Q.What Stands for SPRO?

 
Answer:  SPRO stands for SAP Project Reference Object SPRO is used to configure1 the
SAP System as per client’s requirement.   IMG (Implementation Management Guide)
menu which you will find customization settings for all SAP modules, will be shown
11111after executing SPRO transaction.
Q.What is Functional Specs?
Answer: Functional specification is a comprehensive document which describes the
desired functionality. It contains technical information and data. It describes the scope,
current functionality and desired functionality of a function/transaction

Q.What is me Variant Configuration? What are the type of questions we can expect
in that ?
Answer: Variant configuration is used where you have a configurable material like
computer (made up of components like processor, monitor, keyboard, mouse etc).
These components are called as characteristics in variant config. Again this will be
having values like processor can be either P4 or P3, monitor can be 15" or 17" etc. Based
on the values selected the variant pricing will happen using the condition type VA00.

Q.SAP SD Customer Groups Sales Distribution Module OVS9?

Answer: SAP's Sales and Distribution module is quite comprehensive and contains

various features for analysis. One such feature within SAP SD is the creation of Customer
Groups. Simply speaking, customer groups are part of the customer master data in SAP
IMG. Customers are assigned to a particular customer group by assigning a two digit
alphanumeric key. Such customer group key needs to be assigned to each and every
customer master records. The main benefit of customer groups is that it can be used in
generating statistics and creating condition records such as records for pricing. One
example which I can give is suppose you create two sets of customer groups, say
Customer group A1 for domestic sales and Customer group A2 for international sales.
You can choose to give discount to customer group A1 which are customers in the
domestic market by creating a pricing condition for group A1. Customer groups can be
created in SAP SD user the following menu path: IMG >> Sales & Distribution >>
Master Data >> Business Partners >> Customers >> Sales >> Define Customer Groups
Alternatively, one can use the transaction code OVS9. One needs to simply define a two
digit alphanumeric customer group key. Once defined, the same can be assigned to a
customer master record using the transaction code VD02. Such custoomer master key
can be made mandatory for all customer master records

.Q.Tel about the Order to Cash Cycle ?

Answer: A customer orders some items from your company by creating a sales order
(Tcodes: VA01, VA02, VA03, Tables: VBAK, VBAP etc). Your company decides to deliver
the items ordered by the customer. This is recorded by creating a outbound delivery
document (TCodes:VL01N, VL02N, VL03N, Tables: LIKP, LIPS etc). Once the items are
available for sending to the customer, you post goods issue which reduces your
inventory and puts the delivery in transit. This will create a material document. You will
post goods issue using VL02N but the material document created will be stored in
tables MKPF, MSEG. You will then create shipment document to actually ship the items.
(Tcodes: VT01N, VT02N, VT03N, Tables: VTTK, VTTP etc). You finally create a sales billing
document. (TCodes: VF01, VF02, VF03, Tables: VBRK, VBRP etc). This will have a
corresponding accounting document created that will be in BKPF, BSEG tables. When
customer pays to your invoice, it will directly hit your Account Receivables account in FI.
You will have to remember that these are not a required sequence. Some times, you
may configure your system to create a SD invoice as soon as you create a sales order or
you may not create a shipping document at all. This is the position where Functional
Consultant would come into picture and study the company's order to cash process and
configure the SAP system to do so.

Q.Explain how we will configure milestone billing , periodic billing and which
scenario we will use? 

Answer: Menu path: IMG->sales & distribution->Billing->billing plans->define billing

plan types. You set the start date and end dates if applicable to the type of billing you
are using. What time to be billed (end of month, start of month etc..) Milestone is a
billing plan type where a customer is billed for the amount distributed between the
dates until total value is reached eg: if the total billing amount is 1000 USD for a year.
You will bill the customer in different amounts say 200, 500, 300 at different intervals as
per customer agreement. On the other hand Periodic billing is billing the customer for
the total amount(here 1000 USD) at regular intervals periodically until the customer
agreement is reached. eg: 1000/12 for a 1 year agreement and say billed at the 1st day
of every month 

Explanation for Billing Plan for Milestone Billing Milestone billing means distributing
the total amount to be billed over multiple billing dates in the billing plan. As each
milestone is successfully reached, the customer is billed either a percentage of the entire
project cost or simply a pre-defined amount. During sales order processing, the system
determines from the item category whether a billing plan is required and, if so, which
type of plan ,The type of billing plan that is determined at this point is set up in
Customizing and cannot be changed in the sales document. Billing plans for periodic
billing and milestone billing plans for project-related milestone billing have different
overview screens so that you can enter data relevant to your processing. 

Q.why to Search for a transaction code ? 

Answer: If you're not sure what a transaction code is, or you know the transaction code
but can't find it in the menu, use this transaction: Type in the transaction code, or part of
the name e.g. sales order. Any transaction name with that text in it will be shown, along
with the menu path

Q.How many clients we will create in land scape (like in development server,
quality server, production server ) if we are creating more than one in each server
what is exact use of that client ?

Answer: Client landscape : Basic layout : dev -testing- production also - Sandbox

server . for trial and error - Development server for actually creating transports(CTS) -
Global server. If you have global implementations at different client locations (eg;
canada, US, UK) (for testing purposes with actual master data as well) - Testing server.
(for regression testing purposes before moving to prodcution, integration etc..) -
Production server is the actual production system The clients could be variable and
could be created to a specific server . usually a developed. where abap, functional would
mess around. say : client 100-functinal consultants ,client 300- abapers ,client 400- other
users(like super etc)

Q.What is the Definition of Transaction?

Answer: A transaction in SAP is like a program in normal computer languages, and is

identified by a four-character transaction code. A transaction can be initiated directly
from the command field on the presentation interface or from the corresponding menu
option. There are two kinds of transactions: report and dialog transactions. Report
transactions are SAP programs that collect selection parameters from the selection
screen followed by the output called the lists. Dialog programs consist of more than one
interactive screen called a dynpro. These transactions sometimes also need pre selected
information for triggering them, not unlike the explicit selection screens in report
programs; these are called parameter transactions.
Q.What are the responsibilities of "CORE TEAM" and "FUNCTIONAL TEAM" in an
implementation?

Answer: Core Team are the power users who are selected for the SAP implementation.
The Functional Team gather the initial implementation requirement from these core
team users who will be the bridge between the SAP Functional Team and their
department users with the expert work knowledge.

Q.whether it is possible to have a Customized of Transaction code or self defined

transaction code in SAP?

Answer: One of the most asked question in a SAP interview is whether it is possible to

have a self defined transaction code in SAP. The answer to the question is simple and if
given tactfully can impress the interviewers. To start with, yes, self-defined reports,
transactions or functions are possible within SAP. There might be numerous reasons
why a company might go in for customized transaction codes or for that matter
reports. To cater to this demand, SAP allows creation of user-defined transaction codes.
Creating a transaction code allows the user to speed up access to specific
reports/programs as the user no longer needs to use transaction code . Thus, instead of
using T-Code SA38, then entering the program name or report name and pressing
execute, the same can be done directly through a pre-defined T-Code. The user can
then simply use a transaction code, which will automatically open the program. In SAP
customized T-codes can be created through transaction code .

Q.How to Find the Frequently used SAP Transaction code?

Answer: If you are the kind of person who stores his frequently used SAP transactions in
his memory instead of his favorites folder, you might from time to time run out of
memory and experience some difficulties to remember a specific transaction code. On
the other hand, if you work with the SAP menu and spare a bit your memory, you might
also have some problems from time to time to find your way back in the SAP menu to a
specific transaction. Here are 2 tips to find back your transactions. The first one is more
targeted towards specialists as you might need advanced authorizations to run it while
the second one is more generic and standard. Using table TSTCT Executing transaction
SE16 on table TSTCT and selecting as language field (SPRSL) ‘EN’ for English, you may
try and find transaction codes based on their texts. Note that you may use ‘*’ generic
characters in the text search and that the search IS case-sensitive. Using transaction
SEARCH_SAP_MENU As its name indicates, transactions SEARCH_SAP_MENU searches
the SAP menu for a transaction code or text you specify and outputs the directory path
to the transactions. Note that not only transactions are matched against the search text
but also transactions directories themselves (they are easily recognized because they
have no associated transaction code in the resulting list). Another big advantage of this
method is that the search IS NOT case-sensitive

Q.what is the method of time saving Transactions ?

Answer: System transaction codes can be entered in the command field to go directly

to a transaction or a function. The following conventions are important time-saving tips
for using transaction codes /n – cancels the current transaction /nxxxx – initiates the
specified transaction directly from an another transaction /o – displays an overview of
sessions /oxxxx – initiates the specified transaction in a new session /nend – ends the
logon session with a confirmation pop-up window /nex – ends the logon session
without a confirmation pop-up window /i – deletes the current session

Q.What are posting Keys and How are they used while making postings?

Answer: Posting Keys are defined at Client Level. Posting keys determine whether a line
item is a debit or credit as well as the possible field status for the transaction. In this
context, it is essential to understand the factors that determine the field status of a
transaction. The field status within a FI document is controlled by Accout Type, field
status of Posting Key and the field status of the G/L account. Modifying the SAP
delivered Posting keys are not recommended. if a posting key is to be modified the best
possible action is to copy the posting key that needs to be modified and then modify
the copy. we can define the posting keys using the transaction OB41. It also determines
the account type to which the debit or credit is to be made and whether it is Spl G/L
transaction. If it is a Spl G/L transaction, then the field for Spl G/L indicator becomes
required entry.

Q.what is the method of Automatic Account Assignment in SD ?

Answer: During goods issue in the sales cycle, the system is usually configured to
update the relevant GL accounts automatically and to create the relevant accounting
documents. This customization in IMG is also called material account assignment and
is achieved through a number of steps as detailed below: Determine ‘valuation level’
(Company Code or plant). Activate ‘valuation grouping code’ and link it with the ‘chart
of accounts’ for each ‘valuation area.’ Link ‘valuation class’ with ‘material type’ (FERT,
HAWA, HALB, etc.) with the ‘account category reference’ (combination of valuation
classes). Maintain ‘account modification codes’ for ‘movement types.’ Link ‘account
modification codes’ with ‘process keys’ (transaction/event keys). Maintain a GL account
for a given combination of ‘chart of accounts’+ ‘valuation grouping code ‘+’ account
modification code ‘+’ valuation classes.’ The process of Automatic Account
Determination is as follows: Depending on the ‘plant’ entered during goods issue (GI),
the ‘Company Code’ is determined by the system which in turn determines the relevant
‘Chart of Accounts.’ The plant thus entered in goods issue determines the ‘valuation
class’ and then the ‘valuation grouping code.’ The ‘valuation class’ is determined from
the ‘material master.’ Since the ‘account modification code’ is assigned to a ‘process key’
which is already linked to a ‘movement type,’ the ‘transaction key’ (DIF, GBB, AUM, BSX,
etc.) determines the ‘GL account’ as posting transactions are predefined for each
‘movement type’ in ‘inventory management

Q.What are the Movement types in MM ?

