SAP SD Interview Question and Answer

Part 1:

1) What is SAP SD? 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

2) What is the organizational structure in sales and distribution?

The organizational structure in sales and distribution is.

• Sales Organization
• Distribution Channel
• Division
• Sales Office
• Sales Groupb

3) 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

4) Explain how shipping point is determined?

Shipping point is determined by,

Shipping Conditions + Loading Group + Delivery Plant = Shipping Point.

5) 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.

6) Mention what are the Sales Document types in SAP? What is the configuration step to define sales document type in SAP SD?

The Sales Document types available in SAP are.

• Credit Memo Request
• Debit Memo Request
• Standard Order
• Returns, etc.

Configuration steps for SAP SD

IMG Menu Path: SPRO > IMG > Sales and Distribution > Sales > Sales Documents > 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) Mention what is the Reversal PGI? Can you cancel the PGI and mention the transaction code for PGI?

PGI or Post Good Issue is done to keep a record of available goods in stock after the goods are delivered. Good issue transaction cannot be cancelled but can be reversed.

The transaction t-code for reverse PGI is VL09. Partial quantity reversal is not possible, in the delivery document you cannot reverse the PGI for one item/ partial quantity.

9) 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).

10) 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.

11) Explain what is SAP Posting Period? What is the transaction code to open and close posting period?

SAP posting period is to make sure that posting period for the business sales order is aligned with financial posting date, which means when financial accounting is ready for closing and proceed with the payment.

The transaction code to open and close posting period is S_alr_87003642

12) Explain what Copy control is and when Copy Control transition can be done? In what manner Copy Control transition can be done?

In SAP SD, the process of copying data from the source document to the target document is done by Copy Controls. They consist of program referred as routing that determines how the system will transfer the data. Copy control could be useful for the end users who don’t want to repeat the control parameters from order- to delivery- and then billing.

Copy control can be done in following manner:

• Sales document by sales document
• Billing document by sales document
• Sales document by delivery
• Sales document by billing document
• Delivery by billing document

13) 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

14) Explain how you can include condition type in the pricing procedure?

To include condition type in the pricing procedure, you have to follow the pathway

Basic Functions >Pricing >Pricing Control >Define and Assign pricing procedure and then select “ Maintain pricing procedures” after that select pricing procedure and then “Control Data” and add your condition type to the pricing system.

15) 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

16) 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 doctype LR

17) Mention what are the two places where you need to configure CIN (Country Version India)?

The two places where you have to configure CIN is Financial Accounting > Tax on sale and purchase, and other is Logistic General -> Tax on Goods Movement

18) Explain what is the difference between rush order and cash sales?

• Rush Order: Order delivery will be done on the same day while billing will be done later
• Cash Sale: Billing and order delivery will be done on the same day

19) 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

20) Mention what are the techniques available in delivery Scheduling?

The techniques available in delivery Scheduling are

• Backward Scdg: The system calculates requested delivery date
• Forward Scheduling: The system calculates the earliest possible date based on the material available date

Part 2:

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
• 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)
• 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?

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

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?

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? 

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

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?

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
• 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?

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.

Part 3:

Q 1 – What do you understand by SAP SD? What are the functions related to it?

Ans – SAP SD (Sales Distribution) is all about the process of order to delivery. Further, it is essential for executing all kinds of business procedures like shipping, selling, and billing of products. It is also used for –

• Sales orders
• Consignment
• Credit & Debit memo requests
• Backorder
• Inquiries and Quotes
• Sales return
• Contract & Scheduling agreements
• Rush orders & Cash sales

Q 2 – Is it possible to allocate different sales organizations within a similar company code?

Ans – Yes! It is possible to assign the same company code.

Q 3 – What is the prominence of the shipping process? And how can you define the modes of transport?

Ans – We all know that shipping is an essential part of any manufacturing company to ensure efficient customer services and delivery of products. Shipping is required for outbound delivery, planning and monitoring, post goods issues, picking and packaging of goods, and shipping communication.

Talking about the modes of transport, there are few ways of defining them –

• Using T-code SPRO.

• Visit IMG> Logistics Execution > Transportation > Basic Transportation Function > Routes > Define Routes > Define modes of transport > Click on ‘Execute’

Q 3 – Can you tell me about the difference between milestone and periodic billing?

Ans – Firstly, about the periodic, it is a full amount mentioned in each bill and continues until the contract period. In contrast, the milestone is about the partial amount, which is mentioned until the full amount is billed.

Q 4 – Can you explain organizational elements that create the sales area and their function?

Ans – Basically, the product groups are generally defined as a wide-ranging spectrum of products. In every division, it is possible to create a customer-specific agreement. Moreover, it is also possible to carry out statistical analyses and setting up separate marketing.

Q 5 – What is the co-relation between Credit Control Area and Company Codes?

Ans –A credit control is necessary for assigning more than one company code to more than one credit control area. Credit Control Area is present as an organizational unit used for specifying and checking credit limits for customers.

Q 6 – What are the methods used in delivery scheduling?

Ans – In general, there are two types of techniques available in delivery Scheduling. These are mentioned as –

• Forward scheduling – In this system, you can calculate the earliest possible date dependent on the material available date.
• Backward Scdg – This is about calculating the requested delivery date.

Q 7 – What is meant by the Outline Agreement and its different types?

Ans – Well, an Outline Agreement is defined as a long-term purchasing agreement done with the vendors. In this agreement, you will find general terms and conditions related to the material that is usually supplied by the vendors. Outline agreements have two types that are involved in the SAP SD course.

• Scheduling Agreement: It is known as an external agreement comprising the details of services, products, and delivery dates.
• Contract: The contracts usually exist between ordering parties and vendors over a specified period. You will find two types of contracts mentioned as value contracts and quantity contracts.

Q 8 – How you can use product proposals in SAP SD?

Ans – Product proposals are known as critical aspects whenever we discuss SAP SD. Such proposals are used in various companies needed for revamping the sales quotient by endorsing the products at the time of sales document processing. Moreover, these proposals can easily be mapped depending on the specific requirement of business partners so that they can easily match the market demands.
Q 9 – Can you tell the difference between an inquiry and a quotation?

