1. What is SAP SD?

One of the primary modules, sales, and distribution, abbreviated as SD, is

developed by SAP (System Application Product) to manage billing, selling, shipping, and
transportation of several products they own. This module registers consumers' data, along
with the product they've purchased.

2. What is the primary function of SAP?

The primary function of SAP is to smoothly run and grow the businesses and
services in numerous large companies.

3. What are the areas we use SAP?

Initially developed by IBM, SAP was made to resolve software application
problems. Later, it came up with SAP R/3 application software, where R stands for real-
time data processing and 3 represents Application, Presentation, and Database Leaders.
SAP became popular in no time. It was adopted by giant enterprises that resulted in
adding many other SAP modules, such as finance and accounting, production and
planning, controlling, materials management, and more, to cover specific areas in a
business.

4. What are the key components of SAP SD?

 Contract Handling and Management
 Customer and Vendor Master Data
 Transportation of products
 Credit Management
 Shipping of Material
 Information System
 Billing-related
 Sales Activities
 Foreign Trade
 Sales Support

5. Explain organizational structure in SAP SD.

Components in SAP, like sales areas, divisions, distribution channels, sales offices,
and sales groups, follow these two steps within an organization:
 Create organization element in the SAP system
 Link each element according to the requirement

6. Describe material management in the SAP ERP system.

Material management is one of the most significant modules in SAP ERP systems,
linked with other SAP R/3. All these other modules are interlinked with each other. The
primary function of material management is to keep a record and monitor everyday
business requirements and operations in the inventory.

7. How is material management associated with SAP SD?

Multiple links are there between SAP SD and SAP MM. Material management is
used to create inbound and outbound sales and distribution updates. Likewise, MM is used
to find out the price details and availability of the product but is controlled by the sales and
distribution module.

8. What are SAP SD modules?

 SAP SD modules contain all the customer data and related information about their
services. It is one of the essential modules in SAP ERP that deals with billing, selling, and
transportation of goods and services of the organization. SAP SD also contains several
sub-modules for seamless functioning of the software.

9. Name the sub-modules of SAP SD.

 SAP SD-BF (Basic Functions)
 SAP SD-MD ( Master Data)
 SAP SD-SLS (Sales)
 SAP SD-TBA (Transportation)
 SAP SD-SHP (shipping)
 SAP SD-FTT (Foreign trade)
 SAP SD-CAS (Sales support)
 SAP SD-BIL (Billing)

10.Explain about sales support.

Also called CAS (Copter Aided Selling), sales support is one of the crucial
components of SAP SD. The primary function of this module is to assist companies and
large organizations in building new sales, tracking existing and old sales, and maintaining
a record of the performance along with the sales. It is a helpful module to look up the work
progress and make changes in the procedures, if necessary. Gathering information on
interested customers can be done through emails, which helps the business to a great
extent.

11.What are the main functions of sales order processing?

 e-Transfer of documents and printing them
 Checking the availability of the purchased articles
 Checking for incomplete data
 Scheduling goods delivery dates
 Checking the status updates of sales transactions
 Calculation of prices and taxes

12.Name the type of sales order (modules) related to SD.

 Availability Check
 Tax Determination
 Sales Order
 Link Points
 Credit Check
 Costing

13.What is the sales area in SAP SD?

The sales area in the SAP SD helps to determine what marketing strategy has been
adopted by one particular division for improving sales. It combines the sales organization,
divisions, and distribution channels.

14.What is the distribution channel in SAP SD?

Distribution channels in SAP SD consist of details and information on distributed
products. It keeps a log of all the services and products provided to the user by the
organization.

15.Explain division in SAP SD.

The product and service lines of a product in an organization are shown by division
in SAP SD.

16.What is a partner function?

 SAP SD counts all the steps within an organization through partner functions.
These functions allow the organizations to keep a record of which partner is linked to a
particular customer, the performance record, and the details of customers or partners with
whom business is carried out.

17.List the types of partner functions in SAP SD.

 Partner Function
 Partner Type
 Vendor
 Customer
 Shipping
 Forwarding agent
 Selling
 Human resource
 Sales personnel
 Responsible for employees

18.Explain sales activity in an SAP SD.

Sales activity is one of the activities that take place in SAP SD. They are the tasks
that sales personnel undertake to improve sales.

19. Name and describe types of pre-sales activities

Pre-sale activities are those activities that occur before the product's sales to
customers. Inquiries and quotations from the vendors are a few of the pre-sale activities.

20.List some of the general data control elements.

