NAME:_______________________________

SD Mock Interview
Q1. 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.

Q2. 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.

Q3. What is Sales area, Distribution channel and division in SAP Sales and
Distribution?
Ans:
channel tells the medium by which products and services are distributed by an organization to
itsDistribution
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.
Q4. 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.
Q5. Can you do delivery without shipping point?

Ans: No, shipping point is required to perform goods delivery.

Q6. Is it possible to create invoices without delivery?
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Ans: No, invoice is not possible without delivery.

Q7. 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.

Q8. 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.

Q9. 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
Q10. 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.

Q11. 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 Master Record

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System
Sold-to party (SP)
Ship-to party (SH)

Customer
Customer (CU) Bill-to party (BP) Customer master record
number

Payer (PY)

Forwading agent
Vendor (V) Vendor number Vendor master record
(fwdg agent)
Employee
Human resources responsible (ER) Personnel
Sales personnel (SP) Personnel master record
(HR) number

Contact Person Contact partner (created in customer master recors, no

Contact person (CP)
(CP) number master record of its own)
 

Q12. What are the different Customer account groups that you can create in SAP SD?
Ans:

 Domestic customers
 Export Customers
 One Time Customers

Q13. 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

Q14. 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.
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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.

Q15. 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

Q16. 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

Q17. What is an inquiry under presales activity? How to create a new inquiry?
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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

Q18. 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

Q19. 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.

Q20. 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

 
Q21. Is it possible to process outbound delivery without a shipping point?
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Ans: No

Q22. 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.

Q23. 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.

Q24. What are different sales document in SAP system? How to create a sales
document?Ans:

 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
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Q25. In SAP Sales process, a standard item function is same as function of free
or charge item or text item?
Ans: No

Q26. 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

Q27. 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

Q27. 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.

Q28. 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.
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Q29. 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.

Q30. 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

 
Q31. 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.

Q32. 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.

Q33. 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.
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Q34. 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.

Q35. 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.

Q36. 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.

Q37. 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
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UTX2 Country tax

UTX3 City tax
 

Q38. 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.

Q39. Standard SAP system includes below discount types −

Ans:

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
Q39. 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.

Q40. What is the use of product proposals in SAP SD module?

NAME:_______________________________

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.

 
Q41. 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.
Q42. 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
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standard system, Schedule lines can be created with the scheduling agreement or you can also
create these at later stage.

Q43. 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

 
 
 
 
 
Q44. 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.

Q45. What are different type of outline agreements?

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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.

 
Q46. 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

Q47. 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
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Q48. 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)

Q49. 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.

Q50. Which organizational element is central in shipping? Give a definition of it.

Ans: Shipping Point: Organizational unit at a fixed location that carries out shipping activities.
A shipping point could, for example, be a company's mail department or a plant's rail depot.
Each delivery is processed by only one shipping point.