Ans – Firstly, the inquiry is the process that includes registration of the customer’s probable requirements. On the other hand, the proposal is a kind of legally abiding document, which is offered to customers following the terms and conditions for delivering the service as well as the product.

Q 10 – How can you define Cross-company Stock Transfer?

Ans – Cross-company Stock Transfer is the method of delivering the sales order via another company code. Moreover, it is also essential for providing the material from a plant having one company code to plant in another company code.

Q 11 – What is meant by Term Consignment Stock?

Ans – Consignment stock is generally the material that is available on the company premises but does not add in the stock. It is only added when it is either marked as sold or sent to the production department.

Q 12 – What is Pricing and its different kinds of elements in SAP SD?

Ans – In SAP SD, pricing is mentioned as a process that generally includes the calculation of costs and prices for both external vendors and customers. Defining the pricing elements, these are the condition types present in an SAP system. The condition types are defined as a set of scenarios that are taken care of at the time when pricing is assigned to a service or product. Some such elements are surcharges, prices, taxes, and discounts.

Q 13- What is the use of Copy Control?

Ans – Whenever any key transaction in sales is done, there is a required sales document that needs to be copied to another document. Here, the process of copy control is usually incorporated. Several routines show how data should be copied using a source document to target the document.

Q 14 – Define something about Transferring the Legacy Data to System

Ans – As the name suggests, it is about transferring the legacy data to all new configured and installed systems. Legacy data is known as data like material and customer that is maintained by organizations before they install the ERP system. There are lots of tools available that are needed to transfer the legacy data to Systems such as Legacy System Migration Workbench Programs and Batch Data Communication (BDC).

Q 15 – Do you know about the transaction codes used for creating and changing customer master?

Ans – Here are some of the Transaction codes which are used for the same purpose.

– XD01: Used for creating customers.

– XD02: Required for changing a customer.

– XD03: Needed for displaying a customer.

– XD04: Essential for altering customer changes.

– XD05: Required for blocking a customer centrally.

– XD06: marking a customer for deletion.

– XD07: Changing a customer account group.

– XD99: Upholds customer maintenance.

– XDN1: Keeping the numbers ranging for a customer.

Q 16 – What are the steps involved in the underlying system for determining the tax number and tax classification?

Ans – There is a sequence of steps included in determining the tax number as well as tax classification. These are –

• In case the payer has a VAT registration number, it is easy to copy the tax classification and tax number from the payer. Further, this tax number is copied depending on the ‘country of destination relevant for taxes.’
• If step 1 is not able to apply or ship-to party has a VAT registration number, it is possible to copy the tax number and classification from the ship-to party.
• Moreover, if step 2 also doesn’t work, then also tax number and tax classification can be copied from the sold-to party.

Q 17 – Is it possible to create material in company codes when working on Inter-Company Sales?

Ans – At the time of working on Inter-Company Sales, there is a transaction code MM01 required for creating materials relevant to the plant and sales organization. One can extend the material if someone is using a common server.
Q 18 – Can you list the essential elements involved in the customer master record?

Ans – Here, we are mentioning the necessary elements required for a customer master record.

• Company code data
• General data
• Sales area data

Q 19 – How can one create a Quotation?

Ans – As we know, the quotations are present as legal documents that are sent to the customers. There is information like the delivery of services and goods that are included in the quotation. For creating a quotation, one has to use the transaction code ‘VA21’.

Q 20 – How can you differentiate between Sales Document and Sales Activity?

Ans – Sales Document: This document is related to sales and is generally built in the SAP system for managing the complete sales process.

Sales Activity: The mentioned activities are classified as post- and pre-sales activities. They are used to improve the sales of any company.

Q 21 – Can you define the structure of a sales order?

Ans – Any inquiry coming from the customers’ side mostly comprise one or more items containing the number of products. This quantity is further divided into business lines that have different sales parameters. It has seen that the items are generally combined in a hierarchy, and therefore, it is possible to create a difference between batches.

Q 22 – When can you use the SAP credit memo and SAP return order?

Ans – Talking about the SAP credit memo, it is usually created based on a credit memo request. It can be generated at the time when you have to pay the customer. The return order is about receiving the returned goods coming from the customers. Hence, the sales department is responsible for creating return orders, and based on this return delivery document is created.

Q 23 – What is the name of the Central organization required at the time of purchasing?

Ans – Purchase Organization is the key element used during the time of purchasing.

Q 24 – Define Sales Office, Sales Groups, and Sales Employees in SD module

Ans – Sales Office: Sales office is a geographical group that is created for structuring a sales team within an organization. The sales office can be assigned to one or more Sales Area.

Sales Groups: There is a staff of Sales Office that is divided into Sales Groups and further to Sales Employees. So, Sales Groups is a kind of group of persons related to the sales department working for numerous purposes.

Sales Employees: Sales employees are those who have personnel master records required for managing data of Sales employees.

Q 25 – Explain about Shipping Point and Loading Point in SD module

Ans – First coming to the shipping point, it is a point from where the team can ship the deliveries of products. Though, the subdivision of the shipping point is referred to as a loading point that means a manual entry in the header data of delivery according to customization.

Q 26 – Can you tell me what a division in the SD module is?

Ans – A division is present as a product group for a vast range of services. In sales organizations, there are lots of divisions that incorporate customer-specific arrangements.
Q 27 – Do you know what R/3 is?

Ans – R/3 is present as a three-tiered architecture, which is used by the system. There are three tiers mentioned:

• Application server
• Database server
• Presentation server

Q 28 – Describe the role of ERP in any business environment

Ans – ERP (Enterprise Resource Planning) is called a software package. It is designed especially for the integrated management of numerous business processes like order placement, invoicing, inquiry, and billing. Though, it is much needed in manufacturing industries to accomplish the core business areas like finance and production. Due to the popularity of the ERP package, its functionalities can also be extended to cover the overall business management.

Q 29 – Have you heard about Quick Viewer?

Ans – It is available as a beneficial tool for creating reports in System. Furthermore, it is useful for creating reports without any help from programming. It is quite similar to ABAP Query.

