SAP SD Interview Questions

Explain the SD module in SAP?

SAP SD refers to the SAP Sales and Distribution module. This is an important component of SAP ERP. In an organization, the SAP Sales and Distribution module is used for the management of selling, billing, shipping and transportation of the products and services. SAP SD module belongs to SAP Logistics module. It will manage the customer relationships that are from raising the quotation to the sales order as well as the billing of the product or services. It is associated with other SAP modules like Material Management and Product Planning.  

Explain SAP SD organizational structure.

SAP SD organization structure mainly involves two steps:

• Creating organizational elements in the SAP system
• Linking every element according to the requirement 
  The sales organization is at the top level of the SD organization structure. It manages the distribution of goods and services. SAP recommends that a minimal number of sales organizations be maintained within the organizational structure, making the reporting process easy, and preferably there should be only one sales organization.

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What are the modules in SAP SD?

Following are the modules included in SAP Sales and Distribution: 

• Master data
• Basic functions
• Sales support 
• Sales
• Billing
• Transportation
• Shipping
• Foreign trade 

Explain Distribution channel, Sales area and division in the SAP SD module.

Distribution channel: It is the medium using which the products and services will be distributed to the end-users by the organizations.

Sales Area: It is an entity in an organization that is necessary for the processing of an order in a company. It includes Sales organization, division and distribution channel.

Division: It indicates a product or service line of the organization.

In the SAP SD organizational structure, every sales organization is allocated to the company code. Division and distribution channels are allocated to the Sales organization, and all these form a sales area. 

What is the Partner function in SAP Sales and distribution?

Partner functions enable us to identify what functions are to be done by the partner in the business process. Let us consider a case in which a partner customer performs all the custom functions. These functions are compulsory functions, so in the SD system, they have to be defined as the obligatory functions.  

Explain the methods that are used in the delivery schedule.

There are two kinds of methods in the delivery schedule. They are 

Forward scheduling: Here, we can calculate the earliest possible date according to the availability date of the material. 

Backward scheduling: This is related to the delivery date requested. 

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What is Sales support?

Sales support is an important component in the SAP Sales and Distribution module. It is also referred to as Computer-Aided Selling. This module enables the organization in creating new sales, track existing sales and performance and finally assist in enhancing the sales and marketing in an organization. The sales support module in SAP SD gives an option to create an email list of customers and send emails to the new leads directly. Sales support also stores the data related to the customer's sales and distribution, products, competitors, material, etc.

What are the Sales Document types available in SAP?

Following are the Sales Document types in SAP: 

• Debit memo request
• Credit memo request
• Returns
• Standard order, etc 
  In SAP SD, the configuration steps to define the sales document type: IMG menu path: SPRO -> IMG -> Sales and distribution -> sales -> sales document header -> define sales document type.

What are the various Customer account groups we can create in the SAP SD module?

Customer account groups that can be created in SAP SD are:

• One time customers
• Export customers
• Domestic customers 

) What is material management in SAP ERP?

Material management is an important module of SAP ERP that is associated with the other modules of the SAP R/3. Its main functions are to record and track daily business operations as well as the requirements of the inventory. All these modules of SAP are interconnected with one another. Price details and availability checks of a product are taken from the material management module. For sales orders, creating inbound and outbound delivery of goods, loading point, shipping details and so on are included in material management. 

) Explain the primary functions of Sales order processing?

The wholesale side of the organization is the main area to be concerned for the sales order. Its main functions are:

• verifying that purchased items are available.
• E-transferring the documents and printing them. 
• Verifying the insufficient data. 
• Verifying the sales transactions status updates. 
• Scheduling the delivery dates of the goods
• Calculating the price and taxes.

) What are the various sales activities that can be performed in SAP SD?

Sales activities in the SAP Sales and Distribution module are divided into pre-sales and post-sales activities. 

Pre-sales activities: The activities that take place before selling the product to the customers are called Pre-sales activities. Examples for Pre-sales activities are inquiry, quotation, etc.

Post-sales activities: The activities that take place after selling the product to the customers are called Post-sales activities. Examples of Post-sales activities are support, relationship management. 

) Explain Copy control in SAP SD.

In the SAP Sales and Distribution module, Copy controls are responsible for copying the data from the source document to the target document. It includes the program known as routing, which determines the way the data is transferred by the system. The end-users who don't want to repeat the control parameters from order, billing and delivery, can use Copy controls. 

Copy controls can be performed by:

• Sales document by the delivery
• Billing document by the sales document
• Sales document by the sales document
• Sales document by the billing document
• Delivery by the billing document. 

) Mention a few features that can be controlled by sales document type.

Some of the features that can be controlled by sales document type are: 

• Text
• output
• Taxes 
• Pricing
• Partner
• Delivery

) What do you mean by SAP posting period? What is the transactional code for opening and closing posting periods?