To determine the types of item categories, data control elements are used. Chances in
the existing item categories can also be taken, or new ones can be created using data
control elements. A few general data control elements are:
 What is the size of a complete product?
 What outputs are acceptable for business transactions?
 Check if the item is suitable for shipping and billing.
 Check if the pricing has to be carried out for an item or not.

21.What is an outline agreement?

An outline deal or an agreement is a long-term purchasing agreement signed with a
vendor. Numerous terms and conditions are mentioned in the agreement stating the
materials are supplied by the vendors. There are two types of outline agreements under
SAP SD - scheduling agreement and contract.

22.What is a contract in an outline agreement?

The contract is a formal agreement signed between the vendor and the customer for
a period of time. There are two types of contracts - value and quantity.

23.Describe the process of creating a 'scheduling agreement'.

A scheduling agreement is an external agreement that applies to the customers and
contains product details, delivery dates, and services.

24.Describe what the types of contracts are.

There are two types of contracts:
 Quantity contracts: In this type of contract, the vendor has to write the terms and
conditions of the contract according to the material quantity being supplied.
 Value contracts: In this, the vendor has to pay the value for their services and
mention the same in the contract.
25.What are schedule line categories?
In a sales document, all the items are divided into schedule lines, which are
assigned to multiple control elements. The scheduled lines mention all the details, such as
quantity, delivery dates, inventory availability, and more.

26.What are the schedule line categories in different sales documents?

According to the item category and sales document type, scheduled lines are
categorized. All these control elements are related to shipping and general data, which are
used to categorize schedule lines.

27.What do you mean by copy control?

It is known as copy control when all the crucial data, such as transaction details,
are copied from one document to another. The SAP system consists of copy routines,
which keep a record of how the systems copy data from one source to another target
document. Such type of information helps create additional routines that will meet the
business requirements.

28.How do copy controls work in SAP systems?

There are three different levels in a sales order, which are as follows:
 Header level: Used when the system copies the data from the header source to the
target header document.
 Item level: Used to find out the line item status.
 Schedule line level: Used when copying sales order is done from the billing
document.

29.How is pricing done in SAP SD?

Pricing in SAP SD is done to figure out the prices of external customers or
vendors. There is some predetermined set of conditions when the pricing is calculated.

30.What is manual pricing?

During the sales order process, manipulation of prices can be done manually on the
item level as well as the header level. The manual manipulation is dependent on individual
conditions to determine the price. The set of activities goes as follows:
 Enter additional pricing elements
 Delete the pricing element
 Change the condition

31.What is the condition table and record?

To identify an individual condition record, a combination of keys is required. This
is known as a condition table. The system stores related information in a particular format
and specific condition, which is called a condition record.

32.What is the access sequence?

An access sequence is a search procedure used to find data for one particular type.
The system search order path can be determined to retrieve the data. An access sequence
consists of more than one access sequence that is used to search for a valid record relevant
to the conditions until it's found successfully.

33.What is pricing by item category?

All the items are not suitable for pricing. The item is kept empty/blank if found it's
not suitable or relevant for pricing. Item category is used to determine the prices of such
items.

34.Name the pricing and types.

 The price of a material depends upon several factors. To determine the price of the
material, the system is dependent on various predefined price types, which are referred to
as gross prices. There are three types of cost in a system - price list type, material price,
and customer-specific price.

35.Explain SAP SD product proposals.

A top-notch strategy to improve any company's sales performance is proposing a
new product. These products can be expensive, cheap, or similar to the products requested
by the customer. The system uses a power tool to market products online. This tool is
known as an automatic product proposal, which is capable of matching their market
requirement. Anyone can make such proposal types by using the SAP CRM module.

36.What are the features that the project proposal supports?

The relationship between different products is cross-selling. Its rules suggest up-selling,
down-selling, leading, and sub-associated products.
Generating product proposals, proposing accessories, and top N product list with respect
to specific promotions.

37.Explain the types of sales orders.

Different transactions define different sales document types. Business transactions are
grouped into sales documents categories as follows:
 Sales orders
 Inquiries and quotations
 Post-sale documents
 Outline agreement

38.What is the quota arrangement?

The materials to manufacture a product are taken from several local vendors. In a
quota arrangement, a quota is assigned to each supply source. The one who drops the
lowest quota pricing will represent the product production.

39.What do you mean by the special business process in SAP SD?

The most significant feature of the SAP SD module is that it can create a special
business process like customizing the products and getting them manufactured personally,
apart from normal sales orders.

40.Explain consignments processing.

A few products are owned by the companies that are located at the client's location.
These products are known as consignments.

41.Explain shipping in SAP SD.

