SAP SD Interview Questions


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Dear readers, these SAP SD Interview Questions have been designed specially to get you acquainted with the nature of questions you may encounter during your interview for the subject of SAP SD. As per my experience good interviewers hardly plan to ask any particular question during your interview, normally questions start with some basic concept of the subject and later they continue based on further discussion and what you answer −

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.

SD Lifecycle

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.

  • 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.

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.

No, shipping point is required to perform goods delivery.

No, invoice is not possible without delivery.

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.

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.

Link Points Module Involved
Availability Check MM
Credit Check FI
Costing CO/MM
Tax Determination FI
Transfer of Requirements PP/MM

Partner function allows you to identify which functions partner has to be perform in business process. Consider a simplest case, where all the customer functions are performed by partner customer. As these are mandate functions they has to be defined as obligatory functions in SD system.

Below partner types are Customer, Vendor, Personnel, Contact Person and common partner functions as per these partner types are −

Partner Type Partner Function Entry from System Master Record
Customer (CU)

Sold-to party (SP)

Ship-to party (SH)

Bill-to party (BP)

Payer (PY)

Customer number Customer master record
Vendor (V) Forwading agent (fwdg agent) Vendor number Vendor master record
Human resources (HR)

Employee responsible (ER)

Sales personnel (SP)

Personnel number Personnel master record
Contact Person (CP) Contact person (CP) Contact partner number

(created in customer master recors, no master record of its own)

  • Domestic customers
  • Export Customers
  • One Time Customers

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

  • Pre Sales Activities − Inquiry, quotation

  • Post Sales Activities − Support, Relationship management

Sales support is one of the key component 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.

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

Structure of a 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 and 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

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

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

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.

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

  • T-Code − OVX6

No

Sales support is one of the key component 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.

Sales support stores all the data related to sales and distribution related to customers, products, materials, competitor products, etc.

There is a customer telephone inquiry in the system and then customer requests a quotation which can be created by referring to same inquiry. Next is the customer place an order on the basis of quotation and a sales order is created by copying the information from the quotation and if any modifications are required.

Merchandise is shipped and bill is sent to the customer. After the delivery of goods, customer raises a claim damaged articles, a delivery can be created free of charge with reference to the sales order.

There are different types of sales document that can be defined in SAP system −

  • Credit Memo
  • Debit Memo
  • Standard Order
  • Delivery Returns, etc.

To define a Sales Document

Enter T-Code − VOV8 or SPRO → IMG → Sales and Distribution → Sales → Sales Document → Sales Document Header → Define Sales Document Type

No

  • General Data Control Elements
  • Shipping data Control Elements
  • Billing Data Control Elements

Inquiry

  • No Delivery of an item
  • No Availability check
  • Information purpose

Quotation

  • No Delivery
  • No Movement

Order

  • Schedule line is suitable for delivery
  • Movement type 601

Return

  • Schedule line is suitable for delivery

You can assign particular material master to particular Plant and it picks up from there.

It shows date of calculation of pricing procedure for that Particular document. So that in future you can see the date on which pricing calculated for that particular document.

Copy Control is defined as a process in which important transactions in a sales document are copied from one document to other. It consist of routines which determines the system how the data is to be copied from source document to target document.

A SAP system contains number of these routines and you can also create additional routines to meet the business requirements. To create a new routine you can use an existing sales document as a reference.

How to find Copy Controls in SAP system?

These controls are created and configured under IMG and can be found at below menu path −

  • SPRO → IMG → Sales and Distribution → Sales → Maintain copy control for sales documents

  • SPRO → IMG → Sales and Distribution → Shipping → Specify copy control for deliveries

  • SPRO → IMG → Sales and Distribution → Billing → Billing Documents → Maintain copy control for billing

Pricing in Sales and Distribution is used to define the calculation of prices for external vendors or customers and cost. Condition is defined as set of conditions when a price is calculated.

Example

Consider a case when a customer orders specific quantity of a product on a particular day. Various factors like customer, product, order quantity and date tells the final price to customer. This information is stored in the system as master data in the form of condition records.

There are various pricing elements like prices, surcharges, discounts, and taxes are defined in SAP system as condition types. To manage pricing information for a pricing element in a system, you have to create condition records.

A Condition table is defined as combination of keys to identify an individual condition record. A condition record is defined as how system stores the specific condition.

Example of Condition Record

Entering the price of a product or to specify the discount for a privilege customer.

Example of Condition Table

Condition records for a customer specific material prices are stored by a sales department. SAP system contains a conditional table 005 for this purpose. Key of table 005 includes below field −

  • Customer
  • Material
  • Sales Organization
  • Distribution Channel

First two fields − Customer and Material determines the relationship between customers and specific materials. Last two fields are used to identify organization data in SAP system.

Condition type is defined as specific features of daily pricing activities in SAP system. Using condition type you can also put different condition types for each pricing, discounts on goods, tax and surcharge that occurs in business transactions.

Condition type allows you to define the discount for special material. This can be specified in the system to calculate discount as an amount or it can calculate discount in terms of percentage.

In case you have to use both discount types, two separate condition types has to be defined in the system.

Condition Type Desccription
PR00 price
K004 Material discount
K005 Customer-specific material discount
K007 Customer discount
K020 Price group discount
KF00 Freight surcharge (by item)
UTX1 State tax
UTX2 Country tax
UTX3 City tax

A standard SAP system includes variety of common discount types. You can also define customize discounts and surcharges as per business requirement.

