SAP SD Most Important Questions and Answers
Question In SD, MM, PP, FI/CO which are the highest organizational units?
Answer The highest organizational units in SD, MM, PP, FI/CO are:
• SD: Sales Organization.
• MM: Plant.
• PP: Plant.
• FI: Company Code
• CO: Controlling Area.
Question What is the further Subdivision of a plant?
Answer The further subdivision of a plant are the storage locations, which allows stocks of materials to be broken down according to predefined criteria such as the location and materials planning aspects. It can also be subdivided into locations and operational areas. They are further subdivided into locations takes geographical criteria into account, operational areas reflects responsibilities for production is also a subdivision.
Question Is it possible Sales Organization sell from a plant belonging to a different company code?
Answer It is possible for a sales organization sell from a plant belonging to a different company code.
Question What is the definition of a Plant according to SAP?
Answer According to SAP a plant is a place where either material is produced or goods and services provided. Plant is classified into Business Object. In Organizational unit within Logistics, serving to subdivide an enterprise according to production, procurement, maintenance, and materials plan aspects. Coming to the Structure a plant can assume a variety of roles. As a part of maintenance plant, it includes the maintenance objects that are spatially located within this plant. The maintenance tasks that are to be performed are specified within a maintenance planning plant. As a retail or wholesale site, it makes merchandise available for distribution and sale. The plant is the organizational unit for material valuation, according to a rule. For the placement of materials in storage (stock put-away), a storage location is assigned to a plant. The storage location depends on the storage condition and the stock placement situation. The preferred shipping point for a plant is defined as the default shipping point, which depends on the shipping condition and the loading condition. The business area that is responsible for a valuation area is determined as a function of the division. As a rule, a valuation area corresponds to a plant.
Question For which the distribution channels and divisions are assigned and how many shipping points can be assigned to a plant, sales organization and if there is a warehouse management system active, where is warehouse number is assigned?
Answer The Distribution Channels and Divisions are assigned to Sales Organization. A plant can be assigned with many shipping points, coming to sales organization there will be shipping points that are assigned to that. When a warehouse management system is active it would be assigned with a Plant and Storage Location in a warehouse number.
Question What is the functionality of negative posting in billing document?
Answer Reverse and adjustment postings can also be marked as negative postings. Negative postings are used to reduce the transaction figures in G/L, customer, and vendor accounts. This allows you to give the transaction figures (following the reversal) the status they would have had without posting the reversed document and its reversal document. This type of reversal is called a negative posting.
Its nothing but an adjustment. Lets say you have creates a bill of 10 bucks and latter you realize its not correct and the billing amount should be 8 bucks. To change the billing amount you have to create a negative bill worth -2 bucks. Its a negative bill or in other words its an adjustment of credit type. Similarly debit type adjustments are also there.
Question What is mean of Rebate processing?
Answer Rebate is nothing but a special discount which is given on to specific customer on certain sales volume with in specific period of time. Rebate may given on a specific customer, if he do the targeted business within the validity periods,
OR
its for specific material and customer, if this customer does the targeted business volume for that particular material within the validity periods.
A rebate is a discount which is granted subsequently to a rebate recipient on the basis of defined sales volume within certain period.
There are three processes on rebate.
1:- Configuring Rebate
2:- Setting of rebate agreements
3:- managing rebate agreement & payments
But before the processing the rebate you need to activate the following fields
:- in Payer master record
:- Sales organization
:- Billing document type.
You have following rebate agreement types for your customer.
1:- Material rebate
2:- customer rebate
3:- customer Hierarchy rebate
4:- Material group rebate
5:- Independent of sales volume.
Question What is the difference between discount and rebate?
Answer Rebate: an incentive to be given to a customer. clubbed with qty purchased by a customer within the period specified (say one month)-conditional.
Discount doesn’t depends upon the turnover it is fixed. and can only differ from customer to customer
Question What is Returnable packaging processing means?
