SAP SD Interview Questions

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April 22, 2021

SAP SD Interview Questions for Beginners

1. What is SAP SD?

SAP SD Stands for Sales and distribution. It is one of the primary modules developed by
SAP to manage the shipping, billing, selling, and transportation of their products. This
module stores the consumer and product data of the customer of a company.

SAP uses these details to make better choices and maintain a good relationship with the
customer and the company/organization. SAP SD when combined with other modules
like MM (material management), PP (production planning) can bring much better results
very quickly

2. What is the primary function of sap?

SAP (System Application Product) is one of the top ERP ( Enterprise Resource Planning)
software that is being used in many large enterprises to run smoothly and to grow in the
business and services.

3. What are the areas we use sap?

SAP was initially developed by a few IBM employees to resolve the problems arising in a
software application. After some time, SAP came up with application software, i.e., SAP
R/3 where R means real-time data processing and 3 represents Application,
Presentation, and database leaders.

Eventually, it gained popularity among many huge enterprises which resulted in adding so
many other SAP modules to cover certain areas in a business. A few of those modules
are Finance and accounting, controlling, production and planning, materials management,
etc.

4. Name the key components in SAP SD?

The key components in the SAP Sales and Distribution module are −

Customer and Vendor Master Data

Contract Handling and Management
Transportation of products
Shipping of Material
Credit Management
Information System
Sales Activities

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 Billing-related
Foreign Trade
Sales Support.

5. Explain organizational structure in SAP SD?

There are many components in SAP sales and distribution like sales areas, distribution
channel, divisions, sales office, sales group. And it follows two main steps which go as
follows:

To create organization elements in the SAP system

And to link each element according to the requirement.

6. Describe material management in the SAP ERP system?

Material management is also one of the key modules in SAP ERP systems, which is
interlinked with other modules of SAP R/3. Its primary operations are to keep a record
and monitor day-to-day business operations and requirements in the inventory. All these
SAP modules are interrelated with each other.

7. How is material management associated with SAP SD?

There are so many links between SAP SD and SAP MM. For example, Material
Management(MM) is required to create inbound and outbound updates for sales and
distribution. Similarly, price details and the availability of the product are taken from MM
but are controlled by the sales and distribution module.

Orders placed by the customers should be extended to the sales area in an organization,
or else it gets difficult or impossible to transact with the material. This shows that these
modules are interconnected to each other and all the other modules are interrelated.

8. What are sap sd modules?

SAP SD (Sales and Distribution) is one of the essential modules in SAP REP. It contains
all the data and information about their customers and services. It deals with shipping,
selling, and transportation of goods and services of the organization. There are many
sub-modules of SAP SD.

9. Name the sub-modules of SAP SD?

The business processes in an organization that is related to SAP SD goes as follows:

SAP SD-MD ( Master Data)

SAP SD-BF (Basic Functions)
SAP SD-SLS (Sales)
SAP SD-SHP (shipping)
SAP SD-TBA (Transportation)
SAP SD-FTT (Foreign trade)

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 SAP SD-BIL (Billing)
SAP SD-CAS (Sales support)

10. Explain about sales support?

Sales support is one of the major components of SAP SD. It is also called CAS (Copter
Aided Selling). The main purpose of this module is to help companies and organizations
to build new sales, tracking of old and existing sales, and keep a record of the
performance as well. This module will help these organizations to look up the work
progress and make changes in the procedures if necessary. It even helps to attain the list
of interested customers which you can connect through emails, which will ultimately help
in the business.

11. What are the main functions of sales order processing?

The wholesale side of an organization is the primary area of focus in the sales order. Its
primary functions are :

Checking the availability of the purchased articles.

e-Transfer of documents and printing them.
Checking for incomplete data.
Checking the status updates of sales transactions.
Scheduling goods delivery dates.
Calculation of prices and taxes.

12. Name the type of sales order (modules) related to SD?

Transfer of Requirements

Tax Determination
Availability Check
Sales Order
Link Points
Credit Check
Costing

13. What is the sales area in SAP SD?

The sales area in SAP SD is the combination of sales organizations, distribution
channels, and divisions. It will help us determine what marketing strategy has been
adopted by one particular division for improving sales.

14. What is the distribution channel in SAP SD?

This channel consists of information and details of the distributed products. This means it
keeps the log of all the products and services provided by an organization to its users.

15. Explain division in SAP SD?

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The division is a structure that shows the product and service lines of a product in an
organization.

Top SAP SD S/4 Interview Questions

16. What is a partner function?

There are many actions that happen in a company or an organization and sap sd count of
all the steps through partner functions. This function allows the organizations to keep a
record of performance and which partner is linked up to one particular customer, and
keeps the details of the people with whom the business process is carried out.

17. List the types of partner functions in SAP SD?

There are several partner functions based upon the types of partners and they go as
follows:

Partner Type
Partner Function
Vendor
Forwarding agent
Customer
Selling
Shipping
Billing
Human resource
Responsible for employees
Sales personnel

18. Explain sales activity in an SAP SD?

A lot of activities happen in SAP SD, and sales activity is one among them. Sales
activities are those tasks the sales personnel undertake to improve sales.

19. Name and describe types of pre-sales activities?

Sales activities are classified into two types:

Pre-sales activity: These are the activities that occur before the sales of the
products to customers, like quotations and inquiries from the vendors.
Post-sales activity: These are the activities that occur after the transactions have
been completed. These activities include relationship management and support.

20. List some of the general data control elements?

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Data control elements are used to determine different types of item categories. You can
also take chances in the existing item categories or create new ones. Some of the
general data control elements are:

What outputs are acceptable for business transactions

What is the size of a complete product?
Check if the pricing has to be carried out for an item or not.
Check if the item is suitable for shipping and billing.