Standard SAP system includes below discount types

Discount (Key) Kind of discount
Customer (K007) Percentage
Material (K004) Absolute
Price group (K020) Percentage
Material group (K029) Absolute discount by weight
Customer/material (K005) Absolute
Customer/material group (K030) Percentage
Price group/material (K032) Absolute
Price group/material group(K030) Percentage
Rebate processing (BO01) Group rebate (%)
Rebate Processing (BO02) Material rebate (fixed)
Rebate processing(BO03) Customer rebate(%)
Inter-company processing (P101) Intercompany discount (fixed)
Inter-company billing (P102) Intercompany discount (%)
Invoice lists (RL00) Factoring discount
Invoice lists (MW15) Factoring discount tax

While creating a condition records, you can use any of standard discount types. While doing automatic pricing, system checks for the discount that satisfies a certain condition and it checks for a valid condition records.

If a discount refers to a group like a material group or price groups, that group must be assigned to relevant customer or material master record before automatic pricing is done in the system.

Product Proposal helps an organization to increase the sales by recommended other products to the already added products or by replacing one already added. The products recommended can be cheaper, expensive or similar to the product that is requested by the customer.

Automatic Product Proposal is one of most powerful tool used in online marketing of products.

Product Proposals can be mapped to specific requirement of business partners to match their market requirement.

Sales area is a combination of sales organization and distribution channel and Division. Division is a logical grouping of products, hence you can’t extend material to other sales areas. But you can extend customer to other sales areas through common Distribution channel & division.

There are different types of Sales Order that can be placed −

Cash Sales

This is defined an order type where customer place an order, pick up the order and pay for the goods. In this order type delivery of the order is executed immediately when the order has been entered. Cash invoice and billing can be printed immediately from the order.

No Receivables is entered for customer as invoice amount is paid cash and directly entered to a cash account.

Rush Order

In this order type, delivery of good is picked by customer or you deliver the goods on the same day when the order is placed.

Scheduling Agreement

A scheduling agreement is defined as an external agreement with the customer and having details of quantity of goods and delivery dates. This information is mentioned as schedule lines In a standard system, Schedule lines can be created with the scheduling agreement or you can also create these at later stage.

Free of charge delivery or subsequent delivery is made when customer is not satisfied with product or good or lesser quantity of good is delivered and company has to initiate a return as per customer request. In this delivery, customer is not charged for shipping of goods.

Steps to be followed in case of Return request

Credit Memo

This is done when customer wants refund for the delivered goods. System creates credit memo sales document to customer with reference to sales order.

Subsequent delivery

This includes free of charge delivery of disputed goods to the customer. This is required when incorrect quantity of goods is delivered to customer.

Creating a return request in system

T-Code − VA01

Outline agreement is a long term purchasing agreement with vendor containing terms and conditions regarding the material that is supplied by vendor.

Outline agreement are valid up to certain period of time and cover a certain predefined quantity or value.

Outline agreement is of following two types.

  • Contract
  • Scheduling Agreement

Contract

Contract is a long term outline agreement between vendor and ordering party over predefined material or services over certain framework of time. There are two types of contract

Scheduling Agreement

A scheduling agreement is defined as an external agreement with the customer and having details of quantity of goods and delivery dates. This information is mentioned as schedule lines In a standard system, Schedule lines can be created with the scheduling agreement or you can also create these at later stage.

Quantity Contract − In this type of contract overall value is specified in terms of total quantity of material to be supplied by vendor.

Value Contract − In this type of contract overall value is specified in terms of total amount to be paid for that material to the vendor.

Contract can be created by following the below steps −

  • Path to create Contract −

    Logistics ⇒ Materials Management ⇒ Purchasing ⇒ Outline Agreement ⇒ Contract ⇒ Create

  • T-code − ME31K

Path to create Scheduling Agreement

  • Logistics ⇒ Materials Management ⇒ Purchasing ⇒ Outline Agreement ⇒ Scheduling Agreement ⇒ Create ⇒ Vendor Known

  • T-code − ME31L

Consignment stock management includes four key activities in the system −

  • Creating a Consignment Fill-Up (Stock is fill up at warehouse)

  • Creating Consignment Issue (Stock issued from warehouse)

  • Creating a Consignment Pick-Up (Stock return to manufacturer)

  • Displaying Consignment Returns (Stock return from customer)

Shipping is defined as an important activity in sales process. It comes under logistic chain and guarantees customer service and distribution of goods.

It is a component of Sales and Distribution module and is used to perform outbound delivery and other shipping activities like picking and packing of the goods.

In shipping process, below are the key sub processes −

  • Delivery processing of the goods
  • Picking of items
  • Packing of the goods
  • Post goods issue
  • Shipping communication
  • Planning & monitoring of shipping

To define Modes of Transport, navigate −

  • SPRO → IMG → Logistics Execution → Transportation → Basic Transportation Function → Routes → Define Routes → Define modes of transport → Execute.

What is Next ?

Further you can go through your past assignments you have done with the subject and make sure you are able to speak confidently on them. If you are fresher then interviewer does not expect you will answer very complex questions, rather you have to make your basics concepts very strong.

Second it really doesn't matter much if you could not answer few questions but it matters that whatever you answered, you must have answered with confidence. So just feel confident during your interview. We at tutorialspoint wish you best luck to have a good interviewer and all the very best for your future endeavor. Cheers :-)


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