SAP SD Interview Questions

Looking for a future in sales and distribution? Well here are some essential SAP SD interview questions that will help you prepare for your future. The rising demand for management logistics among companies has led SAP to develop several modules that focus on sales and distribution. We have prepared some frequently asked interview questions on SAP SD to help you crack the interviews.

We have categorized SAP SD Interview Questions - 2024 (Updated) into 3 levels they are:

• For Beginners
• S/4 Hana
• For Experienced

Frequently Asked SAP SD Interview Questions and Answers

What is SAP SD? Explain organizational structure in SAP SD? Describe material management in the SAP ERP system? What are sap sd modules? Name the sub-modules of SAP SD? Explain about sales support? What is a partner function? What is an outline agreement?

SAP SD Interview Questions for Beginners

1. What is SAP SD?

SAP SD Stands for Sales and distribution. It is one of the primary modules developed by SAP to manage the shipping, billing, selling, and transportation of their products. This module stores the consumer and product data of the customer of a company.

SAP uses these details to make better choices and maintain a good relationship with the customer and the company/organization. SAP SD when combined with other modules like MM (material management), PP (production planning) can bring much better results very quickly

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2. What is the primary function of sap?

SAP (System Application Product) is one of the top ERP ( Enterprise Resource Planning) software that is being used in many large enterprises to run smoothly and to grow in the business and services. 

3. What are the areas we use sap?

SAP was initially developed by a few IBM employees to resolve the problems arising in a software application. After some time, SAP came up with application software, i.e., SAP R/3 where R means real-time data processing and 3 represents Application, Presentation, and database leaders. 

Eventually, it gained popularity among many huge enterprises which resulted in adding so many other SAP modules to cover certain areas in a business. A few of those modules are Finance and accounting, controlling, production and planning, materials management, etc.

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4. Name the key components in SAP SD?

The key components in the SAP Sales and Distribution module are −

• Customer and Vendor Master Data
• Contract Handling and Management
• Transportation of products
• Shipping of Material
• Credit Management
• Information System
• Sales Activities
• Billing-related
• Foreign Trade
• Sales Support.

5. Explain organizational structure in SAP SD?

There are many components in SAP sales and distribution like sales areas, distribution channel, divisions, sales office, sales group. And it follows two main steps which go as follows: 

• To create organization elements in the SAP system
• And to link each element according to the requirement.

6. Describe material management in the SAP ERP system?

Material management is also one of the key modules in SAP ERP systems, which is interlinked with other modules of SAP R/3. Its primary operations are to keep a record and monitor day-to-day business operations and requirements in the inventory. All these SAP modules are interrelated with each other.

7. How is material management associated with SAP SD?

There are so many links between SAP SD and SAP MM. For example, Material Management(MM) is required to create inbound and outbound updates for sales and distribution. Similarly, price details and the availability of the product are taken from MM but are controlled by the sales and distribution module.

Orders placed by the customers should be extended to the sales area in an organization, or else it gets difficult or impossible to transact with the material. This shows that these modules are interconnected to each other and all the other modules are interrelated.

8. What are sap sd modules?

SAP SD (Sales and Distribution) is one of the essential modules in SAP REP. It contains all the data and information about their customers and services. It deals with shipping, selling, and transportation of goods and services of the organization. There are many sub-modules of SAP SD.

9. Name the sub-modules of SAP SD?

The business processes in an organization that is related to SAP SD goes as follows:

• SAP SD-MD ( Master Data)
• SAP SD-BF (Basic Functions) 
• SAP SD-SLS (Sales)
• SAP SD-SHP (shipping)
• SAP SD-TBA (Transportation)
• SAP SD-FTT (Foreign trade)
• SAP SD-BIL (Billing)
• SAP SD-CAS (Sales support)

10. Explain about sales support?

Sales support is one of the major components of SAP SD. It is also called CAS (Copter Aided Selling). The main purpose of this module is to help companies and organizations to build new sales, tracking of old and existing sales, and keep a record of the performance as well. This module will help these organizations to look up the work progress and make changes in the procedures if necessary. It even helps to attain the list of interested customers which you can connect through emails, which will ultimately help in the business.

