Advanced SAP SD Interview Questions and Answers- webbopedia

Here we have mentioned most frequently asked SAP SD Interview Questions and Answers specially for freshers and experienced.

1. What is SAP SD? What are the primary functions of Sales and Distribution?

Ans:

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?

Ans:

The organizational structure in sales and distribution is
• Sales Organization
• Distribution Channel
• Division
• Sales Office
• Sales Group

3. Explain what is the difference between milestone and periodic billing?

Ans:

• 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?

Ans:

Shipping point is determined by,
Shipping Conditions + Loading Group + Delivery Plant = Shipping Point

5. Explain how you can assign distribution channel to Sales Organization?

Ans:

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?

Ans:

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?

Ans:

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?

Ans:

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?

Ans:

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?

Ans:

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?

Ans:

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?

Ans:

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?

Ans:

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?

Ans:

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?

Ans:

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?

Ans:

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)?

Ans:

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?

Ans:

• 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?

Ans:

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?

Ans:

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

21. 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.

22. What are the primary functions of Sales and Distribution?

Ans:

23. 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.

24. 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

25. 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.

26. 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

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

Ans:

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

Ans:

29. Explain what is Proforma Invoice and what are the types of it?

Ans:

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

30. List out the five features you can control for the sale document type?

Ans:

For sale document type the five features you can control is
• Text
• Partner
• Pricing
• Taxes
• Output
• Delivery

31. Explain what is the difference between milestone and periodic billing?

Ans:

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

32. Explain how shipping point is determined?

Ans:

Shipping point is determined by,
Shipping Conditions + Loading Group + Delivery Plant = Shipping Point

33. 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.

34. 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

35. 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)

36. 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

37. What are different type of outline agreements?

Ans:

Outline agreement is of following two types.
Contract
Scheduling Agreement

38. 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.

39. Explain how you can assign distribution channel to Sales Organization?

Ans:

40. 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.

41. 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.

42. Some materials have been blocked for procurement and production. Even though deletion flag is set for a material/plant level, the order can be still entered ( with a warning message). Is there a way to block such transactions for a material flagged for deletion?

Ans:

Sales Status field in the sales organization view of the material master may be used to block any transaction for the material.

43. We can define our own exchange rate types and use them instead of the defaulted types, ‘M’, ‘B’ and ‘G’. How can we overwrite default types in SD?

Ans:

Exchange rate gets copied from the customer master record. Exchange rate types are to be maintained for the customer in the sales screen of the customer master record. Shipping

44. The PL00 condition is fine in delivery. But when we try to print to either the screen or printer, an error V1032 occurs. Why?

Ans:

In order to use the Packing list PL00 (packing slip in delivery) you must do ‘Packing’ in the delivery note (edit->packing)

45. we have to enter a shipping point while creating a delivery. Is it possible to create delivery without shipping points?

Ans:

When you are releasing a sales order, choose Sales document -> Subsequent functions-> Create delivery, then the shipping point will be brought in from the sales order. In all other scenarios you have to key in the shipping point. The above described scenario will only work if all items on the sales order are to be shipped from the same shipping point.

46. SAP allows a non-inventory item and an inventory item to be in the same document till delivery but splits at the time of creation of billing document. Can we combine a non-inventory item with an inventory item in one invoice? Can we treat it as a value item in sales order so that it is priced and then make it as a text item in delivery documents so that it appears in the same invoice and does not split?

Ans:

Make the non-stock material deliverable, but not pickable. Both items will carry into the delivery, and therefore appear on the same invoice.
Change the copy rule for orders->invoices and deliveries->invoices to specify that invoice combination is permitted. However note that for system to create combined invoices, PO number, payment terms, sales organization, and distribution channel must be identical. Else undesirable combinations may be created by the system.

47. It is impossible to price at the material level (matnr) , when a material has a pricing reference (mvke-pmatn) set up against it in the master data. Pricing always look for the pref, even if a price is set up against the material and not the pref. How can we price by material and pref?

Ans:

The field used to look up at the price is defined in Access sequence. You may find a step with PMATN as material number. If you insert a step with MATNR then the system will first look for the material, if not found (use the exclusion tick box) it will look for the pref.

48. We generated a new condition table. Assigned the condition to access sequence. Created a condition record. Access sequence is assigned to the output type. But when we create a billing document, output screen comes up blank for the output type. When we look up Determination Analysis, we get an error “Note 524 Access not made (Initialized Field)”. What else is required to be done?

Ans:

Assign output determination procedure to the header of the document and the output type.