Shipping activity is tracked to ensure logistics are running smoothly and customer
service and distribution are going seamlessly. Shipping is used to do outbound delivery
and other activities like packing goods and picking them to transfer to their destination.

42.What is picking, packing, and posting a good issue in delivery processing?

Picking, packing, and posting good issues in delivery processing - all these
procedures are done strategically in the SAP warehouse management system. SAP SD
finds the best way to handle goods by avoiding disturbances with the help of available data
in the systems. Pickings are of two types: manual and automatic. Picking are of three
types: self pick-up, individual pick-up, and pick-up as per defined intervals.

43.How is credit management done in SAP SD?

 The next step after the sales have been made is to keep a record of goods sold and
money collected. This can also be done in the SAP SD module. The following are the key
features of credit management:
 Automatic credit check
 Simple credit check

44.What is mapping an enterprise structure in SAP SD?

An enterprise structure is defined by several organizational units, like distribution
channels, clients, company code location, and more, which represent the corporate world's
business structure.

45.Describe transfer order.

A transfer order contains all the information related to transferring materials in and
out of the warehouse. It also contains data related to storage to execute logical stock
transfers within the allotted time frame.

46.What do you mean by shipping points?

One delivery is only processed by one shipping point, independent organizational
entities. In a shipping point, processing and monitoring of all deliveries and goods are
carried out.

47.How can you customize rebate processing in SAP SD?

A special agreement is granted to the user on a specific sales volume over a
particular time, known as a rebate agreement. To customize rebate processing,
Follow these steps:
 Define rebate agreement types.
 Create condition type groups to group different condition types in order to
calculate the rebate.
 Create new condition types.
 Follow a procedure to add pricing to the newly created condition.
 Account determination is done.
 GL accounts are configured based on customer group/material group/account key
combination.
 Activate rebate processing to document types, sales organization, and more.
 Create a rebate agreement.
 Change pricing procedure.
 The set of transactions must be visible to reflect how the rebate is calculated at the
invoice level.

48.How can you close the backorders?

 Create an accurate account estimate of demand using past purchasing patterns.
 Work with the supplier to track when back-ordered items are available.
 Increase stocking capacity.
 Diversify suppliers, if possible.
 Be proactive about communicating with customers.
 Partner with a professional fulfillment company.

49.Why should you select SAP over others?

SAP helps outsource a business's security, infrastructure, and continuity at lower
costs. Customers prefer several SAP platforms for real-time analytics because of their
quick processing and solution capability. SAP is localized in over 120 countries and
operates in 37 languages, which makes it versatile to collaborate with various companies.

50.How can you explain the access sequence for header conditions?
There is no determination at the header level, so one cannot change the access
sequence for header conditions in SAP. Use a group condition at the item level to access
 the sequence. Even though a condition is entered manually on the header, it is still
distributed to the item level as that's where pricing applies.

51.What is the standard condition that can be only used to see the calculations
and will not calculate pricing?
Cost Condition Type – VPRS

52.VPRS condition type used for?

Just to show the cost - Tick mark Statistic in pricing procedure determination and un-
tick the print option if you don't want to show to the end client.

53.What is subtotal?
To save the temperorary value, we used subtotal column to store the value temporary
in tables so we can further perform calculations form that saved value. E.g. Discount on
discount, Table Name for VPRS COST: KOMP WAVWR – B

54.What is the difference between Requirement, Alt. Cal. Type, & Alt. Cond.
Base value?
These 3 (Requirement, Alt. Cal. Type, & Alt.Cond. Base value) are routines or
requirements or formulas and using these formulas we can calculate our condition type
with any other condition type. Also we can complete any requirements with any
calculations.

55.When you will use requirement condition type?

To trigger the condition type. E.g. R100 condition type - Routine No.55- Free goods
pricing (When you have maintained price as B - Pricing for Free goods in the Item
category

56.When you will use alternative calculation types?

To perform complex mathematical calculations (addition, subtraction, division, profit
margin etc.) e.g. Routine No. 2 - Net Value, 11 - Profit Margin

57.What's the usage of Alt. Base Value?

We can use Alt. Base Value is when there is base involved like weight. (e.g. Freigh
charges based on weight, so we can use base value as weight to perform calculations.
Another example would be payment terms as payment is the base value. Routine no. 28

58.What is the use of Account Key?

Account key is the mediator between your condition types and accounts. It makes sure
to connect the right account from your right condition type.