Answer IT is used in the process where by the business sells items to the customer. These items are packed into shipping units such as boxes and crates .Then the customer can keep the boxes and crates upto a certain period of time and then must return the item .Should the customer not have return the shipping units within specified date or have been destroyed ,then business may bill the customer for damaged goods .
The stock we deliver as special packaging materials .We kept at customer site .It can viewed in “MMBE”with indicator “V” .
Item category group is “VERP” .
General item category is “LEIH”.
“LAN” for returnable packaging pick up-(LA)
“LNN” for returnable packaging issue-(LN)
Material group =00804
“TAL” -item category for returnable packaging
Question what are the Steps in consignment processing?
Answer In consignment process, we have 4 stages.
First phase, company fill the goods at customer site, still it is the property of company, is called as Consignment fill up,(CF)
When the customer consumes the material company issues the invoice is called as consignment issue (CI)
If the customer finds that he got any material defective he returns is called as consignment return (CR)
When customer requests the company to take back the material which is not sold by the consumer, the company will pick this stock from the customer site is known as consignment pick up (cp)
Question When will you combine deliveries into one invoice in SAP SD?
Answer we will combine multiple deliveries into one invoice, when the bill to party , payment terms and billing date is same. And also when billing date, that means billing is done only once in a month for that particular customer, then you combine all deliveries of that month create invoice
Question How revenue account is determined?
Answer 1. Application
2. Chart of accounts
3. Sales Org
4. Condition type
5. Account assignment group from customer
6. Account assignment group from material
7. Account key
Previously Repeated Interview Questions
What is PGI ? What is the significance of PGI ?
What is the highest Organization element in SAP SD ?
How many Sales Organizations have you configured in your previous company ?
My customer requires to consolidate multiple deliveries. How should this scenario be configured ?
I want to configure the Customer Master for a Non-profit company which has tax-exemption certificate. How should this scenario be configured ?
Is there a limit on the number of line items in the sales order ?
Does Availability Check happen in Inquiry ? ( If not, why ? )
Does Transfer of Requirements happen in Quotation ? ( If not, why ? )
Are schedule Lines Created for an SAP Quotation ? ( If not, why ? )
What is the Transaction code to Create/Change Display Deliveries ?
What is the Transaction code used to create a Return Delivery ? ( Is it different from standard delivery ? )
What kind of organizational structures did you create during your last projects and why ?
Where would you use an SAP Return Order and SAP Credit Memo ? ( Business Scenario Differences )
How many different distribution channels and divisions did you create for your last client and why ?
Who creates the Company Code data in the Customer Master ?
Can a Customer Belong to multiple Sales Groups / Sales Offices ?
Can you give me some examples of Shipping Conditions you configured ?
What are payment terms ?
What are the different kind of Partner Functions you configured and why ?
Can a material belong to more than 1 division ?
Why are common distribution Channel maintained ?
What is the difference between Individual Requirements vs Collective Requirements in SAP ?
What is the difference between a cash sale ( CS ) and Rush Order ( RO ) ?
What is the difference between commercial invoice & Proforma Invoice ?
Can proforma Invoices be created with reference to order ?
Why would you want to create a new SAP Pricing Procedure ?
How to view the Transaction Code associated with a Program in SAP ?
What is the Difference between Consignment Special Stock and Regular Stock
What is your SAP System Landcape ?
What is the difference between Golden Client and Sandbox Client ?
Why is the Quality Server used in SAP Landscape ?
What is the difference between SAP Proforma Invoice Types F5 and F8 ?
What is Delivery Splitting in SAP ?
Can you delete a Customer Master in SAP ?
Can you split a single line item into multiple line items manually ?
What are the advantages of SAP Milestone Billing vs SAP Periodic Billing ?
What is the difference between a Rush order and a Cash Sale ?
What is the SAP item category for Cash Sales ?
What is Scrap Sales in SAP ?
What is Contract to Order ?
What is the use of “Requirement” field in SAP Pricing ?