Q 30 – Why is there a need for creating Z reports?

Ans – SAP has recognized to offer different reports in every module. In case if the standard reports do not comply with the business requirement, then there is a need to develop your reports. Z reports, also known as ABAP custom reports, can create any program that needs to start with Z.

Q 31 – What do you mean by Alternative Condition base value?

Ans – This indicates typically a formula required for a condition type to promote an alternative base value needed for the calculation of a value.

Q 32 – Tell something about Invoice correction?

Ans – Invoice correction is a kind of sales document (RK). It is a documented process showing a new method of processing complaints and issuing both debit and credit memos. It also allows the users to correct the price and quantity for more than one faulty item present on an invoice. The request for each invoice is made about the invoice. There are two items in each invoice correction request. The first one is the quantity and value copied from the given invoices. The second one is the debit item that shows the correct quantity and value.

Q 33 – Describe Sales organization, Distribution channel, and Division

Ans – Sales Organization: It is an organization unit involve in selling and distributing products, negotiating terms of sales, and accountable for truncations.

Distribution channel: As the name implies, the mentioned channel acts as a medium for materials or services to reach customers. It contains internet sales, retail, direct sales, and wholesale. The distribution channel can be assigned to one or more sales organizations.

Division: This is a wide-ranging spectrum of products.

Q 34 – What do you mean by ASAP methodology?

Ans – ASAP is all about streamlining the implementation process, and this can be done by offering methods, tools, templates, and accelerators. These are generally built on various SAP implementations. Further, this implementation is divided into 5 phases.

Phase 1 – Project Preparation

Phase 2 – Business Blueprint

Phase 3 – Realization

Phase 4 – Final Preparation

Phase 5 – Go-live and Support

Q 35 – How will you define the Item Category?

Ans – In the field of SAP, the sales item category is considered to be very important. A company requires it to control the sales document flow while impacting the schedule line category. The item category put an effect n delivery and billing process.

Q 36 – How will you deal if there are multiple down payment items present in final billing?

Ans – There are specific steps required to be followed when there is a cleared down payment request is needed to be cancelled. Such steps are also required to avoid the doubled down payment items.

• T-code FBRA is used for clearing.
• If someone wants to cancel the clearing needs, it can be done via t-code FB08.
• One can cancel the down payment request by VF11.

Q 37 – Explain something about Condition Supplement

Ans – When a company wants to offer a discount regardless of combination up till a certain period, this is known as Condition Supplement. The system, by default, provides discounts together with a base price.

Q 38 – Differentiate between Rebate and Discount

Ans – Discount: It is a general disc, which is usually applied in business transactions frequently. It is available for all the customers.

Rebate:

Rebate is an agreement present between Sales Org. It is a kind of special discount, which is given occasionally. Thee customers can avail of this discount on reaching the sales volume within a time.

Q 39 – How can you explain Access Sequence for Header Conditions?

Ans – Access Sequence is a type of search strategy that is used for finding the correct condition record using the condition table.

Q 40 – Tell us about Partial Delivery or Backorder Processing?

Ans – Sometimes, there is a lack of material to complete the sales order. In such circumstances, a delivery date is given when the goods available are available before the delivery date. Thus, it is possible to deliver the goods before the arrival of the first delivery date. This process is known as Backorder processing.

Q 41 – You must have heard about the Bill of Material. What does it mean?

Ans – Bill of Material is a ubiquitous term used in Sales Distribution. It combines a group of materials with two products named header level item and item level item. You can say that it is a list of raw materials, parts, intermediate assemblies, sub-components, and quantities required at the time of manufacturing.

Q 42 – What are the different partner functions available?

Ans – There are four types of partner functions available mentioned –

• Ship to Party – Where a person received the goods.
• Payer – In this, a person pays the payment.
• Sold to Party – An individual who places the order.
• Bill to Party – A person who gets the bills.

Q 43 – Is it possible to delete Sales Order Numbers?

Ans – For your information, it is difficult to delete the sales orders once you saved them. One can either cancel the sale order or reject it.

Q 44 – Mention some of the influencing factors used in Account Determination for an invoice. 

Ans – Here, we are mentioning some of the influential factors that you should also know.

• AAG of the customer.
• A/c key.
• Chart of A/c.
• AAG of material.

Q 45 – Why you should select SAP over others?

Ans – There are lots of technical reasons that make you implement SAP in your company as well. SAP is highly configurable, provides safe data handling, minimize data redundancy, maximum data consistency, and others. Thus, you can get the profit of sales like tight integration-cross function and purchasing.
Q 46 – How can you close the Backorders?

Ans – It can be done through an availability check.

Q 47 – What are the steps involved in assigning distribution channels to a sales organization?

Ans – The assignment ensures that the sales organization is capable of supplying the materials to customers via the distribution channel. The steps include in this are:

Q 48 – How you can customize Rebate processing in SAP SD?

Ans – We are mentioning steps followed for customizing the Rebate processing.

• Firstly, activating the rebate in customer master data.
• Activating the selling material in MM data.
• It is required to activate sales org.
• Activate the billing doc.

Q 49 – What do you mean by shipping points?

Ans – Shipping Point is defined as an organizational element that is answerable for shipping the materials and deliver to the customers.

Q 50 – Describe Transfer Order

Ans – In simple terms, a transfer order is a process of picking the order. Generally, the material is picked from the storage, loading area, and picking area.

Part 4:

1) What is SAP Sales and Distribution?

Ans:

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.

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

Ans:

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.

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

Ans:

• 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.

4) What is the use of Sales area?

Ans:

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.

5) Can you do delivery without shipping point?

Ans:

No, shipping point is required to perform goods delivery.

6) Is it possible to create invoices without delivery?

Ans:

No, invoice is not possible without delivery.

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

Ans:

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.

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

Ans:

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.

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

Ans:

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

Ans:

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.

11) What are different partner type functions available in SAP SD?

Ans:Below partner types are Customer, Vendor, Personnel, Contact Person and common partner functions as per these partner types are −

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

Ans:

• Domestic customers
• Export Customers
• One Time Customers

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

Ans:

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

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

Ans:

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.

