SAP MDG Interview Questions

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?

SAP MDG refers to SAP master data governance. This is an advanced approach to Master Data Management technology that offers out of the box Master Data Management to Centralize the creation, modification and distribution of master data with the enterprise infrastructure or integration of master data.

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2) What are the different SAP products?

Following are the products included in SAP:

SAP S/4 HANA: It allows organizations to optimize decision-making and speed up productivity with a digital core which supports all the critical business processes.

SAP Cloud Platform: It produces and develops applications with cloud infrastructure software like PaaS. 

SAP HANA: It distributes the business intelligence, simplifies the business operations as well as the IT environment, which holds all the data of the organization.

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

Master data: This includes essential business information like employee information, customer information and material information. This data is the same as the reference data. For Example, suppose a consumer buys ten units of your product instead of requesting the customer's delivery address ten times. In that case, the same information may be extracted from the client's master data.

Metadata: Metadata is information relating to other data that includes information or MetaObjects.

Transaction data: It provides the details of everyday transactions.

4) What is Netweaver?

Netweaver is a built-in technology platform that allows all mySAP suite products to operate on a single NetWeaver instance called SAP Web Application Server. The great thing about using Netweaver is that SAP data can be accessed through the web (HTTP protocol) and even mobile. This way, we can save on the costs associated with training users on the SAP Client GUI.

5) List some benefits of SAP MDG.

Following are some of the benefits of SAP MDG.

  • Standard processes to monitor changes in information
  • Standard work processes to ensure information is accurate
  • Standard tools to ensure the quality of information
  • Checking the duplicates
  • Data collection & clean-up
  • Business Analytics
  • Transparency regarding information changes
  • Transparency in the flow of data
  • When, what and who

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6) List some drawbacks of SAP.
  • It costs so much.
  • It Requires highly trained people.
  • It takes time to implement.
  • The interfaces are somewhat complex.
  • It does not identify where the master data is located.
7) Tell me about the scope of Master data.

Following are the scopes of Master data.

  • Creation, modification, search and display of the individual material master data. 
  • Extensive inclusion of out-of-container material credit that includes information on focal and order and authoritative unit information
  • Amendments in master processing
  • File transfer
8) What is baseline data in SAP AR and AP?

Baseline data refers to the payment terms that apply. Normally, the baseline data is the date of the document on the invoice, but it also may be the date of passage or posting of the ledger.

9) Define a variable.

Variables are query parameters set in the parameter's query description that is not populated with values prior to entering the queries into the workbook. Following are the types of variables:

  • Default or User entry type
  • Processing type
  • Replacement path
  • Text
  • Formulas
  • Characteristics variable 
  • Hierarchies
  • Hierarchy nodes
10) What is the difference between online analytical processing and data mining?

Online analytical processing is a monitoring platform that is designed to understand the measurements, schema, and compositional facts within the database.Data mining is a data analysis method for finding stable correlations or systematic relations among variables.

Intermediate level SAP MDG interview questions:

11) What is the role of ODS in BIW?

At the document level, the ODS object is used for storing debugged and consolidated transaction records. This is a term which refers to a data set grouped from one or more data sources. This data collection may be analyzed through an Infoset or Bex query. A delta update may update data from an ODS object to InfoCubes objects or other ODS objects on the same device or through systems. Compared to the multi-dimensional data storage of InfoCubes, ODS objects store the data in transparent and flat database tables.

12) What is BDC?

BDC refers to Batch Data Communication. Methods of BDC are:

  • Call transaction
  • Batch Input session
  • Direct Input

13) What is the difference between

Generally, domain refers to the type and the length of the field. It may be reused for declaring an attribute with the fixed description. The domain is used by the data element for defining the field in the data dictionary with varied descriptions. A single domain can be used in many data elements by changing the description.

14) How do the SET and GET parameters differ?

Generally SET parameter is used in PAI events to a screen. The user may have given some value for a field; once we check the accuracy of this value, we can use the SET parameter id in the PAI. The GET parameter is used in the PBO event. During PBO, the screen for display will be prepared for the users. On the screen, some fields must be filled with some default values. The default values are the values that are entered for that particular field during the logon into the SAP system.

15) What do you mean by one-time vendors?

New master records cannot be established for Vendor trading partners in particular industries. One-time vendors enable us to use the dummy vendor code on the invoice entry. The information that is stored in the vendor master file will be directly entered into the invoice.

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16) Explain what are internal tables, tables with values, tables and translucent tables?

Internal table is a standard for entities which reside only during the execution of the program. The table will be verified at the field level. The value table will be verified at the domain level. Transparent tables will have the same format in the dictionary as well as the database and would have the same details and fields.