What is Intercompany Stock Transfer Order ( STO ) ?
What are the major configuration settings around an STO ?
How to do STO in SD ?
How to do STO in MM ?
What is a Horizon in SAP Credit Management ?
Can billing be done in SAP without PGI ?
Can Sales order, delivery and billing be done for an item quantity of Zero ?
What is third party sales ? What settings are required to trigger this ?
What is Individual Purchase Order ? What settings are required to trigger this ?
What is consignment process in SAP ?
Can a Sales order have more than 1 pricing procedure associated with it ?
What kind of SD-FI interface configuration have you done ?
How do I perform Credit Management without Open Orders ?
Can a Plant be associated with multiple company codes in SAP ?
Give me some examples of some of the fields you have used in SAP Condition Technique ?
What is the difference between Simple & Automatic Credit Check ?
What is the difference between Static & Dynamic Credit Check ?
What is Credit Exposure ?
Give some examples of Data Migration Techniques other than SAP LSMW ?
How to configure FREE Goods with SAP Consignments ?
Can you have 2 pricing procedures in a single SAP Sales Order ?
Can a pricing procedure in a sales document be different from the pricing procedure in a billing document ?
What is the purpose of SAP Delivery Item Category ?
Can a Sales Org belong to 2 different company codes ?
What are Copy Control Requirement Routines ?
What is the difference between SAP Material Groups and Product Hierarchy ?
What is a movement type ? Give some examples of the movement types you have used ?
What is the movemen type used in standard delivery/ movement type used in consignment issue / 3rd party drop ship ?
When trying to create an order the pricing procedure is not determined. How do you troubleshoot it ?
What is the use of common distrubution channel and common division ?
When a quotation is created, I want somebody to approve this quotation before further actions can be done on it. How do you configure this scenario ?
How would you specify if a pricing condition type is discount or tax or freight ?
How are invoices combined ?
What is invoice splitting ?
What is factory calendar ?
Want To More About SAP SD Online Training Contact @ Big Classes
Question In SD, MM, PP, FI/CO which are the highest organizational units?
Answer The highest organizational units in SD, MM, PP, FI/CO are:
• SD: Sales Organization.
• MM: Plant.
• PP: Plant.
• FI: Company Code
• CO: Controlling Area.
Question What is the further Subdivision of a plant?
Answer The further subdivision of a plant are the storage locations, which allows stocks of materials to be broken down according to predefined criteria such as the location and materials planning aspects. It can also be subdivided into locations and operational areas. They are further subdivided into locations takes geographical criteria into account, operational areas reflects responsibilities for production is also a subdivision.
Question Is it possible Sales Organization sell from a plant belonging to a different company code?
Answer It is possible for a sales organization sell from a plant belonging to a different company code.
Question What is the definition of a Plant according to SAP?
Answer According to SAP a plant is a place where either material is produced or goods and services provided. Plant is classified into Business Object. In Organizational unit within Logistics, serving to subdivide an enterprise according to production, procurement, maintenance, and materials plan aspects. Coming to the Structure a plant can assume a variety of roles. As a part of maintenance plant, it includes the maintenance objects that are spatially located within this plant. The maintenance tasks that are to be performed are specified within a maintenance planning plant. As a retail or wholesale site, it makes merchandise available for distribution and sale. The plant is the organizational unit for material valuation, according to a rule. For the placement of materials in storage (stock put-away), a storage location is assigned to a plant. The storage location depends on the storage condition and the stock placement situation. The preferred shipping point for a plant is defined as the default shipping point, which depends on the shipping condition and the loading condition. The business area that is responsible for a valuation area is determined as a function of the division. As a rule, a valuation area corresponds to a plant.
Question For which the distribution channels and divisions are assigned and how many shipping points can be assigned to a plant, sales organization and if there is a warehouse management system active, where is warehouse number is assigned?