11. What are the main functions of sales order processing? 

The wholesale side of an organization is the primary area of focus in the sales order. Its primary functions are :

• Checking the availability of the purchased articles.
• e-Transfer of documents and printing them.
• Checking for incomplete data.
• Checking the status updates of sales transactions.
• Scheduling goods delivery dates.
• Calculation of prices and taxes.

12. Name the type of sales order (modules) related to SD?

Transfer of Requirements

• Tax Determination 
• Availability Check
• Sales Order
• Link Points 
• Credit Check 
• Costing 

13. What is the sales area in SAP SD?

The sales area in SAP SD is the combination of sales organizations, distribution channels, and divisions. It will help us determine what marketing strategy has been adopted by one particular division for improving sales.

14. What is the distribution channel in SAP SD?

This channel consists of information and details of the distributed products. This means it keeps the log of all the products and services provided by an organization to its users.

15. Explain division in SAP SD?

The division is a structure that shows the product and service lines of a product in an organization. 

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Top SAP SD S/4 Interview Questions

16. What is a partner function?

There are many actions that happen in a company or an organization and sap sd count of all the steps through partner functions. This function allows the organizations to keep a record of performance and which partner is linked up to one particular customer, and keeps the details of the people with whom the business process is carried out.

17. List the types of partner functions in SAP SD?

There are several partner functions based upon the types of partners and they go as follows:                                                              

• Partner Type  
• Partner Function
• Vendor 
• Forwarding agent
• Customer 
• Selling 
• Shipping
• Billing
• Human resource  
• Responsible for employees
• Sales personnel  

18. Explain sales activity in an SAP SD?

A lot of activities happen in SAP SD, and sales activity is one among them. Sales activities are those tasks the sales personnel undertake to improve sales. 

19. Name and describe types of pre-sales activities?

Sales activities are classified into two types:

• Pre-sales activity: These are the activities that occur before the sales of the products to customers, like quotations and inquiries from the vendors. 
• Post-sales activity: These are the activities that occur after the transactions have been completed. These activities include relationship management and support.

20. List some of the general data control elements?

Data control elements are used to determine different types of item categories. You can also take chances in the existing item categories or create new ones. Some of the general data control elements are:

• What outputs are acceptable for business transactions
• What is the size of a complete product? 
• Check if the pricing has to be carried out for an item or not.
• Check if the item is suitable for shipping and billing.

21. What is an outline agreement?

A long-term purchasing agreement signed with a vendor is called an online deal or agreement. The terms and conditions are written in the agreement stating the materials that are supplied by the vendors. 

there are two types of outline agreements under SAP SD:

• Contract
• Scheduling agreement.

22. What is a contract in outline agreement?

The customer (ordering parties) and vendor signup contracts for a certain period of time. There are two types of contracts one is quantity contracts, and the other is value contract.

23. Describe the process to create a 'scheduling agreement?

It is an external agreement, and it applies to customers. These agreements basically contain details of the products, delivery dates, and services.

24. Describe, what are the types of contracts?

There are two types of contracts, and they go as follows:

• Value contracts: In a value contract, the vendor has to pay the value, and the value is written accordingly
• Quantity contracts: On the other hand, in a quality contract, a vendor has to write the terms of the contract according to the quantity of the material being supplied.

25. What are schedule line categories?

All the items are divided into schedule lines in a sales document. These scheduled lines are assigned to multiple control elements. These schedule lines contain all the details like delivery dates, quantity, availability in inventory, etc. on the item with scheduled lines are copied to SAP System. 

26. What are the schedule line categories in different sales documents? 

Scheduled lines are categorized according to the sales document type and item category. All these control elements that are related to general data and shipping are used to categorize schedule lines.

27. What do you mean by copy control?

Copy control is a process where all the important data like transactions in sales are copied from one document to another. An SAP System consists of copy routines. These routines keep a record of how the systems copy data from the source to the target documents. This information will help create additional routines that will meet the business requirements.