The purpose of the posting period in SAP is to ensure that the business sales Order posting period is matched to the financial posting date where financial accounting is prepared for closure and payment. S_alr_87003642 is the transactional code for opening and closing posting periods.

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) What is Proforma Invoice? What are its types?

The Proforma invoice serves as a reference document for importing and exporting negotiations. The standard proforma invoice document types are 

F5 - regarding the order

F8 - regarding the delivery.

) Explain when to use SAP return order and SAP Credit memo.

Generally, based on the Credit memo request, an SAP credit memo is created. It may be created when you need to pay the client. The return order is related to receiving the returned goods from the clients. Return orders are created by the sales department. According to the return delivery, the document will be created.

) What is invoice correction?

Invoice correction is a type of sales document. This is a documented process that introduces a new approach to dealing with complaints and issuing debit and credit memos. It enables the users to modify the quantity and price for any faulty items that are present on the invoice. The request for every invoice is made by the invoice. In every invoice correction request, there are two items. Quality and value is the first thing that is copied from the invoices. A debit item is another thing that gives the correct quality and value.

) What are the types of sales orders?

Various transactions in the SAP system indicate various sales document types. The business transactions are categorized into sales documents in different categories, which include the following:

• Inquiries and quotations
• Outline agreement
• Sales order
• Post-sale document 

) How does a sales activity differ from a sales document?

Sales activities in the SAP Sales and Distribution module are divided into pre-sales and post-sales activities. It includes the activities when you sell material instead of making your sales preparation with the customer. Example: Sales letter, sales calls, post-sales activities such as support and relationship, etc. 

Sales documents are regarded as sales when we sell the materials to the clients and are created within the SAP system to handle the sales process. Examples: quotations, sales orders, etc.

) What do you mean by pricing in SAP Sales and distribution?

Pricing in SAP Sales and distribution is used to determine the cost for external suppliers or clients. The condition is defined as a set of requirements while calculating the price.

) Explain the structure of the sales order in SAP SD.

Structure of Sales order: 

A customer inquiry may involve one or more items which include the service or material quality included in the order. Sales order quality is divided into the business lines, and it is made up of different subsets and delivery dates. The items in the sales order are clubbed in a hierarchy and enable to distinguish between the batches or for using the combinations of materials. Valid conditions of the items will be specified in the item condition. These conditions can be derived through a full condition for an item and may be valid for the complete sales order.

An item can be split into several billing plan deadlines, and every billing plan indicates the time while a fixed amount of items should be billed.

Creating a sales order - VA01 (t-code)

Editing a sales order - VA02 (t-code)

Displaying a Sales order - VA03 (t-code)

) What do you mean by inquiry in pre-sales activity?

An inquiry is an investigation, and it is not a legal document. It is used to record the delivery or service information of the clients. The information that is collected by an inquiry is connected with the materials and quality of goods. 

Menu path > logistics > Sales and Distribution > sales > inquiry > create

VA11 - T-code

) How do we create a quotation in SAP sales and distribution?

A quotation is a legal document to the clients about the delivery of products and services. Usually, this is given after the inquiry from the client. 

In SAP R/3 Menu,

Logistics > Sales and Distribution > Sales > Quotation > create

VA21 - t-code

Related Article: SAP SD Modules

) Mention the various schedule line categories according to various sales documents.

Inquiry: (Only for information purposes)

• No availability check
• No delivery of an item

Quotation: 

• No movement
• No delivery
  

Order:

• Movement type 601
• The schedule line is appropriate for the delivery.
  

Return:

• Movement type 651
• The schedule line is appropriate for the delivery.

) What are the factors that must be considered when we define various item categories?

The factors that must be considered when we define various item categories are:

• General data control elements
• Billing data control elements
• Shipping data control elements

) What do you mean by outline agreement?

) What do you mean by product proposals in SAP SD?

Coming up with a new product is always a great strategy to enhance the sales performance of an organization. The recommended products can be cheaper, costly or the same as the products that are demanded by the customer. Automatic Product Proposal is a powerful tool that is used by the system to market the products online. They have the ability to respond to their market needs. SAP CRM module is really useful because it comprises data for making such proposals.

) What do you mean by mapping an enterprise structure?

Enterprise structure is the structure of the business in real life. Various organizational units are defined by the requirements like company code location, client, distribution channel, etc.

) What is the difference between cash sales and rush orders?

Cash sale: In a cash sale, order delivery and billing will be performed on the same day.

Rush order: In a rush order, order delivery will be performed on the same day and billing will be performed later.

nclusion:

All the above are some of the most frequently asked SAP Sales and Distribution interview questions. Learning these questions will help you to know the type of questions asked in the interview. So, We wish you to Prepare well and hope you will succeed in your interview.