Answer The Distribution Channels and Divisions are assigned to Sales Organization. A plant can be assigned with many shipping points, coming to sales organization there will be shipping points that are assigned to that. When a warehouse management system is active it would be assigned with a Plant and Storage Location in a warehouse number.
Question What is the functionality of negative posting in billing document?
Answer Reverse and adjustment postings can also be marked as negative postings. Negative postings are used to reduce the transaction figures in G/L, customer, and vendor accounts. This allows you to give the transaction figures (following the reversal) the status they would have had without posting the reversed document and its reversal document. This type of reversal is called a negative posting.
Its nothing but an adjustment. Lets say you have creates a bill of 10 bucks and latter you realize its not correct and the billing amount should be 8 bucks. To change the billing amount you have to create a negative bill worth -2 bucks. Its a negative bill or in other words its an adjustment of credit type. Similarly debit type adjustments are also there.
Question What is mean of Rebate processing?
Answer Rebate is nothing but a special discount which is given on to specific customer on certain sales volume with in specific period of time. Rebate may given on a specific customer, if he do the targeted business within the validity periods,
OR
its for specific material and customer, if this customer does the targeted business volume for that particular material within the validity periods.
A rebate is a discount which is granted subsequently to a rebate recipient on the basis of defined sales volume within certain period.
There are three processes on rebate.
1:- Configuring Rebate
2:- Setting of rebate agreements
3:- managing rebate agreement & payments
But before the processing the rebate you need to activate the following fields
:- in Payer master record
:- Sales organization
:- Billing document type.
You have following rebate agreement types for your customer.
1:- Material rebate
2:- customer rebate
3:- customer Hierarchy rebate
4:- Material group rebate
5:- Independent of sales volume.
Question What is the difference between discount and rebate?
Answer Rebate: an incentive to be given to a customer. clubbed with qty purchased by a customer within the period specified (say one month)-conditional.
Discount doesn’t depends upon the turnover it is fixed. and can only differ from customer to customer
Question What is Returnable packaging processing means?
Answer IT is used in the process where by the business sells items to the customer. These items are packed into shipping units such as boxes and crates .Then the customer can keep the boxes and crates upto a certain period of time and then must return the item .Should the customer not have return the shipping units within specified date or have been destroyed ,then business may bill the customer for damaged goods .
The stock we deliver as special packaging materials .We kept at customer site .It can viewed in “MMBE”with indicator “V” .
Item category group is “VERP” .
General item category is “LEIH”.
“LAN” for returnable packaging pick up-(LA)
“LNN” for returnable packaging issue-(LN)
Material group =00804
“TAL” -item category for returnable packaging
Question what are the Steps in consignment processing?
Answer In consignment process, we have 4 stages.
First phase, company fill the goods at customer site, still it is the property of company, is called as Consignment fill up,(CF)
When the customer consumes the material company issues the invoice is called as consignment issue (CI)
If the customer finds that he got any material defective he returns is called as consignment return (CR)
When customer requests the company to take back the material which is not sold by the consumer, the company will pick this stock from the customer site is known as consignment pick up (cp)
Question When will you combine deliveries into one invoice in SAP SD?
Answer we will combine multiple deliveries into one invoice, when the bill to party , payment terms and billing date is same. And also when billing date, that means billing is done only once in a month for that particular customer, then you combine all deliveries of that month create invoice
Question How revenue account is determined?
Answer 1. Application
2. Chart of accounts
3. Sales Org
4. Condition type
5. Account assignment group from customer
6. Account assignment group from material
7. Account key
Previously Repeated Interview Questions
What is PGI ? What is the significance of PGI ?
What is the highest Organization element in SAP SD ?
How many Sales Organizations have you configured in your previous company ?
My customer requires to consolidate multiple deliveries. How should this scenario be configured ?
I want to configure the Customer Master for a Non-profit company which has tax-exemption certificate. How should this scenario be configured ?
Is there a limit on the number of line items in the sales order ?
