SAP Sales And Distribution Interview Iuestions

1)What is SAP SD? What are the primary functions of Sales and Distribution?

Ans)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
  • Consignment
  • Contract & Scheduling Agreements
  • Credit & Debit Memo requests
  • Rush Orders & Cash Sales
  • Back Orders.

2)What is the organizational structure in sales and distribution?

Ans) The organizational structure in sales and distribution is

  • Sales Organization
  • Distribution Channel
  • Division
  • Sales Office
  • Sales Group

3) Explain what is the difference between milestone and periodic billing?

Ans) • Periodic: Full amount in each bill till contract period
• Milestone: Partial amount in each bill till full amount is billed

4)Explain how shipping point is determined?

Ans)Shipping point is determined by,
Shipping Conditions + Loading Group + Delivery Plant = Shipping Point

5) Explain how you can assign distribution channel to Sales Organization?

Ans) TTo 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

6)Mention what are the Sales Document types in SAP? What is the configuration step to define sales document type in SAP SD?

Ans) 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

7) 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

8) Mention what is the Reversal PGI? Can you cancel the PGI and mention the transaction code for PGI?

Ans)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.

9) Explain what is the difference between SAP credit memo request and SAP Credit Memo?

Ans) 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).

10) 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.

11) Explain what is SAP Posting Period? What is the transaction code to open and close posting period?

Ans) AP 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

12)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.

13)Explain what is Proforma Invoice and what are the types of it?

Ans)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

14)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

15)Mention what are the two places where you need to configure CIN (Country Version India)?

Ans)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

16)Explain what is the difference between rush order and cash sales?

Ans)• 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

17) List out the five features you can control for the sale document type?

Ans)For sale document type the five features you can control is

  • Text
  • Partner
  • Pricing
  • Taxes
  • Output
  • Delivery

18)Mention what are the techniques available in delivery Scheduling?

Ans) 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

19) What Is The Further Subdivision Of A Plant?

Ans) The further subdivision of a plant are the storage locations, which allows stocks of materials to be broken down according to predefined criteria such as the location and materials planning aspects. It can also be subdivided into locations and operational areas. They are further subdivided into locations takes geographical criteria into account, operational areas reflects responsibilities for production is also a subdivision.

20)Is It Possible Sales Organization Sell From A Plant Belonging To A Different Company Code?

Ans) It is possible for a sales organization sell from a plant belonging to a different company code

21) Is It Possible To Assign Two Different Sales Organizations To The Same Company Code?

Ans) Yes, it is possible to assign two different sales organizations to the same company code

22)Define To Which Organizational Element Is Central In Shipping?

Ans) Organizational unit at a fixed location that carries out shipping activities is called Shipping Point. A shipping point could, for instance it can be a company's mail department or a plant's rail depot. Each delivery is processed by only one shipping point.

23) What Would Make The Immediate Delivery In Cash Sales?

Ans) When immediate delivery in cash sales is made the Order type delivery switch on immediately.

24) Is It Possible To Create Sales Order For 40 Items If The Quotation Is Sent For 30 Items?

Ans) Yes, it is possible to create sales order for 40 items if the quotation is sent for 30 items.

25).In Case Of Third Party Sales What Would Trigger For The Automatic Creation Of Pr Or Po?

Ans) It has to be set an item category as “automatic PO” so that PO and PR will automatically generate after saving the order.

26).Briefly Explain Any Three Organizational Elements Make Up A Sales Area And Their Function?

Ans) 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 is known as Division.

27).What Is The Relation Between Credit Control Area And Company Codes And Explain The Credit Control Area?

Ans)More than one credit control areas is not possible to assign to a company code, since a credit control area can include one or more company codes. Credit control area is an organizational unit in an organization that specifies and checks credit limits for customers.

28). What Is The Central Organization Element In Purchasing And The Relationship Between Sales Organization And Plants, Company Codes, Plants And Company Codes?

Ans)he Central Organizational element in purchasing is Purchasing Organization and the relationship between sales organizations and plants is Many to Many, to Company codes its Many to One and for Plants and Company codes its Many to Many to One.

29).Which Sub Module Of Sap Could Make Business Areas Obsolete And Can One Business Area Be Assigned To Several Company Codes? And What Is Z Transaction?