Answer: In SAP Materials Management, goods movement is distinguished using a three

digit key which is called the “movement type”. The movement type is important because
it controls the screen layout, adjustment of inventories, the GL account for financial
purposes etc. Goods movement have been discussed elaborately here. The various types
of material movement types in SAP materials management MM are given
below: Movement Type and Goods Movement 101 Goods receiving for ordering 104
Goods receiving blocking status for ordering 122 Return delivery to suppliers 201 Goods
outflow (WA) to cost centers 221 Goods outflow to project 231 Goods outflow to
customer order 241 Goods outflow to factory 251 Goods outflow to sales 261 Goods
outflow to order 291 Goods outflow for all account allocations 321 Release from quality
checking 551 Goods outflow for scrap 321 Release from quality checking 451 Returns
from customers 453 Inventory to inventory transfers 501 Goods receiving without order
511 No cost delivery 521 Internal goods receiving without manufacturing order 561
Inventory taking

Q.what are Types of Stock ?

Answer: Used in the determination of available stock of a material, the Stock Type is the
sub-division of inventory at a storage location based on the use of that inventory. In
SAP, there are many kinds of stock types: Valuated Stocks are the stocks which belongs
to your company. There are three types of valuated stocks Unrestricted Stock is the
physical stock that is always available at a plant/storage location Quality
Inspection  Stock is not counted for unrestricted use and may be made available for
MRP. To give an example, you want to do inspection on arrival, you shift your stock to
Quality inspection stock then you do the quality inspection Blocked stock is not
counted as unrestricted stock and is not available for MRP. Non Valuated stock is the
stock which you will keep in your premised and this is not valuated in your
company The GR-blocked stock denotes all the stock accepted ‘conditionally’ from the
vendors. This stock is not considered available for ‘unrestricted use.’ You will use the
Movement Type 103 for the GR-blocked stock and Movement Type 101 is used for a
normal GR. Special stock is the stock managed separately that does not belong to
company or that are stored at particular location

Q.Explain & How is Stock Transfer between Plants happens?

Answer: 1- Step Transfer This process describes to transfer the material stock between
plants 1-step. This type of stock transfer can only be carried out in Inventory
Management. Neither Shipping in the issuing plant nor purchasing in the receiving plant
is involved in the process. Transferring stock in one step has the following
characteristics: – The stock transfer is entered as a transfer posting in Inventory
Management. Creating a reservation can plan the transfer posting. The quantity of the
stock transferred is posted immediately from the unrestricted-use stock of the issuing
plant to the unrestricted-use stock of the receiving plant The transfer posting is valuated
at the valuation price of the material in the issuing plant. If the plants involved belong to
different company codes, the transfer between plants is also a transfer between
company codes. In this case, the system creates two accounting documents for the
transfer posting. The stock posting is offset against a company code clearing account. 2-
Step Transfer This process describes to transfer the material stock between plants in 2-
step. This type of stock transfer can only be carried out in Inventory Management. If you
post a stock transfer from plant to plant using the two-step procedure, you post the
removal from storage at the issuing plant first. After you post the removal from storage,
the quantity being transferred is managed in stock in transfer at the receiving plant. It is
not yet part of unrestricted-use stock, however. You post the placement into storage at
the receiving plant in a second step. Only then are the event completed and the
transferred quantity part of unrestricted-use stock. Possible reasons for carrying out the
a stock transfer in two steps may be: The plants are located at quite a distance from
each other and the goods are in transit for a prolonged period of time; or there is one
employee responsible at each plant, and each can only post movements for his/her own
plant.

Q.Explain what is Physical Inventory?

Answer: Main Business Scenario: Your enterprise has to carry out a physical inventory of

its warehouse stocks at least once per fiscal year to balance its inventory. Various
procedures can be implemented for this. In a periodic inventory, all the enterprise’s
stocks are physically counted on the balance sheet key date. Every material has to be
counted. During counting, the entire warehouse must be blocked for material
movements. In the continuous inventory procedure, stocks are counted continuously
throughout the entire fiscal year. In this case, it is important to ensure that every
material is physically counted at least once during the fiscal year. You can also
implement special procedures, such as cycle counting (physical inventory at regular
intervals) and inventory sampling (physical inventory of randomly selected
stocks). Physical Inventory types: Periodic; Sampling; Continuous; Cycle
Counting With both continuous and periodic inventory types, the following stock types
can be included in the physical inventory: -Unrestricted use stocks in warehouse -Quality
inspection stocks -Blocked stock The cycle counting inventory method creates a physical
inventory document only for stock type 1 (unrestricted use). The inventory sampling
procedure is only applicable to stock types 1 (unrestricted use) and 2 (quality inspection
stocks). The Physical Inventory Process: Create physical inventory document->Set
blocking indicator->Print physical inventory document->Enter count results->List of
differences->Post differences Physical Inventory Number: The physical inventory
number was created as an additional hierarchy above the physical inventory document
number. You can use it to group together different physical inventory documents that
belong together organizationally. You assign physical inventory numbers when you
create and change physical inventory documents, and you can use them as an extra
selection criterion for physical inventory reports. This enables you to directly display the
physical inventory documents per storage location, customer, or vendor. If you have not
finished entering the complete physical inventory count, you can freeze the book
inventory balance in the physical inventory document to prevent goods movements
from changing the book inventory balance relevant to the physical inventory count,
which would result in incorrect inventory differences. You define in Customizing for
Inventory Management whether you can freeze book inventory balances in the storage
location. When entering a physical inventory count with reference to a physical
inventory document that contains many items with a quantity of zero, you can set zero
count automatically for all items that have not yet been counted. In Customizing for
Inventory Management, you can define the following value tolerances for posting
inventory differences for a user group: maximum amount per physical inventory
document maximum amount per document item Relevant tables: IKPF: Header: Physical
Inventory Document ISEG: Physical Inventory Document Items

Q.What is the function of counter in pricing procedure ? Please explain with an

example ?

Answer: Counter is used to show a second mini-step within an actual step. For example,
you may have all your freight charges assigned to step 100, however there may be three
condition types, each representing a different freight charge. Thus you can assign a
freight condition type to step 100 counter 1, another to step 100 counter 2; another to
step 100 counter 3; and so on
Q.What is the use of VPRS, EK01 and Ek02? For material cost we are using VPRS
why we need EK01 and EK02 ?

 Answer: VPRS is the internal price condition which is copies from material master and
can not be manual procss.It is mainly used to calculate revenue sv from particular
material. EK01 is for actual costing EK02 is for calculates costing for costing purpose.

Q.What is the purpose of the request number which is generated when u save a
customization?

Answer: Request # will be of format SysIdKxxxxxx, where sys id is your

DEV(development), QAS (Quality) or PRO (Production) clients, letter K followed by a 6
digit number. Each rask in IMG is attached with a Req #. When we need to transport the
requests from 1 client to another Eg: DEV to QAS, we 1st need to release lower level
requests followed by higher level requests using SE09 / SE10. Only then we will sbe able
to transport them which Basis guy does

Q.What is the advantage of using the text as a reference instead of duplicating it

?Answer: In general: Referencing avoids data entry errors and allows a standard
message relayed. And To reduce load on the system referencing is considered better
than copying.

Q.where is Integration happened between the SD and FI-CO ?

Answer: A key feature of an enterprise data system such as SAP is integration of

function where events occuring in the system cause accounting entries to be made
automatically when the events happen. This means that there is no lag between events
and the books. To facilitate this process SAP uses this basic method: The account key
determines the type of price and discount calculation made The type of sales revenue
posting to feed data into profitability analysis The customer master record is the source
for data The material master record is the source for data on what was shipped from
inventory

Q.What are the condition conversion and customer/material conversion in the

Organization structure, how do you navigate? Please answer with example?

Answer:  In the Organization Structure if you have more than one distribution channel
and division then you have to go for common Dist. Channel t/c VOR1 and similar for
division VOR2 or SPRO>Sale and Distribution>Master A) DCDC and DCD
Q.In consignment fill up we delivery goods to customer site, is there any
agreement with customer? if yes what type of agreement(relating price)?if no with
out agreement how can we place rupees lacks of amount to customer site?

Answer: Yes, there is always an agreement that the customer will sell or consume the
materials. Billing is done only when the customer actually sells or consumes the
materials. The unsold goods or unused materials are our materials and the customer can
return them (if he wants). Materials may be kept at either customer's site or our site.
Ownership of material passes only in case of : 1) Consignment Issue : from us to
customer i.e. when the customer actually sells or consumes the material. 2)
Consignment Return : from customer back to us. It does not pass in case of : Fill-up or
Pick-up.

Q.When will you combine deliveries into one invoice?

Answer: 1 we will combine multiple deliveries into one invoice, when the bill to party ,
payment terms and billing date is same. And also when billing date, that means billing is
done only once in a month for that particular customer, then you combine all deliveries
of that month create invoice 2 In one scenario it depends up on the customer master
data in the following way if that specific customers have multiple ship to parties as
mentioned in partner functions of the master data of the customer and for all these ship
to parties there will be unique bill to party or payer this takes place. If the confirm
delivery date of materials to different ship to parties must be unique. 3)In another
scenario it depends up on the availability check in the following as it depends up the
checking group if the system finds collective requirement in the checking group of this
material master record of the specified material it combines all the deliveries and
transfers to the billing document as one invoice.

Q.How to stop PGI?

Answer: We Can't stop PGI (Post Goods Issue ), if u want to reversal u can use VL09 and
then cancelled delivery to use transaction VLO2N.

Q.Tell me a few tickets handled by you during your support?

Answer: Material Discount was not included in Pricing Procedure.

3. Tax was not configured in Pricing.

4. Material was required to be substituted by some other material during
unavailability.
5. It was required to assign new Partner to Customer.
 6. It was required to make some fields in Material Master as required entry

A2. first of of all tickets are the requirement which comes from client side or by the end
users .the ticket which i faced was client wants to give discount if customers pay within
given period of time say 20days he will get 10% discount and 5% 10days before 20days
and 2% 5 days before 10days.My problem is that i am unable to insert 2%discount in
terms of payment how to solve it. 2nd Ticket was client wants transportation zone in
pricing which not maintained in field catalog, 3rd Ticket was client wants vprs should be
his selling price i.e pr00 should not be maintained.

Q.User-specific parameters means? How to create that one?

Answer: These parameters are specific to the logon user id. you can access this by
going to pull down main menu--System- User Profile--> Own data--> in that the 3rd
Tab page. A 2> These are module specific parameters which serve different purposes.
Ex-EFB parameter for MM Purchase order-Prices display

Q.Explain to me in detail Alternate condition base value, and alternate calculation

type?

Answer: ALTERNATE CALCULATION TYPE : This function allows you use a formula as an

alternative in finding the value of the condition type, instead of standard condition
technique. this can be used to calculate complex tax structures. ALTERNATE CONDITION
BASE VALUE : The alternative condition base value is a formula assigned to a condition
type in order to promote an alternative base value for the calculation of a value

.Q.what r all the documents will generate after saving invoice?

Answer: After saving invoice 5 documents are generated:

1. Revenue Account
2. Customer Receivables Account
3. profit center Account.
4. Special Purchase Ledger Account
5. Profit Analysis Account.