59.Account Key Codes

 ERL -Revenue/Base Price
 ERS - Sales Deductions/Discount
 ERF - Freight Revenue
 MWS – Tax
 ERU - Rebate Accruals
 ERB - Rebate Deductions

60.Accruals
ERU - Rebate Accruals
ERB - Rebate Deductions

61. Which T-Code are Using for Customer master?

 XDO1

62. How many tabs are showing Customers master initial screen?
3 Tabs. General Data, Company Code and Sales data.

63. Where can we found the tax information in customer master?

General Data----- Control Data ---- Tax Information

64. What is the difference between transaction data and master data?
Master Data refers to the characteristics of an object whereas transaction data
refers to all the transactions that are carried out using the object. Any data which does
not change so frequently in master data like configuration settings like company data,
personal area etc. Any data which keeps changing so often in transactional data, like
employee data.

65. A is your client; B is your client’s customer. B need X material, but X

material is now out of stock, then you can solve this problem?
In this case, we are using third party process. This process uses a purchase order
(Which is sent to you by vendor). Also, invoice verification is used further along the
process to check that the invoices you send to your customer are the same material and
quantity as that which the vendor sent to the customer (But obviously shipped directly to
your customer).

66. How many company codes can you assign to a business?

One or more company code.

67. How many sales organization assign to a Company Code?

One or more.

68. How many plants are assign in a company code?

One or More.

69. Why are we creating Z reports?

SAP have provided a lot of reports in each module. However, if the standard
reports do not meet the business requirement, we can develop our own reports. ABAP
custom reports are called z reports because any program developed have to start with Z.

70.Who is creating Company Code?

FICO Consultant

71.Which T-Code are using for Account Determination?

VKOA.

72. How to maintain Pricing Procedures?

In Pricing Procedures 16 steps are needed to maintain. These are Step, Counter,
Condition Type, Description, From, To, Manually, Mandatory, Statistically, Print, Sub
Total, Requirement, Alternative Condition Type, Alternative condition base value, Account
Key, Accruals Key.
73. What is Alternative condition base value? Give an example.
This column indicates a formula assigned to a condition type in order to promote an
alternative base value for the calculation of a value. For example, you may specify a
formula that uses a subtotal of 4 from the subtotal field and then modifies it slightly by
dividing it by 2 and using the resultant value as a base value for a condition type.
74.What is Alternative condition type? Give an example.
 This column is used to specify that the system is to use the formula represented in this
column as an alternative in finding the value of the condition type, rather than by using
standard condition technique. This is may be used, for example, to calculate complex tax
scenarios.

75.What is Invoice correction?

It is a sales document type(RK). This documented process a new way of processing
complaints and issuing credit and debit memos. The document allows us to correct the
quantity and the price for one or more faulty items on an invoice. Each invoice correction
request is made in reference to a (mandatory) invoice. We cannot create one in reference to
an order or quotation. Each invoice correction request contains two items for each item on the
invoice. The first item is the value and quantity copied from the invoices; this appears as the
credit item. The second item is the debit item, which represents the correct quantity and or
value. Should you change this second debit item due to new pricing etc, the difference
between the two would then be automatically passed on to billing as either a credit or debit
memo.

76. How many sales document types?

Sales Document Header (VBAK), Sales Document Item (VBAP), Sales Document
Schedule line (VBEP).

77. Which T-Code are using for SD and MM Integration?

OBYC.

78. Which T-Code are using For SD and FICO Integration?

VKOA.

79. What’s the process of Pricing Procedures Determination?

Sales Organization, Distribution Channel, Division, Document Pricing Procedure,
Customer Pricing Procedure, Pricing Procedure, Pricing Procedure(Description),
Condition Type, Condition Type(Description).

80. What is Sales organization, Distribution Channel, Division?

Sales Organization: An organizational unit sells and distributes products, negotiates
term of sales, and is responsible for these truncations.
Distribution Channel: This channel through which materials or services reach
customers. Typical distribution channels include Internet sale, 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.

81. How many Plant can you assign to a Company Code?

One or More.

82. One material can exist within one or more than one plant. Is it possible?
Yes, it’s possible.

83. What is ASAP methodology?

ASAP streamlines the implementation by providing templates, methods, tools and
accelerators that have been built on the success of thousands of previous SAP
implementations.
This methodology divides the implementation process into 5 phases.

 Phase 1: Project Preparation.

 Phase 2: Business Blueprint.
 Phase 3: Realization.
 Phase 4: Final Preparation.
  Phase 5: Go-live and Support.

84. What is Item Category? How can we assign it?

The sales item category is one of the most important fields in the SAP sales order. It
controls the sales document flow and also impacts the schedule line category. The item
category of the sales order affects the delivery and finally impacts the billing process as
well.
Sales Document Type, Item Category Group, Item Category Usage, Higher-Level
Item, Default Item Category.