Does Availability Check happen in Inquiry ? ( If not, why ? )
Does Transfer of Requirements happen in Quotation ? ( If not, why ? )
Are schedule Lines Created for an SAP Quotation ? ( If not, why ? )
What is the Transaction code to Create/Change Display Deliveries ?
What is the Transaction code used to create a Return Delivery ? ( Is it different from standard delivery ? )
What kind of organizational structures did you create during your last projects and why ?
Where would you use an SAP Return Order and SAP Credit Memo ? ( Business Scenario Differences )
How many different distribution channels and divisions did you create for your last client and why ?
Who creates the Company Code data in the Customer Master ?
Can a Customer Belong to multiple Sales Groups / Sales Offices ?
Can you give me some examples of Shipping Conditions you configured ?
What are payment terms ?
What are the different kind of Partner Functions you configured and why ?
Can a material belong to more than 1 division ?
Why are common distribution Channel maintained ?
What is the difference between Individual Requirements vs Collective Requirements in SAP ?
What is the difference between a cash sale ( CS ) and Rush Order ( RO ) ?
What is the difference between commercial invoice & Proforma Invoice ?
Can proforma Invoices be created with reference to order ?
Why would you want to create a new SAP Pricing Procedure ?
How to view the Transaction Code associated with a Program in SAP ?
What is the Difference between Consignment Special Stock and Regular Stock
What is your SAP System Landcape ?
What is the difference between Golden Client and Sandbox Client ?
Why is the Quality Server used in SAP Landscape ?
What is the difference between SAP Proforma Invoice Types F5 and F8 ?
What is Delivery Splitting in SAP ?
Can you delete a Customer Master in SAP ?
Can you split a single line item into multiple line items manually ?
What are the advantages of SAP Milestone Billing vs SAP Periodic Billing ?
What is the difference between a Rush order and a Cash Sale ?
What is the SAP item category for Cash Sales ?
What is Scrap Sales in SAP ?
What is Contract to Order ?
What is the use of “Requirement” field in SAP Pricing ?
What is Intercompany Stock Transfer Order ( STO ) ?
What are the major configuration settings around an STO ?
How to do STO in SD ?
How to do STO in MM ?
What is a Horizon in SAP Credit Management ?
Can billing be done in SAP without PGI ?
Can Sales order, delivery and billing be done for an item quantity of Zero ?
What is third party sales ? What settings are required to trigger this ?
What is Individual Purchase Order ? What settings are required to trigger this ?
What is consignment process in SAP ?
Can a Sales order have more than 1 pricing procedure associated with it ?
What kind of SD-FI interface configuration have you done ?
How do I perform Credit Management without Open Orders ?
Can a Plant be associated with multiple company codes in SAP ?
Give me some examples of some of the fields you have used in SAP Condition Technique ?
What is the difference between Simple & Automatic Credit Check ?
What is the difference between Static & Dynamic Credit Check ?
What is Credit Exposure ?
Give some examples of Data Migration Techniques other than SAP LSMW ?
How to configure FREE Goods with SAP Consignments ?
Can you have 2 pricing procedures in a single SAP Sales Order ?
Can a pricing procedure in a sales document be different from the pricing procedure in a billing document ?
What is the purpose of SAP Delivery Item Category ?
Can a Sales Org belong to 2 different company codes ?
What are Copy Control Requirement Routines ?
What is the difference between SAP Material Groups and Product Hierarchy ?
What is a movement type ? Give some examples of the movement types you have used ?
What is the movemen type used in standard delivery/ movement type used in consignment issue / 3rd party drop ship ?
When trying to create an order the pricing procedure is not determined. How do you troubleshoot it ?
What is the use of common distrubution channel and common division ?
When a quotation is created, I want somebody to approve this quotation before further actions can be done on it. How do you configure this scenario ?
How would you specify if a pricing condition type is discount or tax or freight ?
How are invoices combined ?
What is invoice splitting ?
What is factory calendar ?
Want To More About SAP SD Online Training Contact @ Big Classes