Q.What is Business Process Reengineering ? Explain it ? Answer: BPR means the

existing business process how you re-engineered to get client requirements. (Line items
clearing at the time of customer receipts which is not exists in the legacy)

Q.What are the two user exits you have used in your project?
Answer: Examples of user exits : MV50AFZZ i used it to carry out availability check for
batch managed materials

Q.In sales order how system does picks up plant?

Answer:  first system looks in the following way : 1) Customer material Info Record 2)

Customer master record 3) Material Master Record

Q.How is shipping point determined?Answer: shipping point will be determined

based on the shipping conditions, loading group and delivery plant.

Q.Where do you assign Movement Type?

Answer: we assign movement type in schedule line category. As is is related to transfer.

Q.What is out put of Blue print ?

Answer: Blue print means collecting the business requirements and mapping these with
in sap R/3 if propose is not met then some other solution how to map in SAP R/3 i.e  AS
IS – TO BE study so the out put will be under standing the requirements and providing
the solution in sap with flow charts and get the acceptance from the business team
before configure the system i.e realization stage

Q.Who are called Super users when it comes to training in SAP ?

Answer: There are Consultants, Power users, End users in a SAP R/3 system. The users
are differentiated by the level of authorization End users-- Normaly are given
authorisation to only specific transactions ( T.codes)-- like creation of Sale order,
Delivery, transfer order etc etc.. For eg a person in the ware house would only be given
authorization to create, Transfer orders and not to create Sale orders. Similarly a sales
person will have the authorization to create SOs and not TOs. Power Users-- People
who have additional authorizations to change or add data to make the system adapt to
day to day business requirements are power users. Master record creation, Condition
record creation. These people sometimes are also allowed to view the customization
screens and normally not allowed to make any changes in the
customization. Consultants-- These people (We) mainly work in customization. their
authorization level depends on the Server they work on. For eg: In development server
to all screens In testing server except few critical customization screen to all screens In
production server – To get any screen in production to end user, here user role can be
changed by the help of basis to work in production server in case of emergency like
they would like to find the root cause of the error which happens only in production
server and not in any other server.

Q.How to handle returnable packing material? what is the process involved in it?:

 Answer: Returnable packaging consists of materials that are stored at the customer

location but which remain the property of your company. The customer is only required
to pay you for the returnable packaging if he does not return it to you by a specified
time. Ex: Coke Bottles, retailers have to return them to the factory. Item Category Group
LEIH. and Treated as Special Stock. Pick up and issue will be available like consignment.

Q.In order to make up a Sales Area which Organizational Elements will help?

Answer: In Order to make Sales Area following Organizational elements Are required. 1
Sales Organization. 2 Distribution Channel. 3 Division.

Q.What is the difference between condition type EK01 and EK02?Answer: EK01 IS A

CALCLATED COST EK02 IS A ESTIMATED COST

Q.If we don’t give the horizon period in dynamic credit check what will
happen? Answer: 1. IT WILL work as STATIC OR SIMPLE CREDIT CHECK

2. AS YOU ARE NOT MAINTAINING THE CREDIT HORIZON FOR CHECKING

PURPOSE SYSTEM WILL CONSIDER TODAY'S DATE AS DEFAULT.

Q.Customer hierarchies use?

Answer: customer hierarchies are use to show the tree structure of the customer in the
company. it is used to give the discount based on the hierarchy. for rebate processing
the customer hierarchies are used to give the exact discount.

Q.What do you mean by POD(proof of delivery) what is the use of pod? What are
the con figuration you done in your project?

Answer: Proof of delivery is the confirmation, sent by the customer upon goods receipt.
Company will raise the billing document based on that confirmation. They normally use
an intermediate document with application link enabling. On the whole, It is done by an
abapers.

Q.What is BADI’s and Explain it ?

Answer: Badis stands for Business Add Ings. and it is for enhancements in the
application area. main use of it is Reusability, BADI’s are oops based. BADI’s can be used
any number of times in a project.

Q.Can we have different pricing procedure for sales order and invoice?

Answer:  1. yes , you can do it by assigning different doc pricing procedure for sales
doc. eg. you can assign different Doc pricing procedure for OR, F2, accordingly different
pricing procedure will be determined for both document. ( you will have to assign this
DocPP in pricing procedure determination) 2. Yes it is possible to have a PricProc in
Billing different from that of SO. Since the PricProc determination takes place at invoice
level also. Generally, the Sales area & CPP (Cust pricing Proc) indicator won't change,
however the DPP (Document Pricing Procedure) can be different for the billing type than
that of sales order type. enhance a different Pricing proc can be determined. However,
in practice, people may not be doing this.

Q.Different between inquiry and quotation?

Answer:  1, Inquiry is just a simple document showing some interest shown by the

prospective customer on products and services offered by the company. Date and Price
nothing is relevant here. BUT quotation is a legal agreement which is given/offered to
the Customer. The company will agree to the customer, that company will charge a
particular amount to a particular quantity of a particular product and this agreement is
time limited and not valid after that time duration. 2.Quotation is legally binding offer
from sales organization to a customer for providing goods and services under certain
fixed conditions Quotation id valid for limited period only

Q.What is the use of column CONDITION TYPE in Pricing procedure determination.

Like sales area + customer. pp+ Doc. pp+ Pricing procedure+ CONDITION TYPE,
without maintain condition type system get pricing procedure in sales order then
what is the use of this column ?

Answer: To be more clear, the condition type entered along with the pricing procedure
determination would become a column in the line item of the sale order. so instead of
going into the item data conditions screen and entering the value , you can straight
away enter it in the line item

Q.What is transfer order?

Answer: An instruction to move materials from a source storage bin to a destination

storage bin in a warehouse complex at a specified time. A transfer order consists of
items that contain the quantity of the material to move and specifies the source and
destination storage bins. A transfer order can be created based on a customer delivery,
a transfer requirement, or a posting change notice. Source and destination storage bins
can be in different warehouses. Application: This is the term of Warehouse Management
(LE-WM) and linked into SD Module, where clients business run through Warehouse
Related Transaction: VL01N LT03 LT09 VL02N

Q.What are the fields in pricing procedure?

Answer: There are 16 columns in pricing procedure 1. Step 2. Counter 3. Condition type

4. Description 5. From 6. To 7. Manual 8. Mandatory 9. Statistical 10.Print 11.Subtotal
12.Print 13.Alternative calculation type 14.Altenate condition base value 15.Account key
16.Accruals

Q.What are the Standard output types in SD?

Answer: Standard Output Types in SD are as under: 1. Sales Order Confirmation: BA00

2. Outbound Delivery Note: LD00 3. Billing Document: RD00 5. Cash Sales: RD03 6.
Inquiry: AF00 7. Quotation: AN00 8. Contract: KO00 9. Picking List: EK00

Q.What is Condition type?

Answer: A condition type is one which describes that what is the purpose of that
condition i.e. it represents a real time pricing like price, discount, freight or taxes
condition types are used to define how the particular condition is going to perform.
Condition types are linked to access sequence which in turn is linked to condition tables.
Condition types are used wherever we use condition technique. Hence it is used in
pricing, material determination, output control, etc.Some important condition types in
pricing are pr00-pricing, kfoo-freight, k007-customer discount..

.Q.What is difference between delivery document & scheduling?

Answer: Delivery doc is the actual delivery that we create in VL01N for the sales order.
Delivery scheduling is the process by which system proposes the confirmed delivery
date when a sales order is loaded. For eg consider that the customer has placed an
order on 8th Sep & requested delivery RDD on 12th. Consider that you have maintained
2 days as transit time, 1 day as loading time & 1 day as pick pack time. Then the system
initially carries backward scheduling from the RDD. So from 12th, it will calculate
backwards. So your goods should leave your shipping point by 10th, loading should
start by 9th, pick pack should start on 8th. System will see is material is available on 8th.
If yes, then it will confirm the requested delivery date RDD. If not, system will check for
the material availability date MAD. If MAD is on 10th, then system will do forward
scheduling from 10th. So items can be picked by 11th, loading done on 12th & goods
will reach customer on 14th (2 days transit). So confirmed delivery date is 14th. System
will propose this date as delivery date in shipping view of sales order main screen. This
process is called delivery scheduling.

Q.What is Extract used in condition tech. in pricing? 

Answer:  condition tech is the main backbone of pricing without condition there is no
pricing Condition tables + access sequence + condition type + Pricing procedure =
Condition technique

Q.What is the difference between plant and storage location?

Answer: - plant is place where Production/assembling of material is done as per PP-

module, place where Storage/purchasing of material done as per MM-module and for
sales plant is place where sales and service is provided. - Storage Location is a place
allotted inside a plant for the purpose to maintain the stock. The same considered for all
modules (PP, SD, & MM)

Q.What is the purpose of sales document type?

Answer: Sales documents is nothing but data container, and its a proof of transactions
to simplify business process document categorized into 3 types :sales document,
delivery document , billing document sales document :sales related data is going to be
captured here to map different process transactions sap has categorized into 4 types.
Presales order: inquiry, quotation (IN, QT) Standard order: OR, cash rush Customer
outline agreement: Scheduling agreement-DS & contracts Customer complaints: credit,
debit (G2, L2) The functions of sales document type are: It can determine whether the
sales doc of that type is blocked or not, No. ranges for the documents, whether a
reference doc is mandatory or not, whether it should read cus.material info record,
whether the system should run credit checks and how it should respond etc.. A sales
document type fulfills a requirement of a specific business transaction.. for example in a
cash sale you would require the delivery to be happening immediately after the order
and you would require a invoice slip to be handed over to the customer immediately
after his purchase. These things are customized in your Cash sales(CS) document
type.. SAP SD Interview Questions                 SAP SD Interview Questions and Answers

Q.What is an integration point between SD AND MM?

Answer: Link Between SAP SD, MM & FI The link between SD and MM :- 1. When you
create sales order in SD, all the details of the items are copied from Material master of
MM. 2. MRP and availability check related data is also taken from MM although you
control this data in SD also. 3. While you create inbound/outbound delivery with
reference to a sales order, the shipping point determination takes place with the help of
the loading group, plant data, shipping conditions etc. This also refers to Material
Master. 4. The material which you are entering in a sales order must be extended to the
sales area of your sales order/customer otherwise you cannot transact with this material.
There are many such links between SD and MM. Now the link between SD and FI :- 1.
Whenever you create a delivery with reference to a sales order, goods movement takes
place in the background. eg.In case of standard sales order, you create an outbound
goods delivery to the customer. Here movement 601 takes place. This movement is
configured in MM. Also, this movement hits some G/L account in FI. Every such
movement of goods hits some G/L account. 2. The accounts posting in FI is done with
reference to the billing documents (invoice, debit note, credit note etc) created in SD.
Thus this is a link between SD and FI 3. Tax determination: In case of a tax determination
also, there is a direct link between SD and MM . SD Integration points with other
modules SD module is highly integrated with the other modules in SAP. Sales Order
Integration Points Module Availability Check - MM Credit Check - FI Costing - CO/ MM
Tax Determination - FI Transfer of Requirements - PP/ MM Delivery & Goods Issue
Integration Points Module Availability Check - MM Credit Check - FI Reduces stock -
MM Reduces Inventory $ - FI/ CO Requirement Eliminated - PP/ MM Billing - Integration
Points Module Debit A/R - FI/ CO Credit Revenue - FI/ CO Updates G/L - FI/ CO (Tax,
discounts, surcharges, etc.) Milestone Billing – PS Return Delivery & Credit Memo -
Integration Points Module Increases Inventory - MM Updates G/ L - FI Credit Memo - FI
Adjustment to A/R - FI Reduces Revenue – FI

Q. What are MRP types?

Answer: Material Requirement Planning is concept of planning for the demand, whether

we need the material - to be planned internally - to be procured externally - to be
planned in external system (ex. APO - No planning - time based planning

Q.What is use of customer group?

