SAP SD Interview Questions
What is SAP SD? What are the primary functions of Sales and Distribution?
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.
- Inquiries & Quotes
• Sales Orders
• Sales Return
• Contract & Scheduling Agreements
• Credit & Debit Memo requests
• Rush Orders & Cash Sales
• Back Orders
What is the organizational structure in sales and distribution?
The organizational structure in sales and distribution is
- Sales Organization
• Distribution Channel
• 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
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. While 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
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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.
• VTA from sales order to sales order
• VTL from sales order to delivery
• VTAF: from the billing document to sales order
• VTF 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
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
In R/3 you can represent a company’s structure by defining and assigning corporate structure elements. What is the purpose of doing that?
Enterprise organization diagram. Chart showing the organizational structure of an enterprise, its organization units and how they are related. A combined structure can be created from the point of view of accounting, MM, SD. This structure forms a framework in which all business transactions can be processed.
Which three organizational elements make up a sales area and briefly explain their function?
Sales organization: An organizational unit that sells and distributes products, negotiates terms of sale, and is responsible for these transactions.
Distribution channel: Channel through which salable materials or services reach customers. Typical distribution channels include wholesale, retail and direct sales. You can assign a distribution channel to one or more sales organizations.
Division: Product groups can be defined for a wide-ranging spectrum of products. For every division you can make customer-specific agreements on, for example, partial deliveries, pricing and terms of payment. Within a division you can carry out statistical analyses or set up separate marketing.
Name the three internal organizational elements within a sales organization and briefly explain their function.
Sales Office. Geographical aspects of the organization in business development and sales are defined using the term sales office. A sales office can be considered as a subsidiary. Sales offices are assigned to sales areas. If you enter a sales order for a sales office within a certain sales area, the sales office must be assigned to that area.
Sales Group. The staff of a sales office may be subdivided into sales groups. For example, sales groups can be defined for individual divisions.
Salespersons. Individual personnel master records are used to manage data about salespersons. You can assign a sales person to a sales group in the personnel master record.
What does the term “business area” refer to and how can it be used?
Business Area. The system posts costs and revenue according to the business area.
The business area can be equivalent to the : Sales area (if the accounts are to be posted according to sales) plant/division (if the accounts are to be posted according to products)
The business area is defined in Customizing for Sales.
Business area. A unit in an enterprise, grouping product and market combinations as homogeneously as possible for the purpose of developing unified business policy.
Financial Accounting (FI). A business area is an organizational unit within financial accounting which represents a separate area of operations or responsibilities within an organization. Financial accounting transactions can be allocated to a specific business area.
Briefly explain the relationship between sales organizations and company codes.
Many to One.
What is the central organizational element in purchasing?
Explain the relationship between sales organizations and plants.
Many to Many.
Explain the relationship between sales organizations, plants and company codes.
Many to Many to One.
Can one business area be assigned to several company codes? Which (sub) module of SAP could make business areas obsolete?
Yes in CO .
What is a credit control area? What relationship exists between credit control areas and company codes?
Credit control area. Organizational unit in an organization that specifies and checks credit limits for customers. A credit control area can include one or more company codes. It is not possible to assign a company code to more than one credit control areas.
Which organizational element is central in shipping? Give a definition of it.
Shipping Point: Organizational unit at a fixed location that carries out shipping activities. A shipping point could, for example, be a company’s mail department or a plant’s rail depot. Each delivery is processed by only one shipping point.
What is plant in SAP?
Organizational unit within Logistics, serving to subdivide an enterprise according to production, procurement, maintenance, and materials planning aspects.
A plant is a place where either materials are produced or goods and services provided.
Classification: Business object
Structure: A plant can assume a variety of roles:
As a maintenance plant, it includes the maintenance objects that are spatially located within this plant. The maintenance tasks that are to be performed are specified within a maintenance planning plant.
As a retail or wholesale site, it makes merchandise available for distribution and sale.
As a rule, the plant is the organizational unit for material valuation.
The preferred shipping point for a plant is defined as the default shipping point, which depends on the shipping condition and the loading condition.
For the placement of materials in storage (stock put-away), a storage location is assigned to a plant. The storage location depends on the storage condition and the stock placement situation.
The business area that is responsible for a valuation area is determined as a function of the division. As a rule, a valuation area corresponds to a plant.
Can you assign two different sales organization to the same company code?
To what do you assign distribution channels and divisions?
What are the highest organizational units in SD, MM.PP,FI,CO?
SD: Sales Organizations.
FI: Company Code
CO: Controlling Area
Can you further subdivide a plant? If yes into what?
A plant can be subdivided into storage locations, allowing stocks of materials to be broken down according to predefined criteria (e.g., location and materials planning aspects).
A plant can be subdivided into locations and operational areas. Subdivision into locations takes geographical criteria into account, whereas subdivision into operational areas reflects responsibilities for production.
Can a sales organization sell from a plant belonging to a different company code?
How many shipping points can you assign to a plant?
How many shipping points can you assign to a sales organization?
How do you assign the warehouse number?
Plant & Storage Location. Sales and Distribution – Transfer of Requirements The MRP department is informed about the quantities and deadlines by which incoming orders should be delivered. The system checks the availability of the goods based on the requested delivery date of the customer and creates MRP records which contain all necessary information for passing on to planning. It ensures that the goods are available in time for the delivery. Materials planning transfers the reported requirements and creates orders or purchase requisitions from them etc. For controlling transfer of requirements, you have to carry out the following steps: 1. Each requirement type has to be allocated to one requirement class only.2. The transfer of requirements must be switched on at requirements class level, the sales documents at schedule line level.3. You must define a check group. It is possible to have this check group proposed for the initial creation of a material master record.4. Note that a plant must exist for transfer of requirements to be carried out at document item level. OVZG – Requirement class It specifies the following points: – whether an availability check and a transfer of requirements is carried out for a transaction (for sales documents, fine tuning using the schedule line category is possible),- whether the requirements are relevant for MRP,- the allocation indicator from the sales view which controls the settlement of customer requirements with requirements – whether an item is to be settled to an auxiliary account assignment,- the settlement profile,- the results analysis key. (Use transaction SM30 for V_* configuration)OVZH – Requirements typeV_TVEPZ_V – Assignment of requirement type to TransactionV_TVEP_V – Schedule line category OVZ2 – Define Checking GroupV_TMVFU – Define the checking group that the system proposes when you create a new material master record. You can overwrite the default value for the checking group in the material master record.
