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30 SAP SD Interview Questions for Beginners
30 SAP SD Interview Questions for Beginners
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.
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.
Initially developed by IBM, SAP was made to resolve software application problems. Later,
it came up with SAP R/3 application software, where R stands for real-time data processing
and 3 represents Application, Presentation, and Database Leaders.
SAP became popular in no time. It was adopted by giant enterprises that resulted in adding
many other SAP modules, such as finance and accounting, production and planning,
controlling, materials management, and more, to cover specific areas in a business.
Transportation of products
Credit Management
Shipping of Material
Information System
Billing-related
Sales Activities
Foreign Trade
Sales Support
Components in SAP, like sales areas, divisions, distribution channels, sales offices, and sales
groups, follow these two steps within an organization:
Multiple links are there between SAP SD and SAP MM. Material management is used to
create inbound and outbound sales and distribution updates. Likewise, MM is used to find out
the price details and availability of the product but is controlled by the sales and distribution
module.
SAP SD modules contain all the customer data and related information about their services. It
is one of the essential modules in SAP ERP that deals with billing, selling, and transportation
of goods and services of the organization. SAP SD also contains several sub-modules for
seamless functioning of the software.
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.
SAP SD counts all the steps within an organization through partner functions. These
functions allow the organizations to keep a record of which partner is linked to a particular
customer, the performance record, and the details of customers or partners with whom
business is carried out.
Partner Function
Partner Type
Vendor
Customer
Shipping
Forwarding agent
Selling
Human resource
Sales personnel
Sales activity is one of the activities that take place in SAP SD. They are the tasks that sales
personnel undertake to improve sales.
19. Name and describe types of pre-sales activities.
Pre-sale activities are those activities that occur before the product's sales to customers.
Inquiries and quotations from the vendors are a few of the pre-sale activities.
To determine the types of item categories, data control elements are used. Chances in the
existing item categories can also be taken, or new ones can be created using data control
elements. A few general data control elements are:
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.
A scheduling agreement is an external agreement that applies to the customers and contains
product details, delivery dates, and services.
24. Describe what the types of contracts are.
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.
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.
26. What are the schedule line categories in different sales documents?
According to the item category and sales document type, scheduled lines are categorized. All
these control elements are related to shipping and general data, which are used to categorize
schedule lines.
It is known as copy control when all the crucial data, such as transaction details, are copied
from one document to another. The SAP system consists of copy routines, which keep a
record of how the systems copy data from one source to another target document. Such type
of information helps create additional routines that will meet the business requirements.
There are three different levels in a sales order, which are as follows:
Header level: Used when the system copies the data from the header source to the target
header document.
Item level: Used to find out the line item status.
Schedule line level: Used when copying sales order is done from the billing document.
Pricing in SAP SD is done to figure out the prices of external customers or vendors. There is
some predetermined set of conditions when the pricing is calculated.
During the sales order process, manipulation of prices can be done manually on the item level
as well as the header level. The manual manipulation is dependent on individual conditions to
determine the price. The set of activities goes as follows:
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 until it's found successfully.
33. What is pricing by item category?
All the items are not suitable for pricing. The item is kept empty/blank if found it's not
suitable or relevant for pricing. Item category is used to determine the prices of such items.
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.
36. What are the features that the project proposal supports?
The relationship between different products is cross-selling. Its rules suggest up-selling,
down-selling, leading, and sub-associated products.
Generating product proposals, proposing accessories, and top N product list with respect
to specific promotions.
Different transactions define different sales document types. Business transactions are
grouped into sales documents categories as follows:
Sales orders
Outline agreement
The materials to manufacture a product are taken from several local vendors. In a quota
arrangement, a quota is assigned to each supply source. The one who drops the lowest quota
pricing will represent the product production.
39. What do you mean by the special business process in SAP SD?
The most significant feature of the SAP SD module is that it can create a special business
process like customizing the products and getting them manufactured personally, apart from
normal sales orders.
A few products are owned by the company that are located at the client's location. These
products are known as consignments.
Shipping activity is tracked to ensure logistics are running smoothly and customer service
and distribution are going seamlessly. Shipping is used to do outbound delivery and other
activities like packing goods and picking them to transfer to their destination.
42. What is picking, packing, and posting a good issue in delivery processing?
Picking, packing, and posting good issues in delivery processing - all these procedures are
done strategically in the SAP warehouse management system. SAP SD finds the best way to
handle goods by avoiding disturbances with the help of available data in the systems.
Packings are of two types: manual and automatic. Picking are of three types: self pick-up,
individual pick-up, and pick-up as per defined intervals.
43. 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:
A transfer order contains all the information related to transferring materials in and out of the
warehouse. It also contains data related to storage to execute logical stock transfers within the
allotted time frame.
One delivery is only processed by one shipping point, independent organizational entities. In
a shipping point, processing and monitoring of all deliveries and goods are carried out.
A special agreement is granted to the user on a specific sales volume over a particular time,
known as a rebate agreement. To customize rebate processing, follow these steps:
Create condition type groups to group different condition types in order to calculate the
rebate.
Create new condition types.
The set of transactions must be visible to reflect how the rebate is calculated at the invoice
level.
SAP helps outsource a business's security, infrastructure, and continuity at lower costs.
Customers prefer several SAP platforms for real-time analytics because of their quick
processing and solution capability. SAP is localized in over 120 countries and operates in 37
languages, which makes it versatile to collaborate with various companies.