SAP SD Interview Questions

What is SAP SD?

The SAP SD module is one of the primary ERP module developed by SAP. SAP service and distribution deals in better management of sales and customer distribution data and processes in organizations. It works closely with other SAP modules towards effective process work.

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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.

What are the functions of SAP SD?

  • Inquiries & Quotes
  • Sales Orders
  • Sales Return
  • Consignment
  • Contract & Scheduling Agreements
  • Credit & Debit Memo requests
  • Rush Orders & Cash Sales
  • Back Orders

What is SAP Sales and Distribution?

SAP Sales and Distribution is one of key component of SAP ERP system and is used to manage shipping, billing, selling and transportation of products and services in an organization.

SAP Sales and Distribution module is part of SAP Logistics module that manages customer relationship starting from raising a quotation to sales order and billing of the product or service. This module is closely integrated with other modules like SAP Material Management and PP.

What is the organizational structure in sales and distribution?

The organizational structure in sales and distribution is

Sales Organization
Distribution Channel
Division
Sales Office
Sales Group

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

Explain how shipping point is determined?

Shipping point is determined by,

Shipping Conditions + Loading Group + Delivery Plant = Shipping Point

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

What do you understand by Organization structure in SAP Sales and Distribution?

SAP SD organization structure majorly consists of two steps: Creation of Organization elements in SAP system and second is to link each element as per requirement. On the top of organization structure in SD module, sales organization is at highest level and is responsible for distribution of goods and services.

SAP recommends to keep number of sales organization in organizational structure to be minimum which helps in making reporting process easy and ideally it should have a single Sales organization.

What is Sales area, Distribution channel and division in SAP Sales and Distribution?

Distribution channel tells the medium by which products and services are distributed by an organization to its end users. Division in an organizational structure represents a product or service line in a single organization.

A Sales area is known as entity which is required to process an order in a company. It is comprised of Sales organization, distribution channel and a division.

In SAP SD organizational structure, each sales organization is assigned to a company code. Distribution channel and divisions are assigned to Sales organization and all comprise to make a sales area.

What is the use of Sales area?

A Sales area is known as entity which is required to process an order in a company. It is comprised of Sales organization, distribution channel and a division.

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.

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

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.

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).

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. Credit memo is when the customer is credited without returning any goods.

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

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

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

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.

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

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

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

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

List out the five features you can control for the sale document type?

For sale document type the five features you can control is

  • Text
  •  Partner
  • Pricing
  • Taxes
  • Output
  • Delivery

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

Give an example of Material Management integration with Sales and Distribution?

Consider an example of creating a sales order in SAP SD, it involves copying details of item from Material Management.

Availability check of the item and price details are also taken from MM but this can be controlled this data in SD module. To create inbound and outbound delivery of goods for a sales order, shipping details, loading point etc. also come from Material Master.

What is the use of SAP FI in SAP Sales and Distribution?

In case of standard sales order, you create an outbound goods delivery to the customer. Here movement 601 takes place. This movement is configured in MM and movement of goods hit some G/L account in FI.

What are the different Customer account groups that you can create in SAP SD?

  • Domestic customers
  • Export Customers
  • One Time Customers

What is a Sales activity? What is different sales activity that you perform in SD?

All Sales activities in SAP SD system can be divided into presales and post sales activities. Presales activities are classified as activities which occur before product is sold to customer and post sales activities are those which occurs after product is sold.

Different sales activity that we can perform in SD

Pre Sales Activities − Inquiry, quotation

Post Sales Activities − Support, Relationship management

What is the use of Sales support in SAP SD module?

Sales support is one of the key components in Sales and Distribution SD module. It is also called computer Aided Selling SD-CAS.

This module helps organizations to create new sales, tracking of existing sales, and performance and eventually help in improving marketing and sales in an organization.

SAP SD Sales support module provides an option of creating email list for the customer and directly sending mails for new leads.

What do you understand by Sales Order processing?

Sales order processing describes a function related to whole sale part of an organizational business. Common functions under sales order processing:

  • Availability of the articles purchased
  • Checking for incomplete data
  • Checking the status of the sales transaction
  • Calculation of pricing and taxes
  • Schedule the deliveries of goods
  • Printing of documents or e-transfer of documents

What is the structure of Sales Order in SAP SD? How can you create, edit or display an existing sales order?

An inquiry from a customer consists one or more items that contains the quantity of a material or service entered in the order.

The quantity in a Sales order is further divided into business lines and comprise of various subsets and delivering dates.

Items in Sales order are combined in a hierarchy, allows to differentiate between batches or to use combinations of materials.

All the valid conditions on the items are mentioned in item conditions. These conditions for an item can be derived via a full condition and can be valid for entire sales order.

You can divide an item to multiple billing plan deadlines and each tells the time when a fixed amount of the item is to be billed.

VA02 − Edit a Sales Order

VA03 − Display a Sales Order

T-Code − VA01 Create a Sales Order

What is an inquiry under presales activity? How to create a new inquiry?

An Inquiry is not a legal document and is used to record the information about delivery or services from customers. The information that is captured using an inquiry is related to materials and quality of goods.

Menu Path − Logistics → Sales and Distribution → Sales → Inquiry → Create

T-Code − VA11

How can you create a quotation in SAP Sales and Distribution?

Quotation is a legal document to customer for delivery of goods and services. This is normally issued after an inquiry from customer or without an inquiry.

SAP R/3 Menu

Logistics → Sales and Distribution → Sales → Quotation → Create

T-Code − VA21

What is the difference between a Sales activity and a sales document?

Sales Activity −

Sales activities are categorized as Presales and post sales −

This include when you sell material rather you do your preparation for sales with the customer…

Sales Call, Phone Call, Sales Letter, and post sales like support and relationship, etc.

Sales documents −

These documents are considered under sales, where you sell the materials to the customer and are created in SAP system to manage sales process.

Example: Sales orders, Quotations, etc.

How do you assign a sales organization to delivering plant?

SPRO-IMG-Enterprise Structure-Assignment-SD-Assign Plant to Sales Organization/Dist.Channel

T-Code − OVX6

Can you do delivery without shipping point?

No, shipping point is required to perform goods delivery.

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Nice SAP SD Interview Questions and Answers, Keep Updating more. Thank You Iteanz.
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