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Some materials have been blocked for procurement and production. Even though deletion flag is set for a material/plant level, the order can be still entered ( with a warning message). Is there a way to block such transactions for a material flagged for deletion?
Sales Status field in the sales organization view of the material master may be used to block any transaction for the material.
We can define our own exchange rate types and use them instead of the defaulted types, ‘M’, ‘B’ and ‘G’. How can we overwrite default types in SD?
Exchange rate gets copied from the customer master record. Exchange rate types are to be maintained for the customer in the sales screen of the customer master record. Shipping
The PL00 condition is fine in delivery. But when we try to print to either the screen or printer, an error V1032 occurs. Why?
In order to use the Packing list PL00 (packing slip in delivery) you must do ‘Packing’ in the delivery note (edit->packing)
We have to enter a shipping point while creating a delivery. Is it possible to create delivery without shipping points?
When you are releasing a sales order, choose Sales document -> Subsequent functions-> Create delivery, then the shipping point will be brought in from the sales order. In all other scenarios you have to key in the shipping point. The above described scenario will only work if all items on the sales order are to be shipped from the same shipping point.
SAP allows a non-inventory item and an inventory item to be in the same document till delivery but splits at the time of creation of billing document. Can we combine a non-inventory item with an inventory item in one invoice? Can we treat it as a value item in sales order so that it is priced and then make it as a text item in delivery documents so that it appears in the same invoice and does not split?
Make the non-stock material deliverable, but not pickable. Both items will carry into the delivery, and therefore appear on the same invoice.
Change the copy rule for orders->invoices and deliveries->invoices to specify that invoice combination is permitted. However note that for system to create combined invoices, PO number, payment terms, sales organization, and distribution channel must be identical. Else undesirable combinations may be created by the system.
It is impossible to price at the material level (matnr) , when a material has a pricing reference (mvke-pmatn) set up against it in the master data. Pricing always look for the pref, even if a price is set up against the material and not the pref. How can we price by material and pref?
The field used to look up at the price is defined in Access sequence. You may find a step with PMATN as material number. If you insert a step with MATNR then the system will first look for the material, if not found (use the exclusion tick box) it will look for the pref.
We generated a new condition table. Assigned the condition to access sequence. Created a condition record. Access sequence is assigned to the output type. But when we create a billing document, output screen comes up blank for the output type. When we look up Determination Analysis, we get an error “Note 524 Access not made (Initialized Field)”. What else is required to be done?
Assign output determination procedure to the header of the document and the output type.
How can we set up to have the VAT# be accepted in the Ship-To Master File Data Control screen?
IMG->Fin. Acct.>AR and AP ->Customer acct>Master Record -> Prepare to Create Customer-> Define Acct. Group.
We want to explode Bill of Material automatically at time of Order entry and explode an Equipment BOM in the sales order. What are the setting required?
Use an item category that is configured for bills of material for having a sales BOM to explode automatically.
Standard SAP item categories are :
TAQ – Pricing and inventory control take place at the BOM header level
TAP – Pricing and inventory control take place at the BOM item level
These can be automatically derived using the item category groups ERLA and LUMF, respectively.
How can we make the Customer Group 1 (or 2, 3, 4, 5) a mandatory field?
Logistic General-> Logistics Basic Dat Business Partners -> Customers -> Control -> Define account groups and field selection for customer
Choose Customer Acct. GR. (double-click). -> Field Status: Sales data (double click) -> sales (double click) .Check the radio button against Customer Gr as REQ. ENTRY. Save the settings to make customer GR entry mandatory .
Is there an user exit to copy the data into planning table?
Use user exit MCP20001 and include ZXSOPU01.
Please explain the difference between Ek01 ( Actual Cost) and EK02 Calculated Cost.
These are the condition type that will display the results of the unit costing for certain type of sales document.
If you use this condition type, the result of unit costing is issued to the first position on the conditions screen for the item. The value can be used as a basis for price determination.
If you use this condition type, the result of unit costing is simply a statistical value which you can compare with the price.
Please note the following points :
1) The condition type must have condition category ‘Q’ (costing).
2) The condition type must agree with the condition type defined for unit costing in the pricing procedure.
I have a customer who is being offered two discounts ie k007 and k005, now I want to exclude k007 for the next 2 orders or so? I have set the exclusion indicator for the condition type, but still the condition is being accepted when I create a sales order. Am I missing something, how do I do it?
Need to change the validity of the condition record for the condition type K007 defining it not valid for that particular 2 months. And also the settings of the Requirements as it is correct that it overrules the exclusion. Accumulate the amount of condition types in accounting document
To accumulate the amount of condition types in accounting document without affecting the pricing display in billing document.
As an illustration :-
(all condition types are shown separately in pricing view)
Dr Vendor 2000
Cr Sales 2000 (ZPXX – ZDXX – ZWXX)
One way to do it is :-
Mark the condition types you want to group as statistical and remove the account assignment key.
Create a subtotal in your pricing procedure that will add them together and put in the account assignment key for it. This way the individual components will still display on your pricing screen but FI will only get one posting.
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