15) What do you understand by Sales Order processing?

Ans:

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

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

Ans:

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.

• VA02 − Edit a Sales Order
• VA03 − Display a Sales Order
• T-Code − VA01 Create a Sales Order

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

Ans:

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

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

Ans:

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

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

Ans:

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.

20) How do you assign a sales organization to delivering plant?

Ans:

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

Top of Form

Bottom of Form

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

Ans:

No

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

Ans:

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.

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

Ans:

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.

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

Ans:

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

In SAP Sales process, a standard item function is same as function of free or charge item or text item?

No

25) What are the different factors to be considered while defining different types of item categories?

Ans:

• General Data Control Elements
• Shipping data Control Elements
• Billing Data Control Elements

26) What are different schedule line categories as per different sales document?

Ans:

Inquiry −

• No Delivery of an item
• No Availability check
• Information purpose

Quotation −

• No Delivery
• No Movement

Order −

• Schedule line is suitable for delivery
• Movement type 601

Return −

• Schedule line is suitable for delivery

27) In a sales order how system does picks up plant?

Ans:

You can assign particular material master to particular Plant and it picks up from there.

28) Why do you use pricing date in condition type?

Ans:

It shows date of calculation of pricing procedure for that Particular document. So that in future you can see the date on which pricing calculated for that particular document.

29) What is the use of copy control, explain?

Ans:

Copy Control is defined as a process in which important transactions in a sales document are copied from one document to other. It consist of routines which determines the system how the data is to be copied from source document to target document.

A SAP system contains number of these routines and you can also create additional routines to meet the business requirements. To create a new routine you can use an existing sales document as a reference.

How to find Copy Controls in SAP system?

These controls are created and configured under IMG and can be found at below menu path −

• SPRO → IMG → Sales and Distribution → Sales → Maintain copy control for sales documents
• SPRO → IMG → Sales and Distribution → Shipping → Specify copy control for deliveries
• SPRO → IMG → Sales and Distribution → Billing → Billing Documents → Maintain copy control for billing

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

Ans:

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.

31) What are the different pricing elements in SAP system?

Ans:

There are various pricing elements like prices, surcharges, discounts, and taxes are defined in SAP system as condition types. To manage pricing information for a pricing element in a system, you have to create condition records.

32) What is condition record and condition table?

Ans:

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.

33) Give an example of condition record and condition table?

Ans:

Example of Condition Record −

Entering the price of a product or to specify the discount for a privilege customer.

Example of Condition Table −

Condition records for a customer specific material prices are stored by a sales department. SAP system contains a conditional table 005 for this purpose. Key of table 005 includes below field −

• Customer
• Material
• Sales Organization
• Distribution Channel

First two fields − Customer and Material determines the relationship between customers and specific materials. Last two fields are used to identify organization data in SAP system.

34) What do you understand by condition technique and type?

Ans:

Condition type is defined as specific features of daily pricing activities in SAP system. Using condition type you can also put different condition types for each pricing, discounts on goods, tax and surcharge that occurs in business transactions.

35) Any example of using condition technique and type?

Ans:

Condition type allows you to define the discount for special material. This can be specified in the system to calculate discount as an amount or it can calculate discount in terms of percentage.

In case you have to use both discount types, two separate condition types has to be defined in the system.

36) What are the predefined condition types in SAP SD system?

Ans:

37) What do you understand by surcharge and discount? What are predefined discount type in SAP system?

Ans:

A standard SAP system includes variety of common discount types. You can also define customize discounts and surcharges as per business requirement.

Standard SAP system includes below discount types −

38) How do you manage discounts in Condition record?

Ans:

While creating a condition records, you can use any of standard discount types. While doing automatic pricing, system checks for the discount that satisfies a certain condition and it checks for a valid condition records.

If a discount refers to a group like a material group or price groups, that group must be assigned to relevant customer or material master record before automatic pricing is done in the system.

39) What is the use of product proposals in SAP SD module?

Ans:

Product Proposal helps an organization to increase the sales by recommended other products to the already added products or by replacing one already added. The products recommended can be cheaper, expensive or similar to the product that is requested by the customer.

Automatic Product Proposal is one of most powerful tool used in online marketing of products.

Product Proposals can be mapped to specific requirement of business partners to match their market requirement.

40) Can we extend material and customer to other sales area in SAP Sales and Distribution?

Ans:

Sales area is a combination of sales organization and distribution channel and Division. Division is a logical grouping of products, hence you can’t extend material to other sales areas. But you can extend customer to other sales areas through common Distribution channel & division.

41) What are different sales order type that can be used in SAP SD system?

Ans:

There are different types of Sales Order that can be placed −

• Cash Sales

This is defined an order type where customer place an order, pick up the order and pay for the goods. In this order type delivery of the order is executed immediately when the order has been entered. Cash invoice and billing can be printed immediately from the order.

No Receivables is entered for customer as invoice amount is paid cash and directly entered to a cash account.

• Rush Order

In this order type, delivery of good is picked by customer or you deliver the goods on the same day when the order is placed.

• Scheduling Agreement

A scheduling agreement is defined as an external agreement with the customer and having details of quantity of goods and delivery dates. This information is mentioned as schedule lines In a standard system, Schedule lines can be created with the scheduling agreement or you can also create these at later stage.

42) How do you manage deliveries when customer is not satisfied with product/service?

Ans:

Free of charge delivery or subsequent delivery is made when customer is not satisfied with product or good or lesser quantity of good is delivered and company has to initiate a return as per customer request. In this delivery, customer is not charged for shipping of goods.

Steps to be followed in case of Return request −

• Credit Memo −

This is done when customer wants refund for the delivered goods. System creates credit memo sales document to customer with reference to sales order.

• Subsequent delivery −

This includes free of charge delivery of disputed goods to the customer. This is required when incorrect quantity of goods is delivered to customer.

Creating a return request in system − T-Code − VA01

43) What is an outline agreement?

Ans:

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.

44) What are different type of outline agreements?

Ans:

Outline agreement is of following two types.

