6th October, 2020
Sales and Distribution plays a prominent role in every business. So every organization has a sales and distribution department which mainly deals with all essential transactions of the company. So if you want to kick start your career in the sales department, it's a perfect choice.
So our experts compiled Best SAP SD Interview questions and answers for freshers and professionals, which helps you to clear your interview. And also our experts classified the Sap SD Interview question from Basics to Advanced.
Ans: SAP SD means Sales Distribution, and it is one of the primary building blocks of the SAP. This module is all about to manage selling, billing and shipping the products. Also, it stores the customer and product details of the consumer of an enterprise. SAP utilizes all these details to maintain a healthy relationship with their organization/customers. SAP SD is integrated with other modules of SAP like SAP PP(Production Planning) and SAP MM(Material Management) to give better results quickly.
Ans: Following are the critical components of the SAP SD:
Customer and Vendor Master Data
Shipping of Material
Transportation of products
Contract Handling and Management
Ans: To complete SAP sales and distribution organizational structure, SAP is providing many components such as divisions, distribution channels, sales area, etc. And the following are the two significant steps of the SAP SD organizational structure:
Creating the organization elements in the SAP system,
According to the requirement linking each component of the SAP system.
The sales organization is the highest level in the organizational structure of the SAP module, which is responsible for the distribution of services and goods.
Distribution channel acts as a medium to transmit the information of the products and services that are distributed by the organization to its clients.
The division represents a service or a product line in a single firm.
Sales Area is an entity which requires to process the order in an organization.
In SAP SD organizational structure, every sales organization is assigned to the company code. Divisions and distribution channels are allocated to the sales organization, and all these involved to make a sales area. Following diagram represents the Organization structure of the SAP SD.
Ans: Material Management is one of the prominent modules in the SAP ERP system, which is related to the procurement and inventories that cover the day to day business operations of an organization. And this module is integrated with other key modules of the R/3 system such as sales and distribution, product planning, quality management, finance accounting and controlling.
There are a lot of connectivity links between SAP SD & MM to know how SAP SD is integrated with the MM. Let us consider an instance: checking the availability of an item, price details are considered from the MM module, but which is controlled by the SD module—creating inbound and outbound deliveries of goods to update the SD module. This represents that these two modules are interrelated with each other.
Ans: SAP SD modules manage all transactions, including pricing, inquiries, quotations, proposals, and much more. This module supports inventory management and control. SAP SD module contains the components such as transactions, system configuration, master data, and many more.
Ans: Following are the sub-components of the SAP SD Modules:
SAP SD-MD(Master Data)
SAP SD-BF( Basic Functions)
SAP SD-FTT( Foreign Trade)
SAP SD-CAS( Sales Support)
Ans: Sales Support is one of the prominent modules of the SAP SD, and also it is known as SD-CAS(Computer-Aided Selling). The main objective of this module is to help the enterprises and firms to build new sales, tracking past and existing sales, checking the performance of the sales which helps to improve the sales and marketing of a firm and enterprise. And also this module maintains the list of the intended customers to send the emails which help the organizations to improve their sales.
Ans: Sales order processing is the primary focus of the organization, which is the whole side part of the organization business. Following are the key functions in the sales order processing:
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.
Ans: Following are different types of sales orders in SAP SD modules:
Want to store and manage customer- and product-related data in an organization, enroll in our SAP SD Training
Ans: SAP SD module enumerates all the business actions of an organization through the partner function. This function helps the organization to recognize the partner function which has performed in the business process. Also, it stores the record of the performance and details of the customers with whom the business process is carried out.
Ans: Following are various partner types functions that are available in SAP SD module:
Ans: In SAP SD module lot of activities happen, sales activity is one among those activities. Sales activity plays a key role in the business process because it records and observes the organization's sales and helps to improve their sales. Sales activity is classified into two types:
Pre-Sales Activities: These activities occur before the sales of the items to the customers, such as inquiries, quotations.
Post-Sales Activities: These activities occur after the sales of the items/transactions, and it includes support and relationship management.
Ans: Following are two types of pre-sale activities in SAP SD:
Inquiries: It is not a legal document, and used to receive and record the information about the product like availability, cost and delivery of the product, etc. from the customer.
Quotation: It is a legal document which is issued to the customer after inquiry or without inquiry from the customer about the delivery of services and goods.
Ans: Sales document is a database document which represents the business transaction in the sales department. Sales document contain the header of the document and data which is regarding the products and services.
Ans: Following are the various types of sales documents in the sap sd system:
Ans: To define the sale document, the following are the steps:
Enter T-Code: VOV8 or SPRO → IMG → Sales and Distribution → Sales → Sales Document → Sales Document Header → Define Sales Document Type.
Ans: Items category is used to define the control functions of a sale document to know whether the item is suitable for pricing or billing.
Ans: Following are different factors that need to considered while classifying different types of item categories:
General Data Controls
Shipping Data Controls
Billing Data Controls
Ans: Following are various schedule line categories according to the sales document:
No product delivery
No Availability check
Schedule line is suitable for delivery
Movement type 601
Schedule line is suitable for delivery
A product refers to a text item or material
Checking the price of the product
Are schedule lines are suitable for delivery of an item?
When a product has to be considered as a completed transaction
If a product is not delivered to the customer, a message has appeared on the system or not
Which partner function should be considered for a product
Which output is considered for a business transaction
Ans: In sales and distribution pricing is defined as the prices of external customers. And there are some sets of conditions when the cost is calculated. Let us consider an instance: A customer orders a product on a particular day and the sales department stores the data such as, customer details, product, order quantity, and date which tells the fine cost of the product to the customer. All this information is stored in master data records in the form of conditions.