Ans) CO is the sub module of SAP that could make business area obsolete and it is possible that one business area can be assigned to several company codes. Z transaction is a copied standard transaction code or objects that rename it by Z which is basically standard name which will stat from Z as user defined.

31).What Is Cumulative Condition Record?

Ans) Cumulative Condition Record is a field that Condition Update during configuration for a condition type that has anything to do with the cumulative condition records.

30). How Can A Company's Structure Represent By Defining And Assigning Corporate Structure Elements In R/3 System And What Is The Purpose Of Doing That?

Ans) The Enterprise organization chart shows 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.

32). What Are The Views In A Material Master?

Ans)The views in a material master are Basic data, Additional basic data, Accounting views, MRP views, Purchasing views, Storage views, forecasting views, sales views and in IS Retail there is also a Listing view and POS view.

33).) Is business area at company code level?

Ans)No. Business area is at client level which means other company codes can also be posted to the same business area.

34).What Is A Sales Organization?

Ans)Sales organization is an organizational unit that sells, distributes products, negotiates terms of sales and is responsible for all the transactions involved with a sale.

35). What Is The Transaction Code For Creating A Material In Sap And What Is The Transaction Code To Extend A Material?

Ans)The transaction code for creating a material in SAP is MM41. MM01 is the transaction code to extend a material.

36). In A Material Master What Is The Base Unit?

Ans) The base unit is a measure which is used as a basis for all the transactions, all movements of quantities will be converted to that base unit of measure which is specific to an article

37).What Happens When A Value Is Not Entered For A Manual And Mandatory Condition Type And Does A Header Condition Type Have An Access Sequence?

Ans) When a value is not entered for a manual and mandatory condition type the pricing procedure will reject the conditions in the sales order. There would be no header condition type to have an access sequence.

38).. What Are The Examples Of Global Settings?

Ans) The examples of Global Settings are Currencies, Countries etc and this data is application independent

39). What Is A One Time Customer?

A general customer that is created for those customers for which it do not want to create separate records is called a one time customer. This customer can be reused.

40). Who Defines The Account Groups And Give Some Tables In Sap Sd For Customer Master?

Ans) Normally account groups are defined by the finance team and some of the tables in SAP SD for customer master are KNVV, RF02D, KNA1 etc.

41).What Is The Procedure To Know Whether The Customer Is One-time Or Regular?

Ans)The procedure to know the customer is one-time or regular since one can maintain Account Group for One-time customers

42).Give The Transaction Code For Creating A Customer In Sap Sd?

Ans)The transaction codes for creating a customer in SAP SD are VD01, VA01 and XD01

43).What Are Inter-company Customers?

Ans) This customer represents the sales customers within the same client but between different company codes.

44). What Happens When The Exclusive Field Was Ticked In The Access Sequence?

Ans)When the exclusive field of all access sequences is ticked, it will try to get available data from the first. Only in case, data is not available, will it move on to the next one.

45).What Is The Purpose Of Partner Determination?

Ans) Partner determination is used to find out who is responsible for A/R process and where the products are going.

46).Explain What Is A Distribution Chain ?

Ans) A distribution chain is the possible combination of sales organization and distribution channels.

47).Explain What Is Consignment Stock Process?

Ans) There can be business scenario where we allow our stock to be stored at the customer’s site. Or even if the stock or material is stored in our place, a particular amount is reserved for the customer. He may sell or redistribute this stock allocated for him at his wish. We bill him only the amount he has consumed. This business process is called ‘consignment stock process. The special stock(consignment) in our system both customer wise and material wise. The standard sales order document type used is KB and delivery type is LF.

48).How Do We Transfer Stocks Under One Company Code From Plant To Plant?

Ans)Plant to plant is handled using MB1B. If stock transfer orders with deliveries are configured, use ME27.

49).Plant to plant is handled using MB1B. If stock transfer orders with deliveries are configured, use ME27.

Ans)Take a look at function modules with SERIAL_*. For example, SERIAL_LS_PRINT.

50).Where In The Sale Order Would You Enter The Serial Numbers For Material?

Ans) Serial numbers are entered on the delivery document and not a sale order, as this allows for multiple serial numbers to be entered for a single line. For example, you may have 10 serial numbers for a quantity of 10.