28. How do copy controls work in SAP systems?

Copy controls have three different levels in a sales order which goes as follows:

Header level: It is used when the system copies the data from the header source document to the target header document.

Item level: This is used to find out the status of the line item.

Schedule line level: This is only relevant when copying of sales orders is done from the billing document.

29. How is pricing done in SAP SD?

Pricing is used to determine the prices of external vendors or customers. There are some set of conditions when the price is being calculated.

30. What is manual pricing?

During the sales order process, we can also perform manual pricing by manipulating the prices of the items as well as header level. Manual processing is dependent on individual condition types to determine the price. Activities which you can perform goes as follows:

• Entering additional pricing elements
• Deleting the pricing element.
• Changing a condition

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SAP SD Interview Questions for 6 Years Experienced

31. What is the condition table and record?

A combination of keys is required to identify an individual condition record; this is called a condition table. A system stores data in a specific condition also called a condition record. 

32. What is the access sequence?

Access sequence is a search procedure that is used to find data for one particular type. We can determine the system search order path to retrieve the data. Access sequence consists of one or more access sequences, which is used to search until it finds the valid record relevant to the conditions.

33. What is pricing by item category?

Not all the items are necessarily suitable for pricing. If an item is not relevant for pricing, then those lines are kept empty/blank. Therefore the item category is used in determining the prices of the items.

34. Name the pricing and types?

The system depends on various predefined price types to determine the price of the material. It is also referred to as gross price. These types of costs in a system are:

• Material price
• Price list type
• Customer-specific price. 

35. Explain SAP SD Product proposals

Proposing a new product is always an excellent strategy to improve the sales performance of any organization. The products recommended might be cheaper, expensive, or similar to the products that are requested by the customer.

Automatic product proposal is one power tool that the system uses to market products online. They are capable of matching their market requirement. SAP CRM module is very helpful as it consists of data to make such types of proposals.

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36. What are the features that the project proposal supports?

Product proposal supports features like :

Cross-selling is the relationship between different products. Its rules suggest leading products and sub associated products, Up-selling and down-selling,

Top N product list, Proposing accessories, Generating product proposals with respect to specific promotions.

37. Explain the types of sales orders.

In the SAP system, different transactions define different sales document types. Business transactions are grouped into sales documents in various categories which goes as follows:

Inquiries and quotations

• Sales orders
• Outline agreement
• Post-sales documents.

38. What is the quota arrangement?

Different materials are used to produce a product, and we get those materials from various vendors. A quota arrangement is where a quota is assigned to each supply source. Usually, the one who drops the lowest quota rating will represent the product production.

39. What do you mean by the special business process in SAP SD?

SAP SD module has the capability to create a special business process like customizing the products and get products manufactured personally, apart from the normal sales order.

40. Explain consignments processing.

Consignments are also known as products that are owned by the company that is located at the client's location. 

41. Explain shipping in SAP SD.

Shipping is an important activity that comes under the logistics chain and ensures customer service and distribution of goods. It is used to do outbound delivery and other activities like picking, packing of the goods.

42. What is picking, packing, and posting a good issue in delivery processing?

All these procedures are done in the SAP warehouse management system. All these procedures are done strategically. With all the data in the systems, the SAP SD uses to find the best way to handle the goods and avoid disturbance. There are two types of packing; manual and automatic. There are three types of picking; picking them individually, as per defined intervals, or self pick-up.

43. How is credit management done in SAP SD?

SAP SD has to have a record of the goods sold and the money collected. This is the next step after the sales have been made. The key features of credit management are:

• Simple credit check.
• Automatic credit check.

44. What is mapping an enterprise structure in SAP SD?

An enterprise structure represents the structure of business in the real world. Requirements like the client, distribution channel, company code location, etc. can define various organizational units.

These are some important interview questions on SAP SD for beginners and experienced candidates. I hope these questions will help you get familiar with the concepts and insights of SAP SD and help you prepare for the interviews as well. 

Please comment below for more queries.