There are various condition types in pricing elements such as sub-charges, taxes, discounts and prices are defined in the SAP SD system. You need to create condition records to manage the pricing information of the pricing elements.
Ans: While processing a sales order, you can perform manual pricing by manipulating the prices of the product. Manual processing is dependent on individual condition types to determine the price of the product. Following are the activities that you go through the manual processing.
Changing a condition
Entering additional price elements
Deleting the price elements
Ans: Condition Table: A combination of keys are required to identify the individual condition records known as a condition table. For instance, entering the price or giving a specific discount to the individual product for a customer.
Condition Record: A system store the individual condition is known as condition record. For instance, we are storing customer material prices by the sales department.
Customer-specific material discount
Price group discount
Freight surcharge (by item)
Ans: In SAP Sales and Distribution module, there are various sales documents to the numerous business transactions. All these business transactions are stored in a sales document which is grouped into the below categories.
Inquiries and quotations which comes under presale documents
Sales Orders which are placed by the buyers.
Outline agreement which includes scheduling documents and contracts
Post sale documents which receive the feedback on the delivered products, complaints, returns, replacement of the products from customers.
Ans: Following are different types of sales order:
Ans: Outline agreement is a long term purchasing agreement which is signed by the vendor to the customer. The agreement consists of terms and conditions, quality and quantity about the certain product/material which is to be supplied by the supplier. And this outline agreement is valid up to a certain period of time.
Ans: Following are the two types of outline agreement:
Contract Agreement: It is a contract between the customer and vendor regarding the quantity and quality of the product up to a certain period of time.
Scheduling Agreement: It is defined as an external agreement with the client and storing the details of the quantity, quality of products/goods and delivery dates of the products. The given information is mentioned as a schedule line in an SAP system.
Ans: Following are the two types of contracts:
Quantity Contract: In this contract, customers need to specify the quantity of product/goods that need to be supplied by the supplier.
Value Contract: In this contract, vendors will specify the overall cost to be paid for the products to the supplier.
Contract Agreement: Logistics ⇒ Materials Management ⇒ Purchasing ⇒ Outline Agreement ⇒ Contract ⇒ Create
Scheduling Agreement: Logistics ⇒ Materials Management ⇒ Purchasing ⇒ Outline Agreement ⇒ Scheduling Agreement ⇒ Create ⇒ Vendor Known
Ans: Copy controls is a defined process where all important transactions from the sales documents are copied from source document to the target document. It contains so many procedures on how to transmit the data from one document to another, and also you can create new procedures to meet the business requirements by referring to the old procedures.
Ans: At three different levels, you can set up copy controls in the SAP system.
Schedule line level
Ans: Access sequence is known as a search strategy to find out the information for a specific condition type. It determines the system order search to find valid information. In SAP System access sequence contains more than one access sequence, which helps to find the exact order data.
Ans: Proposing another item is consistently an incredible technique to improve the business execution of any association. The suggested item may be less expensive, costly or like the items that are mentioned by the client.
Computerized product proposal is one force apparatus that the framework uses to showcase items on the web. They are equipped for coordinating their market prerequisite. SAP CRM module is useful as it comprises information to make such kinds of recommendations.
Ans: Following are the features that the project proposal supports:
Cross-Selling: The item association rules are characterized by items and connection between various items. Each standard contains a main item and the reliant items to be proposed with these items. This permits you to offer different items with the one previously included by a client.
UpSelling & Down-selling: If you are selling a particular item, you can characterize different items to be proposed. These proposed items are characterized by utilizing down selling and up-selling rules.
Top N products lists: With the utilization of SAP NetWeaver BI segment, you can characterize a rundown of top items for an objective gathering.
Proposing Accessories: With the usage of SAP NetWeaver BI portion, you can portray an overview of top things for a goal gathering.
Generating Product Proposal w.r.t specific promotions: You can allocate a specific item to a promotion for a client.
Ans: Following four key activities are included in the consignment stock 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 the customer)
Ans: A specific material can be acquired from various merchants relying upon the client necessity. Thus, the total demand for the products is distributed to different suppliers.
Ans: Logistics → Materials Management → Purchasing → Master Data → Quota Arrangement → Maintain.
Ans: Shipping is characterized as a significant activity in Sales activity. It goes under a logistic chain and ensures client service and dissemination of products.
It is a segment of the Sales and Distribution module and is utilized to perform outbound delivery and other delivery exercises like picking and packing of the products.
Following are the sub-processes in shipping processes:
Delivery processing of the goods
Picking of items
Packing of the goods
Post goods issue
Planning & monitoring of shipping
Defining the modes of transport:
SPRO → IMG → Logistics Execution → Transportation → Basic Transportation Function → Routes → Define Routes → Define modes of transport → Execute.
Till now, we have presented Top Technical SAP SD Interview questions and answers, which helps you to crack the interview. Now we are moving to SAP SD Scenario-based questions that allow you to clear the SAP SD Certification Exam.
Ans: XDO1 T-code is used for Customer Master
Ans: Following three tabs are showing on the Customer Master initial screen:
Ans: General Data----> Control Data----> Tax Information.
Ans: In this issue, you can use a third-party process.
Ans: More than one company code can assign to a business.
Ans: More than one sales organization can assign to a company code.
Ans: One or more plants are assigned in a company code.
Ans: FICO Consultant created company code.
Ans: VKOA T-code is used for account determination.
Ans: Yes, it is possible. One material can exit with more than one plant in the SAP system.
Ans: You can assign a master material to the particular plant, and the system picks from the master material.
Ans: No, the shipping point is required to deliver the products/goods.
Ans: No, it is not possible to create the invoice without delivering the goods/products.
Ans: Following are the various customer groups that you can create in SAP SD system:
One time Customers
Ans: No, it is not possible to process the outbound delivery without a shipping point.
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