SAP SD Interview Questions Part -1

This SAP SD Interview Questions contains few questions answers for fresher as well as experienced as a free online practice test.

What is SAP Sales and Distribution?

Answer

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.

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

Answer

  • 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.

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

Answer

  • 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.

What is the use of Sales area?

Answer

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.

Can you do delivery without shipping point?

Answer

No, shipping point is required to perform goods delivery.

Is it possible to create invoices without delivery?

Answer

No, invoice is not possible without delivery.

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

Answer

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.

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

Answer

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.

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

Answer

Link Points Module Involved
Availability Check MM
Credit Check FI
Costing CO/MM
Tax Determination FI
Transfer of Requirements PP/MM

What is the use of partner function in SAP Sales and Distribution?

Answer

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.

What are different partner type functions available in SAP SD?

Answer

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 (PY)

Customer number Customer 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)

What are the different Customer account groups that you can create in SAP SD?

Answer

  • Domestic customers
  • Export Customers
  • One Time Customers

What is a Sales activity? What are different sales activity that you perform in SD?

Answer

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

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

Answer

  • 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.

What do you understand by Sales Order processing?

Answer

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

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

Answer

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.

  1. VA02 − Edit a Sales Order
  2. VA03 − Display a Sales Order
  3. T-Code − VA01 Create a Sales Order

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

Answer

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

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

Answer

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

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

Answer

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.

How do you assign a sales organization to delivering plant?

Answer

  • SPRO-IMG-Enterprise Structure-Assignment-SD-Assign Plant to Sales Organization/Dist.Channel
  • T-Code − OVX6

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

Answer

No

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

Answer

  • 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.

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

Answer

  • 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.

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

Answer

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