21. What is an outline agreement?

A long-term purchasing agreement signed with a vendor is called an online deal or

agreement. The terms and conditions are written in the agreement stating the materials
that are supplied by the vendors.

there are two types of outline agreements under SAP SD:

Contract
Scheduling agreement.

22. What is a contract in outline agreement?

The customer (ordering parties) and vendor signup contracts for a certain period of time.
There are two types of contracts one is quantity contracts, and the other is value contract.

23. Describe the process to create a 'scheduling agreement?

It is an external agreement, and it applies to customers. These agreements basically

contain details of the products, delivery dates, and services.

24. Describe, what are the types of contracts?

There are two types of contracts, and they go as follows:

Value contracts: In a value contract, the vendor has to pay the value, and the
value is written accordingly
Quantity contracts: On the other hand, in a quality contract, a vendor has to write
the terms of the contract according to the quantity of the material being supplied.

25. What are schedule line categories?

All the items are divided into schedule lines in a sales document. These scheduled lines
are assigned to multiple control elements. These schedule lines contain all the details like
delivery dates, quantity, availability in inventory, etc. on the item with scheduled lines are
copied to SAP System.

26. What are the schedule line categories in different sales documents?

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Scheduled lines are categorized according to the sales document type and item category.
All these control elements that are related to general data and shipping are used to
categorize schedule lines.

27. What do you mean by copy control?

Copy control is a process where all the important data like transactions in sales are
copied from one document to another. An SAP System consists of copy routines. These
routines keep a record of how the systems copy data from the source to the target
documents. This information will help create additional routines that will meet the
business requirements.

28. How do copy controls work in SAP systems?

Copy controls have three different levels in a sales order which goes as follows:

Header level: It is used when the system copies the data from the header source
document to the target header document.

Item level: This is used to find out the status of the line item.

Schedule line level: This is only relevant when copying of sales orders is done from the
billing document.

29. How is pricing done in SAP SD?

Pricing is used to determine the prices of external vendors or customers. There are some
set of conditions when the price is being calculated.

30. What is manual pricing?

During the sales order process, we can also perform manual pricing by manipulating the
prices of the items as well as header level. Manual processing is dependent on individual
condition types to determine the price. Activities which you can perform goes as follows:

Entering additional pricing elements

Deleting the pricing element.
Changing a condition

SAP SD Interview Questions for 6 Years Experienced

31. What is the condition table and record?

A combination of keys is required to identify an individual condition record; this is called a

condition table. A system stores data in a specific condition also called a condition
record.

32. What is the access sequence?

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Access sequence is a search procedure that is used to find data for one particular type.
We can determine the system search order path to retrieve the data. Access sequence
consists of one or more access sequences, which is used to search until it finds the valid
record relevant to the conditions.

33. What is pricing by item category?

Not all the items are necessarily suitable for pricing. If an item is not relevant for pricing,
then those lines are kept empty/blank. Therefore the item category is used in determining
the prices of the items.

34. Name the pricing and types?

The system depends on various predefined price types to determine the price of the
material. It is also referred to as gross price. These types of costs in a system are:

Material price
Price list type
Customer-specific price.

35. Explain SAP SD Product proposals

Proposing a new product is always an excellent strategy to improve the sales
performance of any organization. The products recommended might be cheaper,
expensive, or similar to the products that are requested by the customer.

Automatic product proposal is one power tool that the system uses to market products
online. They are capable of matching their market requirement. SAP CRM module is very
helpful as it consists of data to make such types of proposals.

36. What are the features that the project proposal supports?

Product proposal supports features like :

Cross-selling is the relationship between different products. Its rules suggest leading
products and sub associated products, Up-selling and down-selling,

Top N product list, Proposing accessories, Generating product proposals with respect to
specific promotions.

37. Explain the types of sales orders.

In the SAP system, different transactions define different sales document types. Business
transactions are grouped into sales documents in various categories which goes as
follows:

Inquiries and quotations

Sales orders

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 Outline agreement
Post-sales documents.

38. What is the quota arrangement?

Different materials are used to produce a product, and we get those materials from
various vendors. A quota arrangement is where a quota is assigned to each supply
source. Usually, the one who drops the lowest quota rating will represent the product
production.

39. What do you mean by the special business process in SAP SD?

SAP SD module has the capability to create a special business process like customizing
the products and get products manufactured personally, apart from the normal sales
order.

40. Explain consignments processing.

Consignments are also known as products that are owned by the company that is located
at the client's location.

41. Explain shipping in SAP SD.

Shipping is an important activity that comes under the logistics chain and ensures
customer service and distribution of goods. It is used to do outbound delivery and other
activities like picking, packing of the goods.

42. What is picking, packing, and posting a good issue in delivery

processing?
All these procedures are done in the SAP warehouse management system. All these
procedures are done strategically. With all the data in the systems, the SAP SD uses to
find the best way to handle the goods and avoid disturbance. There are two types of
packing; manual and automatic. There are three types of picking; picking them
individually, as per defined intervals, or self pick-up.

43. How is credit management done in SAP SD?

SAP SD has to have a record of the goods sold and the money collected. This is the next
step after the sales have been made. The key features of credit management are:

Simple credit check.

Automatic credit check.

44. What is mapping an enterprise structure in SAP SD?

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An enterprise structure represents the structure of business in the real world.
Requirements like the client, distribution channel, company code location, etc. can define
various organizational units.

These are some important interview questions on SAP SD for beginners and experienced
candidates. I hope these questions will help you get familiar with the concepts and
insights of SAP SD and help you prepare for the interviews as well.

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