SAP SD Interview Questions and Answers

SAP SD Interview Questions and Answers

Our experts providing  SAP SD interview questions & Answers/Faqs can develop your carrier & knowledge to find the right job in a good MNC’s, doesn’t matter what kind of company you’re hired.

1) What is SAP Sales and Distribution?

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.

2) What are the primary functions of Sales and Distribution?

SAP SD handles all the processes of order to delivery. It executes the business processes used in selling, shipping and billing of product and services.
• Inquiries & Quotes
• Sales Orders
• Sales Return
• Consignment
• Contract & Scheduling Agreements
• Credit & Debit Memo requests
• Rush Orders & Cash Sales
• Back Orders

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

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.

4) What do you understand by Sales Order processing?

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

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

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.

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

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

7) Explain what is condition types? What is the path to define condition type in SAP for pricing?

The representation of certain aspects related to your daily pricing activities is referred as condition types.

The path for condition type for pricing is

SAP IMG path: SPRO > SAP Reference IMG > Sales and Distribution > Basic Functions > Pricing > Pricing Control > Define Condition Types

8) What are the three levels that copy controls are set up? And what are the transaction codes through which it could be done?

At three levels of sales order copy controls are set up Header level, Item level and Schedule line level.
• VTAA: from sales order to sales order
• VTLA: from sales order to delivery
• VTAF: from the billing document to sales order
• VTFA: from sales order to billing document
• VTFL: from delivery to billing document
• VTFF: from the billing document to billing document

9) 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

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

For sale document type the five features you can control is

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

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

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

12) Explain how shipping point is determined?

Shipping point is determined by,

Shipping Conditions + Loading Group + Delivery Plant = Shipping Point

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

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.

14) How you can create a scheduling agreement?

Path to create Scheduling Agreement –

Logistics ? Materials Management ? Purchasing ? Outline Agreement ? Scheduling Agreement ? Create ? Vendor Known

T-code – ME31L

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

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)

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

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

17) What are different type of outline agreements?

Outline agreement is of following two types.

Scheduling Agreement

18) What is an outline agreement?

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.

19) 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

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

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.

21) What is condition record and condition table?

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…….For more  Click Here


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