Answer: Customer group is used for generating statistics and also used to give group
pricing, and discounts etc...

Q.What is the difference between incomplete order and backorder processing?

Answer: Incomplete orders are the orders which have not maintained Completely as to
full fill the business requirement to place the order ( as defined in incompletion proc by
business). The backorder is the order in which has not confirmed in Full or not
confirmed at a requested delivery date. (Certain delivery date)

Q.Why does the customer master have different views?

Answer: The main purpose of the customer views is for each dept to determine the
roles effectively in customer GENERAL DATA- deals with all the details regarding the
customer COMPANY CODE DATA- deals with financial aspects. SALES AREA DATA- deals
with sales; billing; shipping details along with the partner determination

Q.What is t-code for listing the blocked documents?

Answer: VKM1 is for blocked document, VKM2 Released Doc.

Q.What is batch split?

Answer: If a material is managed in batches then you can carry out a batch split for
every component. This means that if you Split a batch, you assign more than one batch
to one Component. In this case, each batch is displayed as a Separate component in the
component overview. Batch splits can only be triggered manually in the Production
order. The following requirements must be met for batch splitting: (1)The material
master record of the material must specify That the material is managed in batches.
(2)Batches must exist for the material

.Q.What is difference between SD account key and FI account key?

Answer: Account key is created and provided by FI. Account key determines the G/L
account to which the amount is to be posted. SD defines account key in pricing and FI
uses it for posting taxes. To the maximum both are one and same to find the right G/L
account through condition technique .SD Account key will be from Pricing procedure
and the FI Account key is from the tax procedure. as far as my knowledge is concerned
both the Key purpose is same. Acct keys are defined in FI only, SD people only use them,
say in pricing. But ultimately they r used for posting the amounts to relevant GL
accounts only

Q.How is credit control determined?

Answer: Credit control is determined in the combination COMPANY CODE +

CUSTOMER RISK CATEGORY + CREDIT GROUP = CREDIT CONTROL AREA One Company
code can be assigned too many credit control areas And multiple company codes are
not assigned to one credit Control area.

Q.What are the parameters in FD32?

Answer: FD32 Maintains credit management records here we can give the amount of
the customer WHAT IS HIS credit limit. U can see address of the customer, Central data,
status and payment history of the customer

.Q.What is the difference between routine and requirements?

Answer: Requirements are used in different area of SD, for example requirement in

pricing procedure, it restrict the access of the condition type. for example the rebate
condition type bo01 has the requirement 24 it means that this condition type should
appear in the billing document. Routine means the program written for the
requirement.ie the logic written in the ABAP code.

Q.What is condition supplement and why is it used?

Answer:  A condition supplement is a group of conditions that should be applied every

time a certain condition is found. for Eg: If u define a material price, u will enter
condition records for that material and the corresponding price. If u also want to give
discount to that material every time the price is determined, u can enter the discount
condition type as a condition supplement. So whenever the price is determined for the
material, it will automatically includes the discount condition records

.Q.What is the difference between milestone and periodic billing?

Answer:  Periodic: - full amount in each bill till contract period Milestone: - partial
amount in each bill till full amount is billed. Milestone billing is a billing plan type where
the customer have to pay the amount in parts within the billing date e.g. suppose the
bill amount of the customer is 1000 usd, the customer can pay 200usd,300usd as
mentioned on the Agreement whereas in periodic plan type the customer have to pay
the amount in a regular periodic interval.i.e. The customer have to pay the 1000usd in 1
year then the amount payable by the customer is 1000/12.

Q.What is the difference between Static and Dynamic Credit Check?

Answer: They both are belong to automatic credit check The only difference is Dynamic
contains a time/horizon/attach period .This time period used by the system where we
specify time in months .EX: 2 months .System will use this period to take open orders,
open deliveries etc. to get credit exposure .Within this attached time period not after
this specified period, u have to do delivery after this horizon period say 3 months latter
the delivery date so system will not calculate this date static check will carry out the
open sales orders +open deliveries +open billing + open items, dynamic check= static
check+ time horizon

Q.What are the issues u have faced in integration testing?

Answer:  GL ACCOUNT CANNOT BE DETERMINED DURING INVOICING MOVEMENT

TYPE NOT FOUND DURING DELIVERY STORAGE UNIT NOT FOUND IN THE BIN ERROR
DURING TRANSFER ORDER CREATION FOR DELIVERY ROUTE NOT DETERMINED
DURING DELIVERY TOR CANNOT BE DONE DURING DELIVERY ETC...

Q.What is the difference between condition type EK01 and EK02?

Answer: Ek01- the result of unit costing can be used as base for price (pr00)
determination. Ek02- the result of unit costing simply taken as a statistical value

Q.What is the Function of item category group?

Answer: The item category group determines how a material is processed in the sales
order. It defines, for example, that pricing does not take place for a free of charge item,
such as a business gift; or that inventory management is not carried out for a service.
When processing sales and distribution documents, the system uses the item category
group to determine the item category. The system determines the item category based
on the item category group of the material and the current business transaction, and
proposes it in the respective document. hen creating the material types non-stock
material and services, DIEN is proposed in both cases for the item category group,
because the order processing for both material types is identical: for example, pricing is
carried out for both, but no availability check.

Q.What is pricing procedure?

Answer: A pricing procedure is a procedure by where in which you control the

execution of condition types in a sequence you would like . It not only executes the
condition types but als0 controls the execution of condition type by the use of
requirements , altcv. altcbv, account key. Pricing procedure is a systematic and
sequential use of condition types to arrive at a right value of the product.To determine
the pricing procedure SALES AREA (Sales Organization + Distribution Channel +Division)
+ CUSTOMER PRICING PROCEDURE + DOCUMENT PRICING PROCEDURE
Q.What is condition exclusion?

Answer:  If we set an exclusion indicator in the definition of condition type during sales
document processing the system ignores the other condition type which exits below
that in the pricing procedure and which have same requirement

.Q.Which delivery document type for STO process?

Answer: For intracompany STO the delivery doc type is NL(i.e. within the one company
code)& for intercompany STO the delivery type is NLCC.

Q.What is difference between the header level condition and item level condition?

Answer: Header level conditions are for the whole document, while item level condition
is for the particular item only. header conditions do not have access sequences and
condition records, too.

Q.What is the link between credit management and subtotals?

Answer:  There is the link between credit management and subtotals. The reason why,
Business grant credit to the customer. so all the credit amounts of customer must stored
in corresponding tables in our sap system. so that In Pricing procedure for the condition
type Net value we assign A In the field Subtotal. the table for credits is komp-cmpre

Q.What is Delivery group and what is its purpose?

Answer: delivery group is grouping of all sub item to be delivery at one time. mostly
used in bill of materials.

Q.What is main purpose of maintaining the master data?

Answer:  IN SAP we can call these are master data like: 1. Customer master data 2.
Material master data 3. Customer material Information record 4. When we are
maintaining condition records like pricing Condition record, rebate condition record.
THE main purpose of maintaining the master data is that when we will create any
documents in sales like sales document, the data regarding customer is coming from
customer master and the data regarding material is coming from material master, and
for example in the sales order the delivery plant is coming from CMIR,OR CUSTOMER
MASTER OR,MATERIAL MASTER ,like this...
Q.What is line item?

Answer: There are 3 levels in a sales document i.e. header level, item level and schedule
line. Line item falls in the Item Level. 1)Line Item relates to material details or the item
details such as item number, name of material, quantity etc. 2)The item category of the
item which is determined by the system (by combination of Item Category Group from
Material Master, Sales Document Type, Usage and higher level item category)is copied
at Item Level of the sales documents. 3)Line Item contains the value and quantity also
which are not normally found at Header Level. 4)Examples of Line items are : Material,
Order Quantity, Material Group, Plant, Shipping Point, Route, Customer Material, Sales
Unit, price/discount/tax/freight per unit, etc. 5)Examples of Header data will make Line
Item more clear : Sold-to Party, Pricing date, Document currency, Price group, Customer
Group, Incoterms, Payment terms, Purchase Order Number etc.

Q.What is value SAP?

Answer: ASAP methodology is a methodology for component-based implementation

projects. Value SAP methodology is a methodology for evaluation, implementation and
continuous business improvement. Solution Manager is a natural extension of
Accelerated SAP and Value SAP methodology. SAP SM is mandatory for all Business
Suite 2005 and beyond.

Q.What happens when you overrate the customer? 

Answer: You can opt for any of the following 3 : 1)credit the customer for the amount
of short-charged invoice by creating a Credit Memo Request with reference to the
previous invoice and create a new sales order with correct rate 2)you can make a Credit
Memo Request for the overcharged amount and make a Credit Note Billing Document
to give credit for the difference amount 3)you may make an Invoice Correction Request.

Q.What are the functions performed in a support client?

Answer: The main function is resolving the day to day issues sent by the client. some
times enhancements also.And also read the detailed ticket issues

Q.What is the access sequence for header conditions?

Answer:  For header conditions, no access sequence will be there. the values for header
conditions should be entered manually during sales order processing. access sequence
is a search strategy which finds the right condition record from the condition table.

Q.What are the highest organizational units in SD, MM, PP and FICO?

Answer:  SD----sales organization MM----plant PP----plant FICO-----company code

Q.What is the functionality of negative posting in billing document?

Answer: Reverse and adjustment postings can also be marked as negative postings.

Negative postings are used to reduce the transaction figures in G/L, customer, and
vendor accounts. This allows you to give the transaction figures (following the reversal)
the status they would have had without posting the reversed document and its reversal
document. This type of reversal is called a negative posting. Its nothing but an
adjustment. Lets say you have creates a bill of 10 bucks and latter you realize its not
correct and the billing amount should be 8 bucks. To change the billing amount you
have to create a negative bill worth -2 bucks. Its a negative bill or in other words its an
adjustment of credit type. Similarly debit type adjustments are also there.Q.What is
mean of Rebate processing?Answer: Rebate is nothing but a special discount which is
given on to specific customer on certain sales volume with in specific period of time.
Rebate may given on a specific customer, if he do the targeted business within the
validity periods, A rebate is a discount which is granted subsequently to a rebate
recipient on the basis of defined sales volume within certain period. There are three
processes on rebate. 1:- Configuring Rebate 2:- Setting of rebate agreements 3:-
managing rebate agreement & payments But before the processing the rebate you
need to activate the following fields :- in Payer master record :- Sales organization :-
Billing document type. You have following rebate agreement types for your customer.
1:- Material rebate 2:- customer rebate 3:- customer Hierarchy rebate 4:- Material group
rebate 5:- Independent of sales volume.

