SAP MDG Interview Questions

Last updated on Jan 08, 2024

SAP provides a number of opportunities not only for freshers but also for professionals in this vibrant and constantly evolving environment. According to research, the market share of an SAP MDG is 6.8%. Many large and small companies compete to find candidates by offering them attractive remuneration packages. So, we are here to help you in this aspect. We have put together a list of the most frequently asked interview questions and answers from SAP MDG. These interview questions and answers of SAP MDG can help you succeed in the SAP MDG interview and get the job of your dreams as an SAP MDG developer. So, without further delay, let us go through them.

Most Frequently Asked SAP MDG Interview Questions

SAP MDG interview questions for Beginners:

1. What do you mean by SAP MDG?

Ans. SAP MDG, or SAP Master Data Governance, is a state-of-the-art solution in MDM. It facilitates centralized management of master data creation, alteration, and distribution within an enterprise's framework. It also ensures seamless integration.

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2. What are the different SAP products?

Ans. SAP's diverse product range includes SAP S/4 HANA for optimizing business processes with a digital core. SAP Cloud Platform is for cloud-based application development, and SAP HANA, which simplifies operations and houses organizational data.

3. Mention the differences between master data, metadata, and transaction data.

Ans. Master data comprises crucial business information like customer and employee details. Metadata is data about other data, providing additional context. Transaction data records daily business activities and transactions.

4. What is Netweaver?

Ans. Netweaver is a complete technology platform that integrates all mySAP suite products into a single instance, the SAP Web Application Server. It offers the benefit of accessing SAP data via the web and mobile platforms, smoothening user interaction and reducing training needs.

5. List some benefits of SAP MDG.

Ans. The advantages of SAP MDG include the following:

  • Streamlined processes for monitoring data changes
  • Ensures data accuracy
  • Implementing standard tools for data quality maintenance
  • Facilitating data duplication checks
  • Offering insights into data collection, analytics, etc.
  • Transparency in data changes.

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6. List some drawbacks of SAP.

Ans. Challenges in SAP include:

  • Notable application costs.
  • The necessity for specialized training.
  • A time-intensive implementation process.
  • Complex interfaces.
  • Occasional issues in locating master data within the system.

7. Tell me about the scope of the Master data.

Ans. The scope of Master Data in SAP includes a wide range of activities. These include the creation, modification, and display of individual material master data, integration of extensive material credit information, and streamlined amendments in master processing.

8. What is baseline data in SAP AR and AP?

Ans. In SAP AR and AP, baseline data typically refers to the payment terms, usually the date of the invoice document. It can also be the date of passage or ledger posting governing the payment conditions.

9. Define a variable.

Ans. In SAP, variables are set as query parameters within the description, not pre-populated with values. They include user entry, processing type, replacement path, formulas, and characteristics variables.

10. What is the difference between online analytical processing and data mining?

Ans. Online analytical processing is a platform for understanding database metrics and schema. In contrast, mining involves analyzing data to discover stable correlations and systematic relationships among variables.

Intermediate level SAP MDG interview questions:

11. What is the role of ODS in BIW?

Ans. In BIW, the Operational Data Store (ODS) is crucial in storing consolidated and cleansed transaction records. It functions as a data set collated from various sources, which can be analyzed through Infoset or Bex query. ODS objects also facilitate delta updates to InfoCubes or other ODS objects.

12. What is BDC?

Ans. BDC, or Batch Data Communication, is a method in SAP comprising techniques like Call Transaction, Batch Input Session, and Direct Input, which are crucial for data transfer processes.

13. How do the SET and GET parameters differ?

Ans. SET parameters are used in PAI events to capture user input and verify its accuracy. Conversely, GET parameters are employed in PBO events, preparing the screen for user interaction with default values based on prior system inputs.

14. What do you mean by one-time vendors?

Ans. One-time vendors in SAP are used for transactions where creating new vendor master records is impractical. They allow using a dummy vendor code on invoices, with specific details entered directly into the invoice.

15. Explain what internal tables, tables with values, and translucent tables are.

Ans. Internal tables are temporary data storage used during program execution. Value tables verify data at the domain level, while transparent tables maintain the same database and dictionary structure.

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16. What are the standard steps for implementing SAP Payment Run?