• Contract
• Scheduling Agreement

Contract

Contract is a long term outline agreement between vendor and ordering party over predefined material or services over certain framework of time. There are two types of contract

Scheduling Agreement

A scheduling agreement is defined as an external agreement with the customer and having details of quantity of goods and delivery dates. This information is mentioned as schedule lines In a standard system, Schedule lines can be created with the scheduling agreement or you can also create these at later stage.

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

Ans:

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

46) How you can create a scheduling agreement?

Ans:

Path to create Scheduling Agreement −

• Logistics ⇒ Materials Management ⇒ Purchasing ⇒ Outline Agreement ⇒ Scheduling Agreement ⇒ Create ⇒ Vendor Known
• T-code − ME31L

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

Ans:

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)

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

Ans:

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.

49) Which T-Code are Using for Customer master?

Ans:

XDO1

50) How many tabs are showing Customers master initial screen?

Ans:

3 Tabs. General Data, Company Code and Sales data.

51) Where can we found the tax information in customer master?

Ans:

General Data—– Control Data —- Tax Information

52) What is the difference between transaction data and master data?

Ans:

Master Data refers to the characteristics of an object whereas transaction data refers to all the transactions that are carried out using the object. Any data which does not change so frequently in master data like configuration settings like company data, personal area etc. Any data which keeps changing so often in transactional data, like employee data.

53) A is your client; B is your client’s customer. B need X material, but X material is now out of stock, then you can solve this problem?

Ans:

In this case, we are using third party process. This process uses a purchase order (Which is sent to you by vendor). Also, invoice verification is used further along the process to check that the invoices you send to your customer are the same material and quantity as that which the vendor sent to the customer (But obviously shipped directly to your customer).

54) How many company codes can you assign to a business?

Ans:

One or more company code.

55) How many sales organization assign to a Company Code?

Ans:

One or more.

56) How many plants are assign in a company code?

Ans:

One or More.

57) Why are we creating Z reports?

Ans:

SAP have provided a lot of reports in each module. However, if the standard reports do not meet the business requirement, we can develop our own reports.ABAP custom reports are called z reports because any program developed have to start with Z.

58) Who is creating Company Code?

Ans:

FICO consultant.

59) Which T-Code are using for Account Determination?

Ans:

VKOA.

Total, Requirement, Alternative Condition Type, Alternative condition base value, Account Key, Accruals Key.

60) What is the parent and child relationship?

Ans:

when after we r creating the IDOC type it will show screen, there we can create the segments by right click. then one pop up window will display like which segment(Ex: SEG1) u need to add to the IDOC then add the one more segment(Ex:SEG2) to the IDOC . while add SEg2 to the IDOC , pop up will display like segment name which u can add and there is the options like under which segment u need to create the segment here u can select SEG1.

now SEG1 —-> parent segment

SEG2 —-> child to the SEG1

61) How to maintain Pricing Procedures?

Ans:

In Pricing Procedures 16 steps are needed to maintain. These are Step, Counter, Condition Type, Description, From, To, Manually, Mandatory, Statistically, Print, Sub 

Total, Requirement, Alternative Condition Type, Alternative condition base value, Account Key, Accruals Key.

62) What is Alternative condition base value? Give an example.

Ans:

This column indicates a formula assigned to a condition type in order to promote an alternative base value for the calculation of a value. For example, you may specify a formula that uses a subtotal of 4 from the subtotal field and then modifies it slightly by dividing it by 2 and using the resultant value as a base value for a condition type.

63) What is Alternative condition type? Give an example.

Ans:

This column is used to specify that the system is to use the formula represented in this column as an alternative in finding the value of the condition type, rather than by using standard condition technique. This is may be used, for example, to calculate complex tax scenarios.

64) What is Invoice correction?

Ans:

It is a sales document type(RK). This documented process a new way of processing complaints and issuing credit and debit memos. The document allows us to correct the quantity and the price for one or more faulty items on an invoice. Each invoice correction request is made in reference to a (mandatory) invoice. We cannot create one in reference to an order or quotation. Each invoice correction request contains two items for each item on the invoice. The first item is the value and quantity copied from the invoices; this appears as the credit item. The second item is the debit item, which represents the correct quantity and or value. Should you change this second debit item due to new pricing etc, the difference between the two would then be automatically passed on to billing as either a credit or debit memo.

65) How many sales document types?

Ans:

Sales Document Header (VBAK), Sales Document Item (VBAP), Sales Document Schedule line (VBEP).

66) Which T-Code are using for SD and MM Integration?

Ans:

67) One material can exist within one or more than one plant. Is it possible?

Ans:

Yes, it’s possible.

68) What is ASAP methodology?

Ans:

ASAP streamlines the implementation by providing templates, methods, tools and accelerators that have been built on the success of thousands of previous SAP implementations.

This methodology divides the implementation process into 5 phases.

• Phase 1: Project Preparation.
• Phase 2: Business Blueprint.
• Phase 3: Realization.
• Phase 4: Final Preparation.
• Phase 5: Go-live and Support.

69) How to utilize long material number in SD Sales BAPI?

Ans:

Instead of the of ‘MATERIAL’ field, user must use ‘MATERIAL_LONG’ field

70) What to do if in case there are multiple down payment items in final billing document?

Ans:

In case, a cleared down payment request is required to be cancelled then the user must perform the following steps in order to avoid doubled down payment items in the final billing document:

• The clearing should be set back via t-code FBRA
• The clearing needs to be cancelled via t-code FB08
• Finally, the down payment request can be cancelled by VF11.

71) Getting Error message FF799 while releasing SD invoice to accounting

Ans:

User is required to maintain the default tax jurisdiction code in transaction OBCL

This must be at a state level, that is only first level which has to be maintained. For instance:

•   Inside t-code OBCO the tax procedure encompasses jurisdiction code structure 2 2 0 0
•   the default tax jurisdiction code should be XX00 (where XX is the code of first level)

72) How can the we use report RVKRED08?

Ans:

The term ‘Period’ refers to an option visible on the initial screen for report RVKRED08 where a selection option for ‘Date of next credit check’ has been provided, in the documentation.

The default period is referred to as the starting to the end of the current month, this can also be adjusted in case the date falls outside this default period.

