1. What are the key components of SAP SD?

 Contract Handling and Management

 Customer and Vendor Master Data
 Transportation of products
 Credit Management
 Shipping of Material
 Information System
 Billing-related
 Sales Activities
 Foreign Trade
 Sales Support

2. What is SAP SD?

One of the primary modules, sales, and distribution, abbreviated as SD, is developed
by SAP (System Application Product) to manage billing, selling, shipping, and
transportation of several products they own. This module registers consumers' data,
along with the product they've purchased.

3. What is the primary function of SAP?

The primary function of SAP is to smoothly run and grow the businesses and
services in numerous large companies. It is one of the top Enterprise Resource
Planning (ERP) software.

4. Explain organizational structure in SAP SD.

Components in SAP, like sales areas, divisions, distribution channels, sales offices,
and sales groups, follow these two steps within an organization:

 Create organization element in the SAP system

 Link each element according to the requirement

5. Name the sub-modules of SAP SD.

 SAP SD-BF (Basic Functions)

 SAP SD-MD (Master Data)
 SAP SD-SLS (Sales)
  SAP SD-TBA (Transportation)
 SAP SD-SHP (shipping)
 SAP SD-FTT (Foreign trade)
 SAP SD-CAS (Sales support)
 SAP SD-BIL (Billing)

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

 e-Transfer of documents and printing them

 Checking the availability of the purchased articles
 Checking for incomplete data
 Scheduling goods delivery dates
 Checking the status updates of sales transactions
 Calculation of prices and taxes

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

 Availability Check
 Tax Determination
 Sales Order
 Link Points
 Credit Check
 Costing

8. What is the sales area in SAP SD?

The sales area in the SAP SD helps to determine what marketing strategy has been
adopted by one particular division for improving sales. It combines the sales
organization, divisions, and distribution channels.

9. What is the distribution channel in SAP SD?

Distribution channels in SAP SD consist of details and information on distributed

products. It keeps a log of all the services and products provided to the user by the
organization.

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

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

11. What is an outline agreement?

An outline deal or an agreement is a long-term purchasing agreement signed with a

vendor. Numerous terms and conditions are mentioned in the agreement stating the
materials are supplied by the vendors. There are two types of outline agreements
under SAP SD - scheduling agreement and contract.

12. What is a contract in an outline agreement?

The contract is a formal agreement signed between the vendor and the customer for
a period of time. There are two types of contracts - value and quantity.

13. Describe the process of creating a 'scheduling agreement'.

A scheduling agreement is an external agreement that applies to the customers and

contains product details, delivery dates, and services.

14. Mention what are the techniques available in delivery Scheduling?

The techniques available in delivery Scheduling are

 Backward Scheduling: The system calculates requested delivery date

 Forward Scheduling: The system calculates the earliest possible date based on
the material available date.

15. Describe what the types of contracts are?

There are two types of contracts:

  Quantity contracts: In this type of contract, the vendor has to write the terms and
conditions of the contract according to the material quantity being supplied.
 Value contracts: In this, the vendor has to pay the value for their services and
mention the same in the contract.

16. Explain the types of sales orders?

Different transactions define different sales document types. Business transactions

are grouped into sales documents categories as follows:

 Sales orders
 Inquiries and quotations
 Post-sale documents
 Outline agreement

17. Name the pricing and types?

 The price of a material depends upon several factors. To determine the price of
the material, the system is dependent on various predefined price types, which
are referred to as gross prices.
 There are three types of cost in a system - price list type, material price, and
customer-specific price.

18. What is Pricing procedure?

A pricing procedure in SAP SD (Sales and Distribution) is a systematic approach
used to determine the final price of a product or service in a sales document. The
pricing procedure defines the sequence and conditions under which various pricing
elements such as base price, discounts, surcharges, taxes, and freight charges are
applied to calculate the final price.
19. What is condition table In Pricing Procedure?

Condition tables store condition records. They define the fields that will be used to
determine prices (e.g., customer, material, sales organization).

 Configuration Steps for Setting Up a Pricing Procedure?

 Define Condition Types
 Define Access Sequences
 Create Condition Tables
  Define Pricing Procedure
 Assign Pricing Procedure
 Maintain Condition Records

20. Importance of Pricing Procedures?

 Consistency: Ensures consistent pricing across sales documents.

 Flexibility: Allows customization to meet complex pricing requirements.
 Transparency: Provides clear documentation of how prices are calculated.
 Efficiency: Automates price determination, reducing manual errors.

21. What are schedule line categories?

In a sales document, all the items are divided into schedule lines, which are assigned
to multiple control elements. The scheduled lines mention all the details, such as
quantity, delivery dates, inventory availability, and more.

22. What is the access sequence?

An access sequence is a search procedure used to find data for one particular type.
The system search order path can be determined to retrieve the data. An access
sequence consists of more than one access sequence that is used to search for a valid
record relevant to the conditions

23. What is the access sequence?

An access sequence is a search procedure used to find data for one particular type.
The system search order path can be determined to retrieve the data. An access
sequence consists of more than one access sequence that is used to search for a valid
record relevant to the conditions.

24. How is credit management done in SAP SD?

The next step after the sales have been made is to keep a record of goods sold and
money collected. This can also be done in the SAP SD module. The following are the
key features of credit management:

 Automatic credit check

 Simple credit check
25. Explain how you can assign distribution channel to Sales Organization?
To assign distribution to sales organization in SAP, you have to follow the path.

 SPRO (SAP Project Reference Object) >IMG >Enterprise structure >Assignment >
Sales and Distribution > Assign distribution channel to sales organization.

26. When would you use a SAP Return Order and SAP Credit Memo?
SAP Return Order is carried out when customer returns any previously purchased
products and requires a credit or money back. While credit memo is when the
customer is credited without returning any goods.

27. Explain what is the difference between SAP credit memo request and SAP Credit
Memo?
SAP Credit Memo (T-code VF01) is created on the basis of credit memo request (T-
code: Va01). Credit memo request is generated when you have to pay to the
customer. (Excess bill or damages or change in the price).

28. Explain what is Proforma Invoice and what are the types of it?
Proforma invoice is a reference doc for import and export negotiations. The standard
proforma invoice doc types are

 With reference to order – F5

 With reference to delivery- F8

29. Mention the transaction code used to create a return delivery?

Transaction code is used to create a return delivery is T/C VA01 with standard
order type RE, while return delivery is T/C VL01 with return delivery.

30. List out the five features you can control for the sale document type?
 Delivery,
 Text
 Partner
 Pricing
 Taxes
 Output