Q.How is shipping point determined?Answer: shipping conditions + loading group +

Delivery plant = Shipping point

Q.What is the client specific data?Answer: Client specific data refer to the data that
can be accesses only when we log in to that Client Client specific data: a) Business data--
Master data of business partners, products, pricing etc b) Transaction data: Sales orders,
delivery, billing documents etc c) Customization data: All the IMG activities that are
saved with Customizing request number form the client specific dataQ.What is ABAP
debugging?Answer: Finding the errors in ABAP program and rectifying the error at run
time is done using ABAP debugging. The ABAP debugger is the development
workbench tool, which allows you stop a program during its execution when a particular
condition is met.

Q.How subtotal in pp is related to credit limit?Answer: subtotal field(A) in the pp

contains the total value and this value is checked with the credit limit of the
customer.Q.What is the difference between discount and rebate?Answer: Rebate: an
incentive to be given to a customer. clubbed with qty purchased by a customer within
the period specified (say one month)-conditional. Discount doesn’t depends upon the
turnover it is fixed. and can only differ from customer to customerQ.What will you do
in blue print stage?Answer: Business Blue print is a detailed documentation of the
requirements gathered from client. it represents the business process requirements of
the company. It is an agreed statement of how the company intends to run its business
within SAP system.Q.What is cut over strategy?Answer: Cutover strategy or cutover
plan is the activity done in ASAP methodology, while transferring the data from the
legacy system to the sap system. At this point of time the billing will be stopped, all the
open orders, contracts, pricing data will be transferred as per the cutover plan which is
provided by the implementation partner. Whatever you want to do on the system u
need to do before or after this activity.

Q.What is the relation between PGI and TOR

Answer: Depending up on TOR PGI takes place let me explain how it takes place when a
requirement comes this is been transferred to MRP through TOR. Depending up on the
availability of the material transfer of order takes place in which the requirement sits in
the storage location from there picking and packing process takes place and finally PGI
activity takes place. In general IN GENERAL TERMENOLOGY TOR IS THE ACTIVITY
WHICH TAKES PLACE BEFORE CREATING A DELIVERY DOCUMENT AND PGI PROCESS
TAKES PLACE AFTER CREATING A DELIVERY DOCUMENT.

Q.How is route determined?

Answer: Determination of the route is dependent on the following factors: (1)Departure

Country and departure zone-it gets determined from shipping point. (2)Shipping
Condition:-it is determined from sales doc. type or from SP (Customer master).
(3)Transportation Group:- it is determined from Material master. (4) transportation
Zone:- ship -to -party. (5)Receiving country. (6)Weight group (optional).

Q.What is consumption based planning?Answer: Consumption-based planning is

based on past consumption-values, statistical procedures for future requirements. It’s to
avoid the shortfall in requirement determined from reorder point or forecast
requirement. Difference between MRP and Consumption-based planning, MRP Planning
based on gross requirement through the Bill of Materials, Consumption-based planning
based on past consumption-values.Q.What is the relation ship between sales
organization and plants?Answer: (1)Sales Organization--> Plant Sales Organization is
assigned to plant in combination with Distribution Channel. Relation: Many-Many. (2)
sales Organization--> Company Code. Many-One. (3) Plant-->Company Code. Many-
One.Q.what does Item Category Control?Answer: An item category controls the
overall behavior of an item. It determines whether the item is relevant for pricing or not,
whether it is relevant for delivery or not, whether it is relevant for billing or not. It also
determines whether it is a free item, text item and it also help to determine the sales
document type.Q.What is Returnable packaging processing means?Answer: IT is
used in the process where by the business sells items to the customer. These items are
packed into shipping units such as boxes and crates .Then the customer can keep the
boxes and crates upto a certain period of time and then must return the item .Should
the customer not have return the shipping units within specified date or have been
destroyed ,then business may bill the customer for damaged goods . The stock we
deliver as special packaging materials .We kept at customer site .It can viewed in
"MMBE"with indicator "V" . Item category group is "VERP" . General item category is
"LEIH". "LAN" for returnable packaging pick up-(LA) "LNN" for returnable packaging
issue-(LN) Material group =00804 "TAL" -item category for returnable
packagingQ.What is IMG?Answer: 1. Step by Step plan for implementing the SAP
modules. 2. Procedures that have to be performed before a certain configuration can be
made. 3. Documenting the SAP R/3 configuration methodology along with the reasons
for configurations. 4. It forms the crux of business transactions in an SAP
implementation, and how each one of the steps in various modules have been
configured. 5. Finally, all configurations and their releases for a particular SAP R/3
implementation can be checked through the SAP IMG.

Q.What is Backorder processing?Answer: Backorder processing is functionality in SAP

where you can change the commitments and over-ride the blockage of stocks marked
against sales documents/deliveries. For e.g. you receive an order from a very important
customer for material "A" but the entire quantity of A is committed to another customer
"B" via earlier sales orders and this is where BACKORDER processing helps you to
change the commitment and shift stock due for B to A. This is the benefit of this
functionality. T.C.: V_RA - Backorder Processing

Q.What are the influencing factors for account determination?Answer:  sales

amount which is in sales order will be posted into some accounts. eg: sales price should
be posted into revenues account in the same way sales discount should be posted into
deduction account , other amount will post into some other account for this purpose we
maintain account determination. coming to the question's answer, influencing factors
for account determination is , chart of accounts,( FI consultant will tell that chart of
accounts which is used for that company code) sales organization, distribution channel,
account assignment group for customer ( which is in customer master data, sales area
tab page, billing view )account assignment group for material ( which is in material
master record, sales organization 1 view ( not sure plz check) account key which is
assigned in pricing procedure G/L account number ( FI consultant will give this
number)Q.What are dependencies in variant configuration?Answer:  Dependencies
establish relationship between characteristics and values of different characteristics. It is
required to get the pricing to the sales order through Procedure(dependency), to get
the BOM component selected for the material with quantity and to have the routing
time for each component. There are 5-types of dependencies... a.Precondition ...to hide
characteristics and its values b.Selection condition....to select a characteristics or values
c.Procedure..to Infer value for a characteristics d.Action...to infer value for a
characteristics but obsolete. e.Constraint...to have a consistency value flow to
configuration , it has to attach to configuration through dependency net....Q.What is
Extract used in condition tech. in pricing?Answer:  Condition technique used
condition table, condition type, access sequence, pricing procedure to determine pricing
information.Q.What is the use of pricing date in condition type?Answer: Pricing date
is the date in which the condition records are accessed. For e.g.: lets say you have the
price of the material as 1000Rs till Mar 2008 as per the validity period of condition
record and from April the same price of the material is 2000Rs as per the validity period
of the condition record. Now your pricing date in the Sales doc determines as which
price should be taken into account. Hope you are clear now.Q.What is the link/control
between sales and distribution and quality?Answer: When a complaint is executed.
Say, a faulty material is returned back to plant from the customer/consignee. The
material is taken in to the blocked stock, where by the quality link is involved. It's the
responsibility of the quality department to check the complaint and approve. That's the
reason we have billing block before issuing credit note/memo to the customer.

Q.How is access seq. controlled?

Answer: An access sequence (search strategy) is defined for each condition type (except
header and manual condition type) in pricing procedure. 1. Each access performed
during pricing procedure, the access sequence is made using condition table. 2. Access
sequence is a search key for condition record, which made up of key fields. 3. Access
sequence searches the condition records from most specific to the most general.
Example: Suppose you create a sale order for material M-10 for Customer 1500. and you
had maintained the condition records for that material 100 INR for per material. and you
also maintained the condition record for Customer1500/Material M-10 also i.e. for that
particular material and for that customer the Material price is 90 INR. In that condition
the system pick the material price as 90 INR and reject the material discount as 100INR.
Q.What is business item?

Answer: In item category, Business item specifies whether the business data at the item
level is allow to differ from business data in the document header during the sales
document processing. business data means sales data + shipping data + Billing data If
you configure (Check box active) the Business item in the Item category, system should
not allow to change the Incoterms in the sales order

Q.What is Lump sum payment?

Answer: Lump sum payment is a general term. It has no different meaning in the sap.
Exact meaning of lump sum is full payment. Q.what are the Steps in consignment
processing? Answer:  In consignment process, we have 4 stages. First phase, company
fill the goods at customer site, still it is the property of company, is called as
Consignment fill up,(CF) When the customer consumes the material company issues the
invoice is called as consignment issue (CI) If the customer finds that he got any material
defective he returns is called as consignment return (CR) When customer requests the
company to take back the material which is not sold by the consumer, the company will
pick this stock from the customer site is known as consignment pick up (cp)

Q.What is the purpose of creating user exits?

Answer:  A user exit is a place in a software program where a customer can arrange for
their own tailor-made program to be called. SAP creates user exits for specific programs,
screens, and menus within standard R/3 applications.These exits do not contain any
functionality. Instead, the customer exits act as hooks. You can hang your own add-on
functionality onto these hooks

Q.What is the difference between VK11 & VK31

Answer: Tcode vk11 used for individual Maintenance of condition record and Tcode
vk31 used for mass Maintenance of condition record

Q.What basic questions do they ask relating to order management?

Answer: Basic questions related to order management 1. In sale order what fields are
mandatory We can change them as per our requirement by going into account groups
and then fields 2. When u raise a sale order what field get filled by default? 3. when you
save a sale order what’s the background process which takes place?

Q.How is storage location determined?

Answer:  Determination of storage location depends upon the rule mentioned in the
delivery type. There are basically three rules for determining storage location, out of
which we basically use MALA rule:- MALA Rule:- (1)Shipping point. (2)Plant. (3)Storage
Condition. Other rules are MARE and RETA ,which are used for trade scenarios

.Q.What is the difference between ATP check and availability check?

Answer: ATP is know as available to promise quantities and it is Calculated as below.

Ware house stock + planned receipts - Planned issues = ATP quantities. Ex1. 100 + 50 -
75 = 75 is ATP Quantity Any remaining open quantity in the movement is regarded as
the ATP quantity and can be used to fulfill the next Requirement. Ex2. 25 + 100 -150 = -
25 ATP Quantity, In this case the system try to capture the stock from other inward
movement and try and match the order quantity 150.and even this is not available and
partially met then the system shows the negative ATP Quantities in the requirement line.
During the availability check the system determines the ATP quantities for the material
and the plant. The system behaves in performing the availability check based on how
the availability check is set in customizing. This can be viewed in the sales order, over
view screen procurement and you can see the confirmed quantity and ATP Quantity.
Availability check: Stock checks which is automatically carried out after every goods
movement and which should prevent the book inventory balance of physical stock (for
example, available stock) from reaching zero. types of Availability checks 1. Against ATP
2. Against product allocation 3. Against planning. Availability check is based on checking
group, Requirement class, and Requirement type and schedule line category.

Q.What will do in realization?

Answer: Realization phase in which the system is configured ,knowledge transfer occurs

,extensive unit testing is completed, and data mapping and data requirements for
migration are defined . The purpose of this phase is to implement the business process
requirements based on business blueprint. The system configuration methodology is
provided in two work packages :baseline(major scope) and final configuration
(remaining scope).Other main focal area of this phase are conducting integration tests
and drawing up end user documentation.

Q.What is the importance of release status and dynamic field?