85. What is Higher Level Item Category? How it's controlled?

Higher level item category depends upon the material type and item category of the
other item. The higher level item category by looking at any linkage of items and then
tracing back to the main item category.
Higher Level Item Category is the item category of the high-level item. It controls the
item category of the item along sales document type, item category group, and usage.
Basically higher level item makes the functionally of how the item should behave
along with material type.

86. Where do we assign Calendar in the master records?

In IMG screen Global Settings

87. What is meant by condition technique: can we say it is the combination of

condition types, access sequence and condition tables?
Yes

88. How to utilize long material number in SD Sales BAPI?

Instead of the of 'MATERIAL' field, user must use 'MATERIAL_LONG' field

89. What to do if in case there are multiple down payment items in final
billing document?
In case, a cleared down payment request is required to be cancelled then the user
must perform the following steps in order to avoid doubled down payment items in the
final billing document:
 The clearing should be set back via t-code FBRA
 The clearing needs to be cancelled via t-code FB08
 Finally, the down payment request can be cancelled by VF11.

90. Getting Error message FF799 while releasing SD invoice to accounting

User is required to maintain the default tax jurisdiction code in transaction OBCL
This must be at a state level, that is only first level which has to be maintained.
For instance:
 Inside t-code OBCO the tax procedure encompasses jurisdiction code structure 2 2
0 0 the default tax jurisdiction code should be XX00 (where XX is the code of
first level)

91. How can the we use report RVKRED08?

The term 'Period' refers to an option visible on the initial screen for report
RVKRED08 where a selection option for 'Date of next credit check' has been provided,
in the documentation.
The default period is referred to as the starting to the end of the current month, this
can also be adjusted in case the date falls outside this default period.
The option 'Take release data into account' permits the user to exclude all those
documents which have been released manually. For Instance, incase this option is
selected, all documents which were released manually will be excluded when the report
is executed.
92. How can the user suppress pro forma billing document cancellation?
 There is no authorization check available for restricting the completion of a pro
forma billing document.
 The 'Complete' field can be inactivated via modification
 In program MV60AF0C_CUA_SETZEN the internal table cua_exclude is
required to be filled with 'FERL' in field FUNCTION.
 By performing this function, the field 'Complete' will be inactivated and pro forma
billing documents cannot be cancelled.

93. How can the user verify the output processing status log?
Post output processing (e.g. for billing document), user can verify the output
processing log in VF03 through the menu path Goto -> Header -> Output: by selecting
the relevant output type and clicking on 'Processing log'.

94. Does tool ‘Synchronize Payroll Tax Data’ update any information in the
BSI Tax Factory system?
Yes. The tool will detect the mapping between SAP Tax Authorities (e.g. ‘FED’) and
BSI Tax Authorities (e.g. ‘00000000’) and it automatically creates any missing mapping
in the BSI Dataset which subsequently corresponds to the client of the system in which
the user ran the tool. This is done when user selects to run the tool in productive mode
for client-specific tables.

95. Is it possible for a material to have Two Base Prices?

Yes, by maintaining the validity period in records & the value gets triggered as per the
pricing date mentioned in the transaction (Order).

96. How the price is get determine in sales order?

The price is get determine in sales based on
 Sales are
 Customer pricing procedure
 Sales document
 Pricing procedure
The pricing procedure is assigned to the combination of sales area and customer
pricing procedure and document pricing procedure by using transaction code ovkk

97. Difference between Delivery and Billing?

Billing is a document which raised to the payer. It includes the amount he has to pay
for the product/service he is receiving from the business.
Delivery is a document which contains the information related to the delivery of the
product. Like delivery quantity, actual delivery date, packing, picking
etc. Generally, delivery document can be created for the ship-to-party.

98. What is the Use of Requirement in Pricing?

Requirement is a field which is used to validate a condition type i.e. if certain
condition is met then only the corresponding condition type will be accesses else it will
not.
For Ex: Plant is a pre-requisite to pick the Pricing while making a Sales Order, hence
until or unless Plant name is inserted in SD pricing will not be picked as its a
requirement.
99. Important SD Determination procedures- interview questions
1. Item category determination-----VOV4
2. Schedule line category determination--------VOV5
3. Shipping point determination-------------------OVL2
4. Storage location determination-------------OVL3
5. Plant determination
6. Pricing Procedure determination-----------OVKK
7. Route Determination
8. Output Determination -------------VV11, VV21, VV31
9. Revoune Account Determination --------------VKOA
10. Batch Determination
11. Credit Control Area ---------------OVA8
12. Requirement Type
13. Availability Check
14. TOR
15. Delivery Scheduling