The option ‘Take release data into account’ permits the user to exclude all those documents which have been released manually. For Instance, incase this option is selected, all documents which were released manually will be excluded when the report is executed.

73) How can the user verify the output processing status log?

Ans:

Post output processing (e.g. for billing document), user can verify the output processing log in VF03 through the menu path Goto -> Header -> Output: by selecting the relevant output type and clicking on ‘Processing log’.

74) Does tool ‘Synchronize Payroll Tax Data’ update any information in the BSI TaxFactory system?

Ans:

Yes. The tool will detect the mapping between SAP Tax Authorities (e.g. ‘FED’) and BSI Tax Authorities (e.g. ‘00000000’) and it automatically creates any missing mapping in the BSI Dataset which subsequently corresponds to the client of the system in which the user ran the tool. This is done when user selects to run the tool in productive mode for client-specific tables.

75) Is it possible for a material to have Two Base Prices?

Ans:

Yes, by maintaining the validity period in records & the value gets triggered as per the pricing date mentioned in the transaction (Order).

76) Difference between Delivery and Billing?

Ans:

Billing is a document which raised to the payer. It includes the amount he has to pay for the product/service he is receiving from the business.

Delivery is a document which contains the information related to the delivery of the product. Like delivery quantity, actual delivery date, packing,picking etc. Generally, delivery document can be created for the ship-to-party.

77) What Stands for SPRO?

Ans:

SPRO stands for SAP Project Reference Object

SPRO is used to configure the SAP System as per client’s requirement.   IMG (Implementation Management Guide) menu which you will find customization settings for all SAP modules, will be shown after executing SPRO transaction.

78) Tel about the Order to Cash Cycle ?

Ans:

A customer orders some items from your company by creating a sales order

(Tcodes: VA01, VA02, VA03, Tables: VBAK, VBAP etc).

Your company decides to deliver the items ordered by the customer. This is recorded by creating a outbound delivery document (TCodes:VL01N, VL02N, VL03N, Tables: LIKP, LIPS etc).

Once the items are available for sending to the customer, you post goods issue which reduces your inventory and puts the delivery in transit. This will create a material document. You will post goods issue using VL02N but the material document created will be stored in tables MKPF, MSEG.

You will then create shipment document to actually ship the items. (Tcodes: VT01N, VT02N, VT03N, Tables: VTTK, VTTP etc).

You finally create a sales billing document. (TCodes: VF01, VF02, VF03, Tables: VBRK, VBRP etc). This will have a corresponding accounting document created that will be in BKPF, BSEG tables.

When customer pays to your invoice, it will directly hit your Account Receivables account in FI.

You will have to remember that these are not a required sequence. Some times, you may configure your system to create a SD invoice as soon as you create a sales order or you may not create a shipping document at all. This is the position where Functional Consultant would come into picture and study the company’s order to cash process and configure the SAP system to do so.

79) Explain how we will configure milestone billing , periodic billing and which scenario we will use?

Ans:

Menu path: IMG->sales & distribution->Billing->billing plans->define billing plan types.

You set the start date and end dates if applicable to the type of billing you are using. What time to be billed (end of month, start of month etc..)

Milestone is a billing plan type where a customer is billed for the amount distributed between the dates until total value is reached eg: if the total billing amount is 1000 USD for a year. You will bill the customer in different amounts say 200, 500, 300 at different intervals as per customer agreement.

On the other hand Periodic billing is billing the customer for the total amount(here 1000 USD) at regular intervals periodically until the customer agreement is reached. eg: 1000/12 for a 1 year agreement and say billed at the 1st day of every month

Explanation for Billing Plan for Milestone Billing

Milestone billing means distributing the total amount to be billed over multiple billing dates in the billing plan. As each milestone is successfully reached, the customer is billed either a percentage of the entire project cost or simply a pre-defined amount. During sales order processing, the system determines from the item category whether a billing plan is required and, if so, which type of plan ,The type of billing plan that is determined at this point is set up in Customizing and cannot be changed in the sales document. Billing plans for periodic billing and milestone billing plans for project-related milestone billing have different overview screens so that you can enter data relevant to your processing.

80) What are posting Keys and How are they used while making postings?

Ans:

Posting Keys are defined at Client Level. Posting keys determine whether a line item is a debit or credit as well as the possible field status for the transaction. In this context, it is essential to understand the factors that determine the field status of a transaction. The field status within a FI document is controlled by Accout Type, field status of Posting Key and the field status of the G/L account.

Modifying the SAP delivered Posting keys are not recommended. if a posting key is to be modified the best possible action is to copy the posting key that needs to be modified and then modify the copy. we can define the posting keys using the transaction OB41.

It also determines the account type to which the debit or credit is to be made and whether it is Spl G/L transaction. If it is a Spl G/L transaction, then the field for Spl G/L indicator becomes required entry.

81) What are the Movement types in MM ?

Ans:

In SAP Materials Management, goods movement is distinguished using a three digit key which is called the “movement type”. The movement type is important because it controls the screen layout, adjustment of inventories, the GL account for financial purposes etc. Goods movement have been discussed elaborately here. The various types of material movement types in SAP materials management MM are given below:

Movement Type and Goods Movement

• 101 Goods receiving for ordering
• 104 Goods receiving blocking status for ordering
• 122 Return delivery to suppliers
• 201 Goods outflow (WA) to cost centers
• 221 Goods outflow to project
• 231 Goods outflow to customer order
• 241 Goods outflow to factory
• 251 Goods outflow to sales
• 261 Goods outflow to order
• 291 Goods outflow for all account allocations
• 321 Release from quality checking
• 551 Goods outflow for scrap
• 321 Release from quality checking
• 451 Returns from customers
• 453 Inventory to inventory transfers
• 501 Goods receiving without order
• 511 No cost delivery
• 521 Internal goods receiving without manufacturing order
• 561 Inventory taking

82) Explain what is Physical Inventory?

Ans:

Main Business Scenario: Your enterprise has to carry out a physical inventory of its warehouse stocks at least once per fiscal year to balance its inventory. Various procedures can be implemented for this.

