the basic cubes.

19. Name different kinds of Info Cubes?

1. Virtual Data Stores

  • SAP Remote Cube
  • Remote Cube
  • Virtual Info Cube with the Services

2. Physical Data Stores

  • Basic Info Cubes
  • Transactional Info Cubes

20. Explain Business KPIs

Business KPIs act as Key Performance Indicators. They provide the performance of the organization at the strategic level. They also assist in controlling the organization on the required track by comparing its performance with earlier performances and that of the market leaders in the same industries. SAP is standardizing the indication process by building a “Business KPI wiki” project.

21. Describe NetWeaver

For running multiple products from the mySAP suite, we need an integrated platform. This platform is known as NetWeaver. It assists all these applications in running a single instance. While working with NetWeaver, we can access the SAP data through the web. In some cases, we can even access it from Mobile.

Related Article - SAP BO Analysis, Edition for OLAP and SAP NetWeaver BW

22. Explain Pooled Tables

We use pooled tables for storing the control data. Several pooled tables will be integrated for building the table pool. The table tool is the physical table on a database in which every record of the assigned pool table is stored.

23. Describe one-time vendors

In some industries, we cannot create new master records for all the vendor trading partners. One-time vendor allows the dummy vendor code that can be utilized on the invoice entry that is saved in the vendor master.

24. What are the disadvantages of SAP?

The following are some disadvantages of SAP

  • SAP requires exceptionally trained candidates
  • SAP is expensive
  • SAP needs more time for implementation
  • SAP Interface is a little bit difficult
  • SAP cannot determine where the master data exists.

25. What must be the process of writing the BDC Program?

Process of writing the BDC Program

  • Generate Recording
  • Transform the legacy system data to the flat file into an internal table called “Conversion.”
  • Send the File file to the SAP system known as “SAP Data Transfer.”
  • As per BDC type, Call “TRANSACTION” or “CREATE SESSIONS.”

26. Describe “GET” and “SET” parameters

For utilizing the parameters, we have to “set” parameters in the global memory area and next get the values from the parameter ID memory area. In an online program, we need to “set” parameters from the screen fields, and we will “get” the values for the screen fields.

27. Differentiate Data Elements and Domain

  • Domain: It specifies the attributes like type, length, and possible value range.
  • Data Element: It is an interim object between the table and domain type.

28. Describe briefly a Company in SAP

In SAP, Company is the highest-level organizational unit for which financial statements like balance sheets and profit and loss statements can be drawn as per the organization’s requirements. A single company includes multiple codes. Every company code in SAP should utilize the same Char Of Accounts(COA) and fiscal year.

29. Describe Variables

Variables are defined as the query parameters that are displayed in the definition of parameter query and are not loaded with the values until queries are inputted into the workbooks.

30. What are General Transport Errors?

Some general transport areas are:

  • Return code8: It is imported with the program generation error, syntax error, dictionary activation error, etc.
  • Return Code4: It is imported with the program generation, warnings, rows, or columns missing.
  • Return Code18: It indicates import was canceled because the system was down while importing, user expired in insufficient import roles or authorization.
  • Return Code12: It indicates import canceled because of the object not being active, object missing, etc.

31. What is the difference between Data Mining and OLAP?

  • Data Mining: Data Mining is defined as the analytic process of exploring the data in search of persistent patterns or methodical relationships between the variables
  • OLAP: OLAP refers to online analytical processing. It is a reporting tool that is configured for understanding database dimensions, schema, and composition facts.
Related Article - OLTP VS OLAP - Difference between OLTP and OLAP

Advanced SAP ERP Interview Questions

32. Do we run a business warehouse without implementing SAP R/3?

Yes, we can run the business warehouse without implementing SAP R/3. We have to transfer the shapes encircled with the business warehouse data sources to inbound data files or utilize third-party tools for connecting the data sources and flat files.

33. Explain “Reason Codes” in Account Receivable

Reason Codes are defined as the tags that can be assigned for explaining the payments in the assignment of the income customer payments. They must not be combined with “void reason codes” and utilized when outgoing cheques are generated.

34. Describe the Extractor

In the SAP source system, an extractor is defined as the information retrieval process. It can fill the extract structure of the information source with data from SAP source system datasets.

35. Explain WF

Workflow is the tool used for controlling and executing the cross-application processes automatically. It involves the collaboration of the persons included, the work steps needed, and the information which must be processed. The primary benefit is minimizing the costs required for handling the business processes.

36. How do we create a table in the data dictionary?

We can create the table in three steps. First, we must create the domains defining the field length, range, and data type. After that, we have to create the data elements which simplify the type and properties of the data field. Lastly, we can create the tables.

37. Describe the .sca file

.sca file, or SAP Component Archive is utilized for deploying the Java components, paths, or other Java-associated developments. They will be in the form of .sda, .sca, .jar, and .war.

38. How can the ERP analyst enhance the speed of ERP implementation?

Seip suggests that we have to use SAP ASPA Methodology for the SAP systems. We should have a fundamental understanding of ASAP or the other industry best-practice data released constantly by the top ERP software vendors.

39. What is the best benefit of reporting using BW?

While comparing R/3 and BW, it is evident that BW offers better reporting. This is because BW utilized data warehouse or OLAP concepts for storage and analysis. On the contrary, R/3 is helpful for transaction processing. So, BW simplifies this kind of analysis, which is BW's primary advantage.

40. What are the two kinds of services used for communication?

  • Gateway Service: This Service enables the communication between external applications and R/3 through CPI-C protocol.
  • Message Service: It is used for exchanging small internal messages; application servers utilize this service.

41. How many parallel sessions can be utilized together in SAP?

In SAP, we can have six parallel sessions at a time for one client.

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42. Is SAP a Database?

Yes, SAP is a database and an application that uses databases offered by other vendors like SQLServer, Oracle, etc.

43. Have you worked on any functional areas while handling the projects?

Yes, while handling the projects, I have worked on some SAP functional modules like HCM, MM, PP, and SD.

44. What are the three phases of Data Mining?

Three Phases of Data Mining are:

  • Initial Exploration
  • Data Building
  • Deployment

45. Define BDC and What are the Methods utilized in it

BDC refers to Batch Data Communication. In BDC, we will utilize the following methods:

  1. Batch Input Session Method
  2. Direct Input Method
  3. Call Transaction Method

46. Describe Open SQL vs. Native SQL

ABAP Native SQL enables us to involve database-specific SQL statements in the ABAP program. Most ABPA programs, including database-specific SQL statements, do not execute with different databases. If different databases are included, we utilize OpenSQL. For executing the ABAP Native SQL in the ABAP Program, we utilize the “EXEC” statement. Open SQL enables us to use all the database tables that exist in R/3 system, irrespective of the manufacturer.

Related Article - SAP ABAP Interview Questions


Many small and medium-sized businesses use SAP ERP, so they recruit SAP ERP technical or functional consultants. But to get the job, candidates need to answer the questions asked in job interviews. This SAP ERP interview questions blog includes all the theoretical and applied concepts of SAP ERP. If you have any queries, let us know by commenting below. You can learn SAP ERP Course Offered by MindMajix and improve your knowledge. It will support you to bag your dream job and succeed in your career.

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Last updated: 03 Jul 2024
About Author

I am Ruchitha, working as a content writer for MindMajix technologies. My writings focus on the latest technical software, tutorials, and innovations. I am also into research about AI and Neuromarketing. I am a media post-graduate from BCU – Birmingham, UK. Before, my writings focused on business articles on digital marketing and social media. You can connect with me on LinkedIn.

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