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.
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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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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.
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.
The key components in the SAP Sales and Distribution module are −
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:
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.
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.
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.
The business processes in an organization that is related to SAP SD goes as follows:
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.
The wholesale side of an organization is the primary area of focus in the sales order. Its primary functions are :
Transfer of Requirements
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.
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.
The division is a structure that shows the product and service lines of a product in an organization.
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.
There are several partner functions based upon the types of partners and they go as follows:
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.
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.
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:
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:
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.
It is an external agreement, and it applies to customers. These agreements basically contain details of the products, delivery dates, and services.
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.
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.
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.
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.
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.
Pricing is used to determine the prices of external vendors or customers. There are some set of conditions when the price is being calculated.
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:
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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.
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.
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.
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:
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.
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.
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
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.
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.
Consignments are also known as products that are owned by the company that is located at the client's location.
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.
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.
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:
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.
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Ravindra Savaram is a Content Lead at Mindmajix.com. His passion lies in writing articles on the most popular IT platforms including Machine learning, DevOps, Data Science, Artificial Intelligence, RPA, Deep Learning, and so on. You can stay up to date on all these technologies by following him on LinkedIn and Twitter.