In a periodic inventory, all the enterprise’s stocks are physically counted on the balance sheet key date. Every material has to be counted. During counting, the entire warehouse must be blocked for material movements.

In the continuous inventory procedure, stocks are counted continuously throughout the entire fiscal year. In this case, it is important to ensure that every material is physically counted at least once during the fiscal year.

You can also implement special procedures, such as cycle counting (physical inventory at regular intervals) and inventory sampling (physical inventory of randomly selected stocks).

Physical Inventory types:

Periodic; Sampling; Continuous; Cycle Counting

With both continuous and periodic inventory types, the following stock types can be included in the physical inventory:

• Unrestricted use stocks in warehouse
• Quality inspection stocks
• Blocked stock

The cycle counting inventory method creates a physical inventory document only for stock type 1 (unrestricted use). The inventory sampling procedure is only applicable to stock types 1 (unrestricted use) and 2 (quality inspection stocks).

The Physical Inventory Process: Create physical inventory document->Set blocking indicator->Print physical inventory document->Enter count results->List of differences->Post differences

Physical Inventory Number:

The physical inventory number was created as an additional hierarchy above the physical inventory document number. You can use it to group together different physical inventory

documents that belong together organizationally.

You assign physical inventory numbers when you create and change physical inventory documents, and you can use them as an extra selection criterion for physical inventory reports. This enables you to directly display the physical inventory documents per storage location, customer, or vendor.

If you have not finished entering the complete physical inventory count, you can freeze the book inventory balance in the physical inventory document to prevent goods movements from changing the book inventory balance relevant to the physical inventory count, which would result in incorrect inventory differences. You define in Customizing for Inventory Management whether you can freeze book inventory balances in the storage location.

When entering a physical inventory count with reference to a physical inventory document that contains many items with a quantity of zero, you can set zero count automatically for all items that have not yet been counted.

In Customizing for Inventory Management, you can define the following value tolerances for posting inventory differences for a user group:

maximum amount per physical inventory document maximum amount per document item

Relevant tables:

• IKPF: Header: Physical Inventory Document
• ISEG: Physical Inventory Document Items

83) What is the use of VPRS, EK01 and Ek02? For material cost we are using VPRS why we need EK01 and EK02 ?

Ans:

VPRS is the internal price condition which is copies from material master and can not be manual procss.It is mainly used to calculate revenue sv from particular material. EK01 is for actual costing EK02 is for calculates costing for costing purpose.

84) How to stop PGI?

Ans:

We Can’t stop PGI (Post Goods Issue ), if u want to reversal u can use VL09 and then cancelled delivery to use transaction VLO2N.

85) What is Business Process Reengineering ? Explain it ?

Ans:

BPR means the existing business process how you re-engineered to get client requirements. (Line items clearing at the time of customer receipts which is not exists in the legacy)

86) How is shipping point determined?

Ans:

shipping point will be determined based on the shipping conditions, loading group and delivery plant.

87) Where do you assign Movement Type?

Ans:

we assign movement type in schedule line category. As is is related to transfer.

88) What is out put of Blue print ?

Ans:

Blue print means collecting the business requirements and mapping these with in sap R/3 if propose is not met then some other solution how to map in SAP R/3 i.e AS IS – TO BE study so the out put will be under standing the requirements and providing the solution in sap with flow charts and get the acceptance from the business team before configure the system i.e realization stage

Part 5 :

1. Which T-Code are Using for Customer master?

Ans. XDO1

2. How many tabs are showing Customers master initial screen?

Ans. 3 Tabs. General Data, Company Code and Sales data.

3. Where can we found the tax information in customer master?

Ans. General Data—– Control Data —- Tax Information

4. What is the difference between transaction data and master data?

Ans. Master Data refers to the characteristics of an object whereas transaction data refers to all the transactions that are carried out using the object. Any data which does not change so frequently in master data like configuration settings like company data, personal area etc. Any data which keeps changing so often in transactional data, like employee data.

5. A is your client; B is your client’s customer. B need X material, but X material is now out of stock, then you can solve this problem?

Ans. In this case, we are using third party process. This process uses a purchase order (Which is sent to you by vendor). Also, invoice verification is used further along the process to check that the invoices you send to your customer are the same material and quantity as that which the vendor sent to the customer (But obviously shipped directly to your customer).

6.How many company codes can you assign to a business?

Ans. One or more company code.

7.How many sales organization assign to a Company Code?

Ans. One or more.

8. How many plants are assign in a company code?

Ans. One or More.

9.Why are we creating Z reports?

Ans. SAP have provided a lot of reports in each module. However, if the standard reports do not meet the business requirement, we can develop our own reports. ABAP custom reports are called z reports because any program developed have to start with Z.

10. Who is creating Company Code?

Ans. FICO Consultant.

11. Which T-Code are using for Account Determination?

Ans. VKOA.

12. How to maintain Pricing Procedures?

Ans. In Pricing Procedures 16 steps are needed to maintain. These are Step, Counter, Condition Type, Description, From, To, Manually, Mandatory, Statistically, Print, Sub 
Total, Requirement, Alternative Condition Type, Alternative condition base value, Account Key, Accruals Key.

13. What is Alternative condition base value? Give an example.

Ans. This column indicates a formula assigned to a condition type in order to promote an alternative base value for the calculation of a value. For example, you may specify a formula that uses a subtotal of 4 from the subtotal field and then modifies it slightly by dividing it by 2 and using the resultant value as a base value for a condition type.

14. What is Alternative condition type? Give an example.

Ans. This column is used to specify that the system is to use the formula represented in this column as an alternative in finding the value of the condition type, rather than by using standard condition technique. This is may be used, for example, to calculate complex tax scenarios.

15. What is Invoice correction?

Ans. It is a sales document type(RK). This documented process a new way of processing complaints and issuing credit and debit memos. The document allows us to correct the quantity and the price for one or more faulty items on an invoice. Each invoice correction request is made in reference to a (mandatory) invoice. We cannot create one in reference to an order or quotation. Each invoice correction request contains two items for each item on the invoice. The first item is the value and quantity copied from the invoices; this appears as the credit item. The second item is the debit item, which represents the correct quantity and or value. Should you change this second debit item due to new pricing etc, the difference between the two would then be automatically passed on to billing as either a credit or debit memo.