Answer: The importance of release status in release procedures is to create the

condition records purely for the planning purpose. for further clarification see release
procedures in pricing. The Dynamic field check is to determine the customer-specific
fields, even the text fields.
Q.What is the parent and child relationship?

Answer: when after we r creating the IDOC type it will show screen, there we can create
the segments by right click. then one pop up window will display like which segment(Ex:
SEG1) u need to add to the IDOC then add the one more segment(Ex:SEG2) to the
IDOC . while add SEg2 to the IDOC , pop up will display like segment name which u can
add and there is the options like under which segment u need to create the segment
here u can select SEG1. now SEG1 ----> parent segment SEG2 ----> child to the SEG1

Q.How to configure partial deliveries?

Answer: we have to mark for partial delivery either in customer master or  In customer-
material info

.Q.What is ABAP query?

Answer:  ABAP/4 Query is a powerful tool to generate simple reports without any
coding. ABAP/4 Query can generate the following 3 simple reports: Basic List: It is the
simple reports. Statistics: Reports with statistical functions like average, Percentages.
Ranked Lists: For analytical reports. – For creating a ABAP/4 Query, programmer has to
create user group and a functional group. Functional group can be created using with or
without logical database table. Finally, assign user group to functional group. Finally,
create a query on the functional group generated.

Q.How is step and counter differentiated?

Answer:  Step Number is used to specify the sequential order for condition types.
Counter is used when two or more Condition Types required the same Step Number.
Ex : Step No. Counter C.Type 10 5 KOFI 10 10 KOFK step is sequential order of a
condition type. counter is nothing but sub sequential number of a condition  type.

Q.What are the effects of PGI?

Answer: the ownership of goods will be transferred with post goods issue and it
updates the stock quantity in warehouse decreases the volume of stock and increase the
goods sold.and also updates the postings to G.L.A/C

Q.What is condition supplement and why is it used?

Answer: What are the Techniques in delivery scheduling? Backward scheduling &

Forward Scheduling Backward scheduling: System calculates material availability date
based on the Requested delivery date. If the material is not available on that date the
system calculates the earliest possible delivery date based on the material available
date. Forward Scheduling

Q.What is Replenishment lead time?

Answer: RLT=The time taken by the material to be replenished For trading goods:

----------- RLT=plant delivery time+goods reciept processing time For finished goods:
------------------ RLT=Inhouse production timeQ.Where is shipping conditions
stored?

Answer: Shipping conditions are maintained in two places one is in customer master

record under sales tab page in shipping screen and another is in sale document type. If
u maintain in sale document type it over writes the value maintained in customer-
material info.

Q.What is material determination?

Answer: This is setup when business requires swapping of one material by the other
material in a sales document. Example - When a product is under engineering change or
there is a bug and you have another product, which is acceptable as replacement, then
material determination can be used to set this scenario. Old product can be replaced by
new product as per the launch date of the product. Material determination is also called
as “Product selection” *It uses condition technique for material *Material determination
procedure is based on the sales document type. With condition technique, criteria can
be defined and condition records can be maintained. *Standard material determination
procedure for order type OR is A00001. *Standard material determination condition
type is A001 *With standard setup, condition record for swap materials is maintained for
“material entered”. It means in standard SAP, material determination is triggered when
material is entered in the sales order. *Additional criteria can be added by customizing
condition type A001. *Material condition records are maintained in the main transaction
menu in master data Swapping can be based on certain business conditions. These are
called as Substitution reasons. For each substitution reason, you can define substitution
strategy. *Substitution strategy controls *System will automatically replace product as
per material determination record after carrying out availability check or can give list of
substitute products for users to check and select or replace material without availability
check. It can also control whether both substituted and substitute material can be
displayed in the sales order or only substitute material is to be displayed in the sales
order. *It controls printing of substituted or substitute material on output types like
order confirmations. *In delivery, no material determination is carried out for items
copied from the order. *Material determination in a delivery is carried out for new items
if material determination has been activated for the corresponding sales document type

Q.What is the central organizational element in purchasing?

Answer: Purchasing Organization.

Q.How is plant determined?

Answer:  System searches for the plant in the following manner:- (1) first it searches for
a plant from CMIR(customer-material info record). (2)If it is not found there then it will
search for a plant in Customer master record of ship-to-party. (3)If still it could not be
found then it will check in material master in Sales general/Plant view. in this sequence
the plant is determined.

Q.What is difference between listing and exclusion?

Answer: 1. Listing is nothing but whatever material u assign to particular customer, then
he can access those materials .But exclusion is nothing but excluding the Particular
material to the customer, then customer cannot access those materials. For example-In
pharmaceutical company, customer sometimes the customer may not have a license to
sell certain product, then we can use this function. 2.Listing is suppose for a certain or
group of customers u can assign materials only those can access. Exclusion is suppose u
don’t want that certain materials certain customer should not access .So the particular
customer can not purchase the same . Always exclusion is having higher priority than
listing. In exclusion the system refuses the entered materials if it is maintained in
exclusion record for specific customer but in case of material listing it accepts only
allowed material which we maintained in listing record for specific customer .

Q.How revenue account is determined?

Answer:  Revenue a/c is determination : 1. Application 2. Chart of accounts 3. Sales Org

4. Condition type 5. Account assignment group from customer 6. Account assignment
group from material 7. Account key

Q.When will you combine deliveries into one invoice?

Answer: we will combine multiple deliveries into one invoice, when the bill to party ,
payment terms and billing date is same. And also when billing date, that means billing is
done only once in a month for that particular customer, then you combine all deliveries
of that month create invoice Contact for more information
1) What is SAP Sales and Distribution?

Ans:

SAP Sales and Distribution is one of key component of SAP ERP system and is used to manage
shipping, billing, selling and transportation of products and services in an organization.

SAP Sales and Distribution module is part of SAP Logistics module that manages customer
relationship starting from raising a quotation to sales order and billing of the product or
service. This module is closely integrated with other modules like SAP Material Management
and PP.

2) What do you understand by Organization structure in SAP Sales and Distribution?

Ans:

SAP SD organization structure majorly consists of two steps: Creation of Organization elements
in SAP system and second is to link each element as per requirement. On the top of
organization structure in SD module, sales organization is at highest level and is responsible for
distribution of goods and services.

SAP recommends to keep number of sales organization in organizational structure to be

minimum which helps in making reporting process easy and ideally it should have a single Sales
organization.

3) What is Sales area, Distribution channel and division in SAP Sales and Distribution?

Ans:

 Distribution channel tells the medium by which products and services are distributed by
an organization to its end users. Division in an organizational structure represents a
product or service line in a single organization.
 A Sales area is known as entity which is required to process an order in a company. It is
comprised of Sales organization, distribution channel and a division.
  In SAP SD organizational structure, each sales organization is assigned to a company
code. Distribution channel and divisions are assigned to Sales organization and all
comprise to make a sales area.

4) What is the use of Sales area?

Ans:

A Sales area is known as entity which is required to process an order in a company. It is

comprised of Sales organization, distribution channel and a division.

5) Can you do delivery without shipping point?

Ans:

No, shipping point is required to perform goods delivery.

6) Is it possible to create invoices without delivery?

Ans:

No, invoice is not possible without delivery.

7) Give an example of Material Management integration with Sales and Distribution?

Ans:

Consider an example of creating a sales order in SAP SD, it involves copying details of item from
Material Management.

Availability check of the item and price details are also taken from MM but this can be
controlled this data in SD module. To create inbound and outbound delivery of goods for a
sales order, shipping details, loading point etc. also come from Material Master.

8) What is the use of SAP FI in SAP Sales and Distribution?

Ans:

In case of standard sales order, you create an outbound goods delivery to the customer. Here
movement 601 takes place. This movement is configured in MM and movement of goods hit
some G/L account in FI.

9) What are the link point of SAP Sales and Distribution with other SAP modules?

Ans:
 Link Points Module Involved
Availability Check MM
Credit Check FI
Costing CO/MM
Tax Determination FI
Transfer of Requirements PP/MM
10) What is the use of partner function in SAP Sales and Distribution?

Ans:

Partner function allows you to identify which functions partner has to be perform in business
process. Consider a simplest case, where all the customer functions are performed by partner
customer. As these are mandate functions they has to be defined as obligatory functions in SD
system.

11) What are different partner type functions available in SAP SD?

Ans:Below partner types are Customer, Vendor, Personnel, Contact Person and common
partner functions as per these partner types are −

Partner Type Partner Function Entry from System Master

Record
Customer (CU) Sold-to party (SP)Ship-to party (SH)Bill-to party (BP)Payer Customer number Customer
(PY) master record
Vendor (V) Forwading agent (fwdg agent) Vendor number Vendor
master record
Human resources (HR) Employee responsible (ER)Sales personnel (SP) Personnel number Personnel
master record
Contact Person (CP) Contact person (CP) Contact partner number (created in
customer
master recors,
no master
record of its
own)
12) What are the different Customer account groups that you can create in SAP SD?

Ans:

 Domestic customers
 Export Customers
 One Time Customers
13) What is a Sales activity? What are different sales activity that you perform in SD?

Ans:

All Sales activities in SAP SD system can be divided into presales and post sales activities.
Presales activities are classified as activities which occurs before product is sold to customer
and post sales activities are those which occurs after product is sold.

 Pre Sales Activities − Inquiry, quotation

 Post Sales Activities − Support, Relationship management

14) What is the use of Sales support in SAP SD module?

Ans:

Sales support is one of the key component in Sales and Distribution SD module. It is also called
computer Aided Selling SD-CAS.

This module helps organizations to create new sales, tracking of existing sales, and
performance and eventually help in improving marketing and sales in an organization.

SAP SD Sales support module provides an option of creating email list for the customer and
directly sending mails for new leads.

15) What do you understand by Sales Order processing?

Ans:

Sales order processing describes a function related to whole sale part of an organizational
business. Common functions under sales order processing −

 Availability of the articles purchased

 Checking for incomplete data
 Checking the status of the sales transaction
 Calculation of pricing and taxes
 Schedule the deliveries of goods
 Printing of documents or e-transfer of documents

16) What is the structure of Sales Order in SAP SD? How can you create, edit or display an
existing sales order?

Ans:
Structure of a Sales Order −

An inquiry from a customer consists one or more items that contains the quantity of a material
or service entered in the order.

The quantity in a Sales order is further divided into business lines and comprise of various
subsets and delivering dates.

Items in Sales order are combined in a hierarchy and allows to differentiate between batches or
to use combinations of materials.

All the valid conditions on the items are mentioned in item conditions. These conditions for an
item can be derived via a full condition and can be valid for entire sales order.

You can divide an item to multiple billing plan deadlines and each tells the time when a fixed
amount of the item is to be billed.

 VA02 − Edit a Sales Order

 VA03 − Display a Sales Order
 T-Code − VA01 Create a Sales Order

17) What is an inquiry under presales activity? How to create a new inquiry?

Ans:

An Inquiry is not a legal document and is used to record the information about delivery or
services from customers. The information that is captured using an inquiry is related to
materials and quality of goods.

Menu Path − Logistics → Sales and Distribution → Sales → Inquiry → Create

T-Code − VA11

18) How can you create a quotation in SAP Sales and Distribution?