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17) How is the cash allocation of a receivable account different in the

Let us assume an invoice A456 is sent for $100, and if the customer pays $70, it will offset the invoice with a practical bill by leaving a balance of $30. In residual payment, when the customer pays $70, the invoice A456 for $100 will be cleared, and a new invoice line item will be generated for $30, the remaining balance.

18) What are the standard steps for implementing SAP Payment Run?

Following are the standard steps to implement SAP payment run:

  • Entry of Parameter: It covers the vendor accounts, business codes, payment systems, etc. 
  • Proposals Scheduling: the system generates a set of invoices to be charged.
  • Booking of Payment: Individual payments will be recorded in the ledger.
  • Printing the payment form
19) What is the difference between SAP BASIS and ABAP?

SAP ABAP: It is a programming language that is used for the SAP customization, reporting and creation of types.

SAP BASIS: Although SAP BASIS is the main thing, the administration module will be used for network configuration, database administration, managing the code updates, upgrades, etc.

20) What is the presentation application and Database Server in the SAP R/3.

The application layer of the R/3 system consists of the application server and the message server—the application programs of the R/3 system run on the application servers. The application servers are connected to the database, the presentation elements, etc., through the message server. Entire data will be maintained on the relational server known as the database server.

SAP MDG interview Questions for Experienced:

21) What is a company in SAP?

A company is a top entity in which the financial results like profit and loss statements and the balance sheets are generated as per the requirements of the organization. An enterprise may have one or more company codes. All the enterprise codes must have the same chart of accounts and the fiscal year.

22) What are the common transport errors?

Following are the frequent transport errors: 

  • Return code 4: It indicates imported warnings, program generation, and columns or missing rows. 
  • Return Code 8: It indicates imported syntax, program error generation, dictionary activation error, etc.
  • Return code 12: It shows that import is aborted as the object is inactive or missing.
  • Return code 18: It shows that import is aborted because of the system failure while importing.

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23) What are the business challenges in SAP MDG?

Following are some of the challenges that the companies face. 

  • Confirm that the ROI is implemented in SAP MDG
  • Solving master data quality issues related to business-critical processes
  • Make sure that the master data management process and rules are appropriately regulated
  • Dive into the business model and master data management operations
24) Explain the method to process consumer data in SAP MDG.
  • The work methods have led to the creation and modification of clients. 
  • Change requirements guide the acceptance period and endorse new or modified information.
  • Worklists make changes as needed 
  • Changes to be reviewed are recorded.
  • Where necessary, multipurpose user interfaces and approvals can be adapted to every stage of the work process.
25) What are the main functions and features of SAP MDG?

Following are the important functions and features of SAP MDG:

  • Monitoring Cockpit data content in SAP MDG.
  • An explicit or direct insight into the current state of the data quality 
  • Integrating and monitoring SAP MDG processes continuously for resolving the issues related to information 
  • Enhanced quality and control of master data in SAP ERP
  • Analysis that includes master data should be reliable and accurate.
26) What does SAP do?

Technological systems are designed by organizations for small, medium-sized and large-sized companies. All business methods can be mapped and tailored to standard software, networks, industry solutions, and technology. The application brings together and manages the data on the platform, from the purchase of raw materials to manufacturing and customer satisfaction. SAP solutions may be deployed on-premises or on the cloud for assisting the companies in effectively evaluating and designing the entire value chain. The SAP solution can also be used for forecasting. For Example: when a machine is to be repaired or how will the revenues grow within the next six months. Moreover, SAP enables the customers to link business processes easily that operate data with the experience data on the factors like consumer input or buying experience. This allows companies to identify and respond to their consumers in a meaningful way.

27) What is the dispatcher?

The dispatcher is one of the components which needs the client's systems and stores the request in a queue. 

Return code 12: It shows that import is aborted as the object is inactive or missing.

Return code 18: It shows that import is aborted because of the system failure while importing.

28) List two distinct types of communication services.

For managing the communication, we need to use two different services that include: 

Gateway services: It allows connectivity between the R/3 and external applications through the CPI-C protocol.

Message Delivery service: This service is used by the App server for exchanging short internal messages.

29) What are pooled tables?

Pooled tables store Control data. By combining several pooled tables, a table pool is formed. A table pool is the physical table of the database where all the information of the allocated pooled tables is stored.

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

Business Warehouse uses a database and the concepts of OLAP for collecting and storing the data while R/3 was set up for transaction processing. We can also perform the same analysis even with R/3, but it is very easy with a business warehouse.


All the above are some of the frequently asked interview questions in SAP MDG that the recruiters from reputed companies asked. We hope you found these questions helpful. These questions may help you to clear your interview very easily and grab your dream job. If you could not find answers to any of the questions related to SAP MDG, feel free to comment in the comment section. We will get back to you with the answers.

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Kavya Gowda
Kavya Gowda
Research Analyst
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.