16. How many sales document types?

Ans. Sales Document Header (VBAK), Sales Document Item (VBAP), Sales Document Schedule line (VBEP).

17. Which T-Code are using for SD and MM Integration?

Ans. OBYC.

18. Which T-Code are using For SD and FICO Integration?

Ans. VKOA.

19. What’s the process of Pricing Procedures Determination?

Ans. Sales Organization, Distribution Channel, Division, Document Pricing Procedure, Customer Pricing Procedure, Pricing Procedure, Pricing Procedure(Description), Condition Type, Condition Type(Description).

20. What is Sales organization, Distribution Channel, Division?

Ans.Sales Organization: An organizational unit sells and distributes products, negotiates term of sales, and is responsible for these truncations.

Distribution Channel: This channel through which materials or services reach customers.Typical distribution channels include Internet sale, wholesale, retail and direct sales. You can assign a distribution channel to one or more sales organisations.

Division: Product groups can be defined for a wide-ranging spectrum of products.

21. How many Plant can you assign to a Company Code?

Ans. One or More.

22. One material can exist within one or more than one plant. Is it possible?

Ans. Yes, it’s possible.

23. What is ASAP methodology?

Ans. ASAP streamlines the implementation by providing templates, methods, tools and accelerators that have been built on the success of thousands of previous SAP implementations.
This methodology divides the implementation process into 5 phases.

• Phase 1: Project Preparation.
• Phase 2: Business Blueprint.
• Phase 3: Realization.
• Phase 4: Final Preparation.
• Phase 5: Go-live and Support.

24. What is Item Category? How can we assign it?

Ans. The sales item category is one of the most important fields in the SAP sales order. It controls the sales document flow and also impacts the schedule line category. The item category of the sales order affects the delivery and finally impacts the billing process as well.
Sales Document Type, Item Category Group, Item Category Usage, Higher-Level Item, Default Item Category.

25. What is Higher Level Item Category? How it’s controlled?

Ans. Higher level item category depends upon the material type and item category of the other item. The higher level item category by looking at any linkage of items and then tracing back to the main item category.

Higher Level Item Category is the item category of the high-level item. It controls the item category of the item along sales document type, item category group, and usage.

Basically higher level item makes the functionally of how the item should behave along with material type.

26. Where do we assign Calender in the master records?

Ans. In IMG screen Global Settings

27. What is meant by condition technique: can we say it is the combination of condition types, access sequence and condition tables?

Ans. yes

28. How to utilize long material number in SD Sales BAPI?

Instead of the of ‘MATERIAL’ field, user must use ‘MATERIAL_LONG’ field

29. What to do if in case there are multiple down payment items in final billing document?

In case, a cleared down payment request is required to be cancelled then the user must perform the following steps in order to avoid doubled down payment items in the final billing document:

• The clearing should be set back via t-code FBRA
• The clearing needs to be cancelled via t-code FB08
• Finally, the down payment request can be cancelled by VF11.

30. Getting Error message FF799 while releasing SD invoice to accounting

User is required to maintain the default tax jurisdiction code in transaction OBCL

This must be at a state level, that is only first level which has to be maintained. For instance:

•   Inside t-code OBCO the tax procedure encompasses jurisdiction code structure 2 2 0 0
•   the default tax jurisdiction code should be XX00 (where XX is the code of first level)

31. How can the we use report RVKRED08?

The term ‘Period’ refers to an option visible on the initial screen for report RVKRED08 where a selection option for ‘Date of next credit check’ has been provided, in the documentation.

The default period is referred to as the starting to the end of the current month, this can also be adjusted in case the date falls outside this default period.

The option ‘Take release data into account’ permits the user to exclude all those documents which have been released manually. For Instance, incase this option is selected, all documents which were released manually will be excluded when the report is executed.

32. How can the user suppress pro forma billing document cancellation?

• There is no authorization check available for restricting the completion of a pro forma billing document.
• The ‘Complete’ field can be inactivated via modification
• In program MV60AF0C_CUA_SETZEN the internal table cua_exclude is required to be filled with ‘FERL’ in field FUNCTION.
• By performing this function, the field ‘Complete’ will be inactivated and pro forma billing documents cannot be cancelled.

33. How can the user verify the output processing status log?

Post output processing (e.g. for billing document), user can verify the output processing log in VF03 through the menu path Goto -> Header -> Output: by selecting the relevant output type and clicking on ‘Processing log’.

34. Does tool ‘Synchronize Payroll Tax Data’ update any information in the BSI TaxFactory system?

Yes. The tool will detect the mapping between SAP Tax Authorities (e.g. ‘FED’) and BSI Tax Authorities (e.g. ‘00000000’) and it automatically creates any missing mapping in the BSI Dataset which subsequently corresponds to the client of the system in which the user ran the tool. This is done when user selects to run the tool in productive mode for client-specific tables.

35. Is it possible for a material to have Two Base Prices?

Yes, by maintaining the validity period in records & the value gets triggered as per the pricing date mentioned in the transaction (Order).

36. How the price is get determine in sales order?

The price is get determine in sales based on

1. Sales are
2. Customer pricing procedure
3. Sales document
4. Pricing procedure

The pricing procedure is assigned to the combination of sales area and customer pricing procedure and document pricing procedure by using transaction code ovkk

37. Difference between Delivery and Billing?

Billing is a document which raised to the payer. It includes the amount he has to pay for the product/service he is receiving from the business.

Delivery is a document which contains the information related to the delivery of the product. Like delivery quantity, actual delivery date, packing,picking etc. Generally, delivery document can be created for the ship-to-party.

What is the Use of Requirement in Pricing?

Ans. Requirement is a field which is used to validate a condition type i.e. if certain condition is met then only the corresponding condition type will be accesses else it will not.

For Ex:  Plant is a pre-requisite to pick the Pricing while making a Sales Order, hence until or unless Plant name is inserted in SD pricing will not be picked as its a requirement.