Ans:

Quotation is a legal document to customer for delivery of goods and services. This is normally
issued after an inquiry from customer or without an inquiry.

 SAP R/3 Menu

 Logistics → Sales and Distribution → Sales → Quotation → Create
  T-Code − VA21

19) What is the difference between a Sales activity and a sales document?

Ans:

Sales Activity

Sales activities are categorized as Presales and post sales −

This include when you sell material rather you do your preparation for sales with the
customer…

Sales Call, Phone Call, Sales Letter, and post sales like support and relationship, etc.

Sales documents

These documents are considered under sales, where you sell the materials to the customer and
are created in SAP system to manage sales process.

Example − Sales orders, Quotations, etc.

20) How do you assign a sales organization to delivering plant?

Ans:

 SPRO-IMG-Enterprise Structure-Assignment-SD-Assign Plant to Sales

Organization/Dist.Channel
 T-Code − OVX6

21) Is it possible to process outbound delivery without a shipping point?

Ans:

No

22) What is the use of Sales support function in SD module?

Ans:

Sales support is one of the key component in Sales and Distribution SD module. It is also called
computer Aided Selling SD-CAS.

This module helps organizations to create new sales, tracking of existing sales, and
performance and eventually help in improving marketing and sales in an organization.
SAP SD Sales support module provides an option of creating email list for the customer and
directly sending mails for new leads.

Sales support stores all the data related to sales and distribution related to customers,
products, materials, competitor products, etc.

23) Give an example of a sales process from presales activity to free of charge
replacement?

Ans:

There is a customer telephone inquiry in the system and then customer requests a quotation
which can be created by referring to same inquiry. Next is the customer place an order on the
basis of quotation and a sales order is created by copying the information from the quotation
and if any modifications are required.

Merchandise is shipped and bill is sent to the customer. After the delivery of goods, customer
raises a claim damaged articles, a delivery can be created free of charge with reference to the
sales order.

24) What are different sales document in SAP system? How to create a sales document?

Ans:

There are different types of sales document that can be defined in SAP system −

 Credit Memo
 Debit Memo
 Standard Order
 Delivery Returns, etc.

To define a Sales Document

Enter T-Code − VOV8 or SPRO → IMG → Sales and Distribution → Sales → Sales Document →
Sales Document Header → Define Sales Document Type

In SAP Sales process, a standard item function is same as function of free or charge item or text
item?

No
25) What are the different factors to be considered while defining different types of item
categories?

Ans:

 General Data Control Elements

 Shipping data Control Elements
 Billing Data Control Elements

26) What are different schedule line categories as per different sales document?

Ans:

Inquiry −

 No Delivery of an item
 No Availability check
 Information purpose

Quotation −

 No Delivery
 No Movement

Order −

 Schedule line is suitable for delivery

 Movement type 601

Return −

 Schedule line is suitable for delivery

27) In a sales order how system does picks up plant?

Ans: You can assign particular material master to particular Plant and it picks up from there.

28) Why do you use pricing date in condition type?

Ans: It shows date of calculation of pricing procedure for that Particular document. So that in
future you can see the date on which pricing calculated for that particular document.

29) What is the use of copy control, explain?

Ans:
Copy Control is defined as a process in which important transactions in a sales document are
copied from one document to other. It consist of routines which determines the system how
the data is to be copied from source document to target document.

A SAP system contains number of these routines and you can also create additional routines to
meet the business requirements. To create a new routine you can use an existing sales
document as a reference.

How to find Copy Controls in SAP system?

These controls are created and configured under IMG and can be found at below menu path −

 SPRO → IMG → Sales and Distribution → Sales → Maintain copy control for sales
documents
 SPRO → IMG → Sales and Distribution → Shipping → Specify copy control for deliveries
 SPRO → IMG → Sales and Distribution → Billing → Billing Documents → Maintain copy
control for billing

30) What is pricing in Sales and Distribution? Explain?

Ans:

Pricing in Sales and Distribution is used to define the calculation of prices for external vendors
or customers and cost. Condition is defined as set of conditions when a price is calculated.

Example −

Consider a case when a customer orders specific quantity of a product on a particular day.
Various factors like customer, product, order quantity and date tells the final price to customer.
This information is stored in the system as master data in the form of condition records.

AbilitystruReal-life Case StudiesAssignment 31) What are the different pricing elements in
SAP system?

Ans:

There are various pricing elements like prices, surcharges, discounts, and taxes are defined in
SAP system as condition types. To manage pricing information for a pricing element in a
system, you have to create condition records.

32) What is condition record and condition table?

Ans:

A Condition table is defined as combination of keys to identify an individual condition record. A

condition record is defined as how system stores the specific condition.

33) Give an example of condition record and condition table?

Ans:

Example of Condition Record −

Entering the price of a product or to specify the discount for a privilege customer.

Example of Condition Table −

Condition records for a customer specific material prices are stored by a sales department. SAP
system contains a conditional table 005 for this purpose. Key of table 005 includes below field −

 Customer
 Material
 Sales Organization
 Distribution Channel

First two fields − Customer and Material determines the relationship between customers and
specific materials. Last two fields are used to identify organization data in SAP system.

34) What do you understand by condition technique and type?

Ans:

Condition type is defined as specific features of daily pricing activities in SAP system. Using
condition type you can also put different condition types for each pricing, discounts on goods,
tax and surcharge that occurs in business transactions.

35) Any example of using condition technique and type?

Ans:

Condition type allows you to define the discount for special material. This can be specified in
the system to calculate discount as an amount or it can calculate discount in terms of
percentage.
In case you have to use both discount types, two separate condition types has to be defined in
the system.

36) What are the predefined condition types in SAP SD system?

Ans:

Condition Type Description

PR00 Price
K004 Material discount
K005 Customer-specific material discount
K007 Customer discount
K020 Price group discount
KF00 Freight surcharge (by item)
UTX1 State tax
UTX2 Country tax
UTX3 City tax
37) What do you understand by surcharge and discount? What are predefined discount
type in SAP system?

Ans:

A standard SAP system includes variety of common discount types. You can also define
customize discounts and surcharges as per business requirement.

Standard SAP system includes below discount types −

Discount (Key) Kind of discount

Customer (K007) Percentage
Material (K004) Absolute
Price group (K020) Percentage
Material group (K029) Absolute discount by weight
Customer/material (K005) Absolute
Customer/material group (K030) Percentage
Price group/material (K032) Absolute
Price group/material group(K030) Percentage
Rebate processing (BO01) Group rebate (%)
Rebate Processing (BO02) Material rebate (fixed)
Rebate processing(BO03) Customer rebate(%)
Inter-company processing (P101) Intercompany discount (fixed)
Inter-company billing (P102) Intercompany discount (%)
Invoice lists (RL00) Factoring discount
Invoice lists (MW15) Factoring discount tax
38) How do you manage discounts in Condition record?

Ans:

While creating a condition records, you can use any of standard discount types. While doing
automatic pricing, system checks for the discount that satisfies a certain condition and it checks
for a valid condition records.

If a discount refers to a group like a material group or price groups, that group must be
assigned to relevant customer or material master record before automatic pricing is done in
the system.

39) What is the use of product proposals in SAP SD module?

Ans:

Product Proposal helps an organization to increase the sales by recommended other products
to the already added products or by replacing one already added. The products recommended
can be cheaper, expensive or similar to the product that is requested by the customer.

Automatic Product Proposal is one of most powerful tool used in online marketing of products.

Product Proposals can be mapped to specific requirement of business partners to match their
market requirement.

40) Can we extend material and customer to other sales area in SAP Sales and
Distribution?

Ans:

Sales area is a combination of sales organization and distribution channel and Division. Division
is a logical grouping of products, hence you can’t extend material to other sales areas. But you
can extend customer to other sales areas through common Distribution channel & division.

41) What are different sales order type that can be used in SAP SD system?

Ans:

There are different types of Sales Order that can be placed −

  Cash Sales

This is defined an order type where customer place an order, pick up the order and pay for the
goods. In this order type delivery of the order is executed immediately when the order has
been entered. Cash invoice and billing can be printed immediately from the order.

No Receivables is entered for customer as invoice amount is paid cash and directly entered to a
cash account.

 Rush Order

In this order type, delivery of good is picked by customer or you deliver the goods on the same
day when the order is placed.

 Scheduling Agreement

A scheduling agreement is defined as an external agreement with the customer and having
details of quantity of goods and delivery dates. This information is mentioned as schedule lines
In a standard system, Schedule lines can be created with the scheduling agreement or you can
also create these at later stage.

42) How do you manage deliveries when customer is not satisfied with product/service?

Ans:

Free of charge delivery or subsequent delivery is made when customer is not satisfied with
product or good or lesser quantity of good is delivered and company has to initiate a return as
per customer request. In this delivery, customer is not charged for shipping of goods.

Steps to be followed in case of Return request −

 Credit Memo −

This is done when customer wants refund for the delivered goods. System creates credit memo
sales document to customer with reference to sales order.

 Subsequent delivery −

This includes free of charge delivery of disputed goods to the customer. This is required when
incorrect quantity of goods is delivered to customer.

Creating a return request in system − T-Code − VA01

43) What is an outline agreement?

Ans:

Outline agreement is a long term purchasing agreement with vendor containing terms and
conditions regarding the material that is supplied by vendor.

Outline agreement are valid up to certain period of time and cover a certain predefined
quantity or value.

44) What are different type of outline agreements?

Ans:

Outline agreement is of following two types.

 Contract
 Scheduling Agreement

Contract

Contract is a long term outline agreement between vendor and ordering party over predefined
material or services over certain framework of time. There are two types of contract

Scheduling Agreement

A scheduling agreement is defined as an external agreement with the customer and having
details of quantity of goods and delivery dates. This information is mentioned as schedule lines
In a standard system, Schedule lines can be created with the scheduling agreement or you can
also create these at later stage.

45) What are different contract types? How to create a contract in SAP system?

Ans:

Quantity Contract − In this type of contract overall value is specified in terms of total quantity of
material to be supplied by vendor.

Value Contract − In this type of contract overall value is specified in terms of total amount to be
paid for that material to the vendor.

Contract can be created by following the below steps −

  Path to create Contract −
Logistics ⇒ Materials Management ⇒ Purchasing ⇒ Outline Agreement ⇒ Contract ⇒
Create
 T-code − ME31K

46) How you can create a scheduling agreement?

Ans:

Path to create Scheduling Agreement −

 Logistics ⇒ Materials Management ⇒ Purchasing ⇒ Outline Agreement ⇒ Scheduling

Agreement ⇒ Create ⇒ Vendor Known
 T-code − ME31L

47) What are the different activities under consignment stock in SAP SD?

Ans:

Consignment stock management includes four key activities in the system −

 Creating a Consignment Fill-Up (Stock is fill up at warehouse)

 Creating Consignment Issue (Stock issued from warehouse)
 Creating a Consignment Pick-Up (Stock return to manufacturer)
 Displaying Consignment Returns (Stock return from customer)

48) What is the use of shipping process in SAP Sales and Distribution? How do you define
modes of transport?

Ans:

Shipping is defined as an important activity in sales process. It comes under logistic chain and
guarantees customer service and distribution of goods.