Ans. Implementing SAP Payment Run involves:

  • Parameter entry (covering vendor accounts, payment methods, etc.).
  • Scheduling proposals for invoice payment.
  • Recording individual payments.
  • Printing payment forms.
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17. What is the difference between SAP BASIS and ABAP?

Ans. SAP ABAP is a programming language used for customization and reporting, whereas SAP BASIS encompasses core administration modules for network configuration, database management, and handling code updates.

18. What is the presentation application and Database Server in the SAP R/3?

Ans. In SAP R/3, the application layer comprises application and message servers, running application programs, and connecting to databases. The database server is a relational server that maintains all data.

SAP MDG interview Questions for Experienced:

19. What is a company in SAP?

Ans. In SAP, a company represents the top entity for generating financial reports like profit and loss statements and balance sheets. An enterprise can have multiple company codes, each sharing the same chart of accounts and fiscal year.

20. What are the common transport errors?

Ans. The common transport errors include

  • Return Code 4 (import warnings)
  • Return Code 8 (syntax errors or activation issues)
  • Return Code 12 (import abortion due to inactive or missing objects)
  • Return Code 18 (system failure during import).

21. What are the business challenges in SAP MDG?

Ans. Challenges in SAP MDG include:

  • Ensuring ROI.
  • Addressing master data quality issues.
  • Regulating master data management processes.
  • Integrating business models with master data operations.

22. Explain the method to process consumer data in SAP MDG.

Ans. Processing consumer data in SAP MDG involves:

  • Creating and modifying clients.
  • Managing change requests.
  • Utilizing worklists for necessary modifications.
  • Adapting user interfaces and approvals as needed.

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23. What are the main functions and features of SAP MDG?

Ans. Critical functions of SAP MDG include data content monitoring, insights into data quality, continuous integration and monitoring of processes, enhanced control over master data, and reliable, accurate data analysis.

24. What does SAP do?

Ans. SAP designs technological systems for businesses of all sizes, enabling complete data management from procurement to customer satisfaction. It supports on-premises or cloud deployment and assists companies in managing their entire value chain.

25. What is the dispatcher?

Ans. The dispatcher in SAP is a component that manages client requests, queuing them for processing. It plays a crucial role in system efficiency and data handling.

26. List two distinct types of communication services.

Ans. Two essential communication services in SAP are Gateway Services, which facilitates connectivity via CPI-C protocol, and Message Delivery Service, which exchanges short internal messages between application servers.

27. What are pooled tables?

Ans. Pooled tables in SAP store control data and are part of a table pool, a physical database table where pooled table information is consolidated.

28. List some of the benefits of Business Warehouse reporting over R/3.

Ans. BW offers advantages over R/3 by using a database and OLAP concepts for data collection and storage, facilitating more straightforward and efficient data analysis.

29. What is the difference between a domain name and a data element?

Ans. The domain in SAP typically defines the field type and length, allowing for the reuse of various attributes with a consistent description. In contrast, a data element utilizes the domain to determine a field within the data dictionary, offering flexibility in reports. A single domain can be adapted for multiple data elements, tailoring the description.

30 How does a receivable account's cash allocation differ from the residual and partial payment?

Ans. In the context of SAP, cash allocation in receivable accounts varies between residual and partial payments. For example, with a $100 invoice marked as A456, a $70 cost offsets the invoice, leaving a $30 balance in partial payment. In a residual payment scenario, the same $70 payment clears the original $100 invoice, but SAP generates a new invoice item for the remaining $30 balance, reflecting the residual amount to be paid.


Recruiters from prominent companies frequently ask these SAP MDG interview questions. These insights will be very useful in preparing for your interview and securing your dream job. If you have any more questions or need further clarification on SAP MDG, feel free to ask, and we'll provide additional information.

About Author

Kavya works for HKR Trainings institute as a technical writer with diverse experience in many kinds of technology-related content development. She holds a graduate education in the Computer science and Engineering stream. She has cultivated strong technical skills from reading tech blogs and also doing a lot of research related to content. She manages to write great content in many fields like Programming & Frameworks, Enterprise Integration, Web Development, SAP, and Business Process Management (BPM). Connect her on LinkedIn and Twitter.

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