49. How can we set up to have the VAT# be accepted in the Ship-To Master File Data Control screen?

Ans:

IMG->Fin. Acct.>AR and AP ->Customer acct>Master Record -> Prepare to Create Customer-> Define Acct. Group.

50. We want to explode Bill of Material automatically at time of Order entry and explode an Equipment BOM in the sales order. What are the setting required?

Ans:

Use an item category that is configured for bills of material for having a sales BOM to explode automatically.
Standard SAP item categories are :
TAQ – Pricing and inventory control take place at the BOM header level
TAP – Pricing and inventory control take place at the BOM item level
These can be automatically derived using the item category groups ERLA and LUMF, respectively.

51. How can we make the Customer Group 1 (or 2, 3, 4, 5) a mandatory field?

Ans:

Logistic General-> Logistics Basic Data: Business Partners -> Customers -> Control -> Define account groups and field selection for customer
Choose Customer Acct. GR. (double-click). -> Field Status: Sales data (double click) -> sales (double click) .Check the radio button against Customer Gr as REQ. ENTRY. Save the settings to make customer GR entry mandatory .

52. Is there an user exit to copy the data into planning table?

Ans:

Use user exit MCP20001 and include ZXSOPU01.

53. We get a report screen: “Goods issue: Problem Log” during the delivery process when activating Post Goods Issue button. We want to include our own error message to this list if the selected batch is not on a customer defined table. What is the best way?

Ans:

Try User exit – USEREXIT_SAVE_DOCUMENT_PREPARE Difference between Condition Type
Please explain the difference between Ek01 ( Actual Cost) and EK02 Calculated Cost.
These are the condition type that will display the results of the unit costing for certain type of sales document.
EK01 :
If you use this condition type, the result of unit costing is issued to the first position on the conditions screen for the item. The value can be used as a basis for price determination.
EK02:
If you use this condition type, the result of unit costing is simply a statistical value which you can compare with the price.
Please note the following points :
1) The condition type must have condition category ‘Q’ (costing).
2) The condition type must agree with the condition type defined for unit costing in the pricing procedure.

54. 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.

55. 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.

56. 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.

57. 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.

58. Can you do delivery without shipping point?

Ans:

No, shipping point is required to perform goods delivery.

59. Is it possible to create invoices without delivery?

Ans:

No, invoice is not possible without delivery.

60. 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.

61. 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.

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

Ans:

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

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

Ans:

64. 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 −

Partner Type	Partner Function	Entry from System	Master Record
Customer (CU)	Sold-to party (SP) Ship-to party (SH) Bill-to party (BP) Payer (PY)	Customer number	Customer master record
Vendor (V)	Forwading agent (fwdg agent)	Vendor number	Vendor master record
Human resources (HR)	Employee responsible (ER) Sales personnel (SP)	Personnel number	Personnel master record
Contact Person (CP)	Contact person (CP)	Contact partner number	(created in customer master recors, no master record of its own)

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

Ans:

Domestic customers
Export Customers
One Time Customers

66. 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

67. 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.

68. 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

69. 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

70. 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

71. 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

72. 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.

73. 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

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

Ans:

75. 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.

76. 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.

77. 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

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

Ans:

79. 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

80. 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

81. 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.

82. 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.

83. 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.

84. How to find Copy Controls in SAP system?

Ans:

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

85. 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.

86. 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.

87. 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.

88. 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.

89. 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.

90. 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.

91. What are the predefined condition types in SAP SD system?

Ans:

Condition Type	Desccription
PR00	price
K004	Material discount
K005	Customer-specific material discount
K007	Customer discount
K020	Price group discount
KF00	Freight surcharge (by item)
UTX1	State tax
UTX2	Country tax
UTX3	City tax

92. 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 −

Discount (Key)	Kind of discount
Customer (K007)	Percentage
Material (K004)	Absolute
Price group (K020)	Percentage
Material group (K029)	Absolute discount by weight
Customer/material (K005)	Absolute
Customer/material group (K030)	Percentage
Price group/material (K032)	Absolute
Price group/material group(K030)	Percentage
Rebate processing (BO01)	Group rebate (%)
Rebate Processing (BO02)	Material rebate (fixed)
Rebate processing(BO03)	Customer rebate(%)
Inter-company processing (P101)	Intercompany discount (fixed)
Inter-company billing (P102)	Intercompany discount (%)
Invoice lists (RL00)	Factoring discount
Invoice lists (MW15)	Factoring discount tax

93. 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.

94. 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.

95. 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.

96. 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.

97. 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

98. 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.

99. What are different type of outline agreements?

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

100. 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

101. 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

102. 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)

103. 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.