It is a component of Sales and Distribution module and is used to perform outbound delivery
and other shipping activities like picking and packing of the goods.

In shipping process, below are the key sub processes −

 Delivery processing of the goods

 Picking of items
 Packing of the goods
 Post goods issue
  Shipping communication
 Planning & monitoring of shipping

To define Modes of Transport, navigate −

 SPRO → IMG → Logistics Execution → Transportation → Basic Transportation Function

→ Routes → Define Routes → Define modes of transport → Execute.

49) Which T-Code are Using for Customer master?

Ans:

XDO1

50) How many tabs are showing Customers master initial screen?

Ans:

3 Tabs. General Data, Company Code and Sales data.

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51) Where can we found the tax information in customer master?

Ans:

General Data—– Control Data —- Tax Information

52) What is the difference between transaction data and master data?

Ans:

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.

53) 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?

Ans:
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).

54) How many company codes can you assign to a business?

Ans:

One or more company code.

55) How many sales organization assign to a Company Code?

Ans:

One or more.

56) How many plants are assign in a company code?

Ans:

One or More.

57) Why are we creating Z reports?

Ans:

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.

58) Who is creating Company Code?

Ans:

FICO consultant.

59) Which T-Code are using for Account Determination?

Ans:

VKOA.
Total, Requirement, Alternative Condition Type, Alternative condition base value, Account Key,
Accruals Key.

60) What is the parent and child relationship?

Ans:

when after we r creating the IDOC type it will show screen, there we can create the segments by
right click. then one pop up window will display like which segment(Ex: SEG1) u need to add to
the IDOC then add the one more segment(Ex:SEG2) to the IDOC . while add SEg2 to the IDOC ,
pop up will display like segment name which u can add and there is the options like under
which segment u need to create the segment here u can select SEG1.

now SEG1 —-> parent segment

SEG2 —-> child to the SEG1

61) How to maintain Pricing Procedures?

Ans:

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.

62) What is Alternative condition base value? Give an example.

Ans:

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.

63) What is Alternative condition type? Give an example.

Ans:
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.

64) What is Invoice correction?

Ans:

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.

65) How many sales document types?

Ans:

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

66) Which T-Code are using for SD and MM Integration?

Ans:

67) One material can exist within one or more than one plant. Is it possible?

Ans:

Yes, it’s possible.

68) What is ASAP methodology?

Ans:

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.

69) How to utilize long material number in SD Sales BAPI?

Ans:

Instead of the of ‘MATERIAL’ field, user must use ‘MATERIAL_LONG’ field

70) What to do if in case there are multiple down payment items in final billing
document?

Ans:

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.

71) Getting Error message FF799 while releasing SD invoice to accounting

Ans:

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)

72) How can the we use report RVKRED08?

Ans:
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.

73) How can the user verify the output processing status log?

Ans:

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’.

74) Does tool ‘Synchronize Payroll Tax Data’ update any information in the BSI TaxFactory
system?

Ans:

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.

75) Is it possible for a material to have Two Base Prices?

Ans:

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

76) Difference between Delivery and Billing?

Ans:

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.

77) What Stands for SPRO?

Ans:

SPRO stands for SAP Project Reference Object

SPRO is used to configure the SAP System as per client’s requirement.   IMG (Implementation
Management Guide) menu which you will find customization settings for all SAP modules, will
be shown after executing SPRO transaction.

78) Tel about the Order to Cash Cycle ?

Ans:

A customer orders some items from your company by creating a sales order

(Tcodes: VA01, VA02, VA03, Tables: VBAK, VBAP etc).

Your company decides to deliver the items ordered by the customer. This is recorded by
creating a outbound delivery document (TCodes:VL01N, VL02N, VL03N, Tables: LIKP, LIPS etc).

Once the items are available for sending to the customer, you post goods issue which reduces
your inventory and puts the delivery in transit. This will create a material document. You will
post goods issue using VL02N but the material document created will be stored in tables MKPF,
MSEG.

You will then create shipment document to actually ship the items. (Tcodes: VT01N, VT02N,
VT03N, Tables: VTTK, VTTP etc)a

You finally create a sales billing document. (TCodes: VF01, VF02, VF03, Tables: VBRK, VBRP etc).
This will have a corresponding accounting document created that will be in BKPF, BSEG tables.

When customer pays to your invoice, it will directly hit your Account Receivables account in FI.

You will have to remember that these are not a required sequence. Some times, you may
configure your system to create a SD invoice as soon as you create a sales order or you may not
create a shipping document at all. This is the position where Functional Consultant would come
into picture and study the company’s order to cash process and configure the SAP system to do
so.

79) Explain how we will configure milestone billing , periodic billing and which scenario
we will use?

Ans:

Menu path: IMG->sales & distribution->Billing->billing plans->define billing plan types.

You set the start date and end dates if applicable to the type of billing you are using. What time
to be billed (end of month, start of month etc..)

Milestone is a billing plan type where a customer is billed for the amount distributed between
the dates until total value is reached eg: if the total billing amount is 1000 USD for a year. You
will bill the customer in different amounts say 200, 500, 300 at different intervals as per
customer agreement.

On the other hand Periodic billing is billing the customer for the total amount(here 1000 USD)
at regular intervals periodically until the customer agreement is reached. eg: 1000/12 for a 1
year agreement and say billed at the 1st day of every month

Explanation for Billing Plan for Milestone Billing

Milestone billing means distributing the total amount to be billed over multiple billing dates in
the billing plan. As each milestone is successfully reached, the customer is billed either a
percentage of the entire project cost or simply a pre-defined amount. During sales order
processing, the system determines from the item category whether a billing plan is required
and, if so, which type of plan ,The type of billing plan that is determined at this point is set up in
Customizing and cannot be changed in the sales document. Billing plans for periodic billing and
milestone billing plans for project-related milestone billing have different overview screens so
that you can enter data relevant to your processing.

80) What are posting Keys and How are they used while making postings?

Ans:

Posting Keys are defined at Client Level. Posting keys determine whether a line item is a debit
or credit as well as the possible field status for the transaction. In this context, it is essential to
understand the factors that determine the field status of a transaction. The field status within a
FI document is controlled by Accout Type, field status of Posting Key and the field status of the
G/L account.

Modifying the SAP delivered Posting keys are not recommended. if a posting key is to be
modified the best possible action is to copy the posting key that needs to be modified and then
modify the copy. we can define the posting keys using the transaction OB41.

It also determines the account type to which the debit or credit is to be made and whether it is
Spl G/L transaction. If it is a Spl G/L transaction, then the field for Spl G/L indicator becomes
required entry.

81) What are the Movement types in MM ?

Ans:

In SAP Materials Management, goods movement is distinguished using a three digit key which
is called the “movement type”. The movement type is important because it controls the screen
layout, adjustment of inventories, the GL account for financial purposes etc. Goods movement
have been discussed elaborately here. The various types of material movement types in SAP
materials management MM are given below:

Movement Type and Goods Movement

 101 Goods receiving for ordering

 104 Goods receiving blocking status for ordering
 122 Return delivery to suppliers
 201 Goods outflow (WA) to cost centers
 221 Goods outflow to project
 231 Goods outflow to customer order
 241 Goods outflow to factory
 251 Goods outflow to sales
 261 Goods outflow to order
 291 Goods outflow for all account allocations
 321 Release from quality checking
 551 Goods outflow for scrap
 321 Release from quality checking
 451 Returns from customers
 453 Inventory to inventory transfers
  501 Goods receiving without order
 511 No cost delivery
 521 Internal goods receiving without manufacturing order
 561 Inventory taking

82) Explain what is Physical Inventory?

Ans:

Main Business Scenario: Your enterprise has to carry out a physical inventory of its warehouse
stocks at least once per fiscal year to balance its inventory. Various procedures can be
implemented for this.

In a periodic inventory, all the enterprise’s stocks are physically counted on the balance sheet
key date. Every material has to be counted. During counting, the entire warehouse must be
blocked for material movements.

In the continuous inventory procedure, stocks are counted continuously throughout the entire
fiscal year. In this case, it is important to ensure that every material is physically counted at
least once during the fiscal year.

You can also implement special procedures, such as cycle counting (physical inventory at
regular intervals) and inventory sampling (physical inventory of randomly selected stocks).

Physical Inventory types:

Periodic; Sampling; Continuous; Cycle Counting

With both continuous and periodic inventory types, the following stock types can be included in
the physical inventory:

 Unrestricted use stocks in warehouse

 Quality inspection stocks
 Blocked stock

The cycle counting inventory method creates a physical inventory document only for stock type
1 (unrestricted use). The inventory sampling procedure is only applicable to stock types 1
(unrestricted use) and 2 (quality inspection stocks).

The Physical Inventory Process: Create physical inventory document->Set blocking indicator-
>Print physical inventory document->Enter count results->List of differences->Post differences
Physical Inventory Number:

The physical inventory number was created as an additional hierarchy above the physical
inventory document number. You can use it to group together different physical inventory

documents that belong together organizationally.

You assign physical inventory numbers when you create and change physical inventory
documents, and you can use them as an extra selection criterion for physical inventory reports.
This enables you to directly display the physical inventory documents per storage location,
customer, or vendor.

If you have not finished entering the complete physical inventory count, you can freeze the
book inventory balance in the physical inventory document to prevent goods movements from
changing the book inventory balance relevant to the physical inventory count, which would
result in incorrect inventory differences. You define in Customizing for Inventory Management
whether you can freeze book inventory balances in the storage location.

When entering a physical inventory count with reference to a physical inventory document that
contains many items with a quantity of zero, you can set zero count automatically for all items
that have not yet been counted.

In Customizing for Inventory Management, you can define the following value tolerances for
posting inventory differences for a user group:

maximum amount per physical inventory document maximum amount per document item

Relevant tables:

 IKPF: Header: Physical Inventory Document

 ISEG: Physical Inventory Document Items

83) What is the use of VPRS, EK01 and Ek02? For material cost we are using VPRS why we
need EK01 and EK02 ?

Ans:

VPRS is the internal price condition which is copies from material master and can not be
manual procss.It is mainly used to calculate revenue sv from particular material. EK01 is for
actual costing EK02 is for calculates costing for costing purpose.
84) How to stop PGI?

Ans:

We Can’t stop PGI (Post Goods Issue ), if u want to reversal u can use VL09 and then cancelled
delivery to use transaction VLO2N.

85) What is Business Process Reengineering ? Explain it ?

Ans:

BPR means the existing business process how you re-engineered to get client requirements.
(Line items clearing at the time of customer receipts which is not exists in the legacy)

86) How is shipping point determined?

Ans:

shipping point will be determined based on the shipping conditions, loading group and delivery
plant.AAAAAAAAAQA

87) Where do you assign Movement Type?

Ans:

we assign movement type in schedule line category. As is is related to transfer.

88) What is out put of Blue print ?

Ans:Blue print means collecting the business requirements and mapping these with in sap R/3
if propose is not met then some other solution how to map in SAP R/3 i.e AS IS – TO BE study so
the out put will be under standing the requirements and providing the solution in sap with flow
charts and get the acceptance from the business team before configure the system i.e
realization stage