SAP SD Technical Interview Questions Answers
What is SAP Sales and Distribution?
SAP Sales and Distribution is one of the key components of the SAP ERP system and is used to manage the shipping, billing, selling, and transportation of products and services in an organization. The SAP Sales and Distribution module is part of the SAP Logistics module that manages customer relationships 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 do you understand by Organization structure in SAP Sales and Distribution?
SAP SD organization structure majorly consists of two steps − The creation of Organization elements in the SAP system and the second is to link each element as per requirement. On top of the organization structure in the SD module, the sales organization is at the highest level and is responsible for the distribution of goods and services. SAP recommends keeping the number of sales organizations in the organizational structure to be minimum which helps in making reporting process easy and ideally it should have a single Sales organization.
What is the 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 an entity that is required to process an order in a company. It is comprised of a Sales organization, a distribution channel, and a division. In SAP SD organizational structure, each sales organization is assigned a company code. Distribution channels and divisions are assigned to the Sales organization and all comprise to make a sales area.
What is the use of the Sales area?
A Sales area is known as an entity that is required to process an order in a company. It is comprised of a Sales organization, a distribution channel, and a division.
Can you do delivery without a shipping point?
No, a shipping point is required to perform goods delivery.
Is it possible to create invoices without delivery?
No, the invoice is not possible without delivery.
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 items from Material Management. Availability checks of the item and price details are also taken from MM but this can be controlled by this data in the 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 the 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 the movement of goods hit some G/L accounts in FI.
What is the link point of SAP Sales and Distribution with other SAP modules?
| Link Points | Module Involved |
|---|---|
| Availability Check | MM |
| Credit Check | FI |
| Costing | CO/MM |
| Tax Determination | FI |
| Transfer of Requirements | PP/MM |
What is the use of the partner function in SAP Sales and Distribution?
Partner function allows you to identify which functions a partner has to perform in the business process. Consider the simplest case, where all the customer functions are performed by a partner customer. As these are mandate functions they have to be defined as obligatory functions in the SD system.
What are different partner-type functions available in SAP SD?
Below partner types are Customer, Vendor, Personnel, and Contact Person, and common partner functions as per these partner types are −
| Partner Type | Partner Function | Entry from System |
|---|---|---|
| Customer (CU) | Sold-to-party (SP) Ship-to-party (SH) Bill-to-party (BP) Payer (PY) | Customer number |
| Vendor (V) | Forwarding agent (fwd agent) | Vendor number |
| Human resources (HR) | Employee responsible (ER) Sales personnel (SP) | Personnel number |
| Contact Person (CP) | Contact person (CP) | Contact partner number |
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 are the different sales activities that you perform in SD?
All Sales activities in the SAP SD system can be divided into presales and post-sales activities. Presales activities are classified as activities that occur before the product is sold to the customer and post-sales activities are those which occur after the product is sold.
Pre-Sales Activities − Inquiry, quotation
Post Sales Activities − Support, Relationship management
What is the use of Sales support in the SAP SD module?
Sales support is one of the key components in the 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 an email list for the customer and directly sending emails for new leads.
What do you understand by Sales Order processing?
Sales order processing describes a function related to wholesale 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 the Sales Order in SAP SD? How can you create, edit or display an existing sales order?
Structure of a Sales Order − An inquiry from a customer consists of one or more items that contain the quantity of a material or service entered in the order. The quantity in a Sales order is further divided into business lines and comprises various subsets and delivery dates. Items in Sales orders are combined in a hierarchy and allow to differentiate between batches or to use of combinations of materials. All the valid conditions on the items are mentioned in the item conditions. These conditions for an item can be derived via a full condition and can be valid for the 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?
The quotation is a legal document to customers for the delivery of goods and services. This is normally issued after an inquiry from a 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
Is it possible to process outbound delivery without a shipping point?
No
What is the use of Sales support function in SD module?
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.
Give an example of a sales process from presales activity to free of charge replacement?
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.
What are different sales document in SAP system? How to create a sales document?
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
In SAP Sales process, a standard item function is same as function of free or charge item or text item?
No
What are the different factors to be considered while defining different types of item categories?
General Data Control Elements Shipping data Control Elements Billing Data Control Elements
What are different schedule line categories as per different sales document?
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
In a sales order how system does picks up plant?
You can assign particular material master to particular Plant and it picks up from there.
Why do you use pricing date in condition type?
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.
What is the use of copy control, explain?
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
What is pricing in Sales and Distribution? Explain?
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.
What are the different pricing elements in SAP system?
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.
What is condition record and condition table?
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.
Give an example of condition record and condition table?
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.
What do you understand by condition technique and type?
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.
Any example of using condition technique and type?
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.
What are the predefined condition types in SAP SD 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 |
What do you understand by surcharge and discount? What are predefined discount type in SAP system?
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 |
How do you manage discounts in Condition record?
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.
What is the use of product proposals in SAP SD module?
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.
Can we extend material and customer to other sales area in SAP Sales and Distribution?
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.
What are different sales order type that can be used in SAP SD system?
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.
How do you manage deliveries when customer is not satisfied with product/service?
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
What is an outline agreement?
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.
What are different type of outline agreements?
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.
What are different contract types? How to create a contract in SAP system?
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
How you can create a scheduling agreement?
Path to create Scheduling Agreement − Logistics ⇒ Materials Management ⇒ Purchasing ⇒ Outline Agreement ⇒ Scheduling Agreement ⇒ Create ⇒ Vendor Known T-code − ME31L
What are the different activities under consignment stock in SAP SD?
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 the warehouse) Creating a Consignment Pick-Up (Stock return to manufacturer) Displaying Consignment Returns (Stock return from customer)
What is the use of shipping process in SAP Sales and Distribution? How do you define modes of transport?
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.