SAP SD FAQ's

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.

Top 20 SAP SD Interview Questions & Answers

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 Group

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
1. What is the purpose of text determination, account determination,
partner determination, output determination, and storage location
determination?
Answer1:
Text determination:
For transferring information from material or customer to order / delivery or
invoice (and anything in between)
Account determination:
For transferring financial and costing information to proper financial docs
Partner determination:
For determine who is legally responsible for A/c, who the goods are going to
and whatever else you waana drive through this functionality.
Output determination:
What kind output does a sales/delivery/billing document create and who gets
it, where? For example A partner might get an EDI notification for a sales
order just confirmed, whereas a financial/leasing company gets the invoice!
Answer2:
(a) Text Determination: Any Texts in Material Master/Material
Determination/Order/Delivery , etc is meant to convey messages to the
subsequent documents for compliance. e.g. “Give Top Priority” message
mentioned in Order is meant for Production Dept.
(b) Account Determination: is integration between Finance and SD. The A/P
along with Account Keys need to be allocated accordingly with combination of
Account Determination Group for Customer and Material if required. (c)
Partner Determination: To identify which type of Partner it is so that if required
for same Customer different Partner Functions may be required (Ex. Only One
Sold To Party per Customer. More than One Ship to Party / Bill to Party /
Payer possible. Accordingly different Masters will have to be created. Useful
for Despatch of Material in case of Ship to Party, sending Bill in case of Bill to
Party and payment follow-up / Dunning in case of Payer.
(d) Output Determination: What type of Output (Fax/Mail, etc) is required,
where and in what Format (ABAP Customization may be required in some
cases especially Invoices).
(e) Storage Location Determination: depends on Plant, Shipping Point and
Storage Conditions
2. What are the five imp fields to be maintained in account
determination?
Account Determination:
Sales View, Sales Organisation, Distribution Chanel, Chart of Accounts,
Account Assignment Group for Customer and Material and Account Keys.

3. How to create excise invoice and what is it

4. What is meant by transfer of data from legacy code to sap Legacy
Code?
Answer1:
It should be legacy data to SAP. What it means is you want to transfer all
customer and materials and all other information from Older (legacy system)
to new SAP system. You can do it using many tools, most noticeably MDMs.
Answer2:
Before installation of SAP, Data maintained by Company is called Legacy
Data. At the time of installation, it is required to transfer Data from Legacy to
SAP like Masters (Material/Customer, etc). It can be done in various ways like
BDC, LSMW, etc.
5. What do you do really in pricing determination and what are the main
differences between pricing procedures?
Answer1:
Pricing is determined by combination of Sales Organisation, Distribution
Channel, Division, Customer Pricing Procedure and Document Pricing
Procedure.
Answer2:
We determine how the prices are calculated, taking into account sales
area(sales org, distribution channel, division), document type and
customer(generally sold-to-party).
The main differences between pricing procedures would be the differences as
we mentioned above, from the point of view of field entries. Coming to the
output and the procedure, suppose the condition types used will be different
and hence the following whole procedure. One pricing procedure
determination to the others, which data control these differences
6. What type of reports generally a support consultant maintains and
report
Depends on Customer requirements.
7. What are interfaces used generally an indian organisation which is in
retail business and which is in banking business and oil business.
8. What is the purpose of shipping point determination not menu path
So that Shipping Point is determined automatically once the settings for the
same are done.
9. What and where types of copy controls we change
Copy Control: is basically meant so that Data is copied from preceding
Document to subsequent one. What subsequent Document is required is to
some extent determined by Customer Requirements as well as Document
Types. (Ex.) In general case of Standard Order, it will be Copy Control (Order
to Delivery) from OR to LF.
10. How to and where to maintain copy controls
Check for yourself in IMG (Sales Document types and Delivery Document
Types)
11. What is purpose of maintaining common distribution channels and
common divisions?
Common Distribution Channel and Common Division are maintained so that if
any master data like customer or material maintained with respect to one
distribution channel can be used in other DCh. It prevents the multiplication of
master records.
Eg: A customer is created for say sales area 1000/20/00 then the same
customer can be used in sales area 1000/30/00 if we maintain 20 as common
distribution channel. Hence no need for extending the customers…the same
for materials also.
12. What is the difference between the Availability check 01 (Daily
requirement) and 02 (Individual Requirement) in material master?
01 and 02 are the checking group. Availability check is carried out with the
help of these checking group and checking rule. Checking group 01 and 02
are maintained on the material master.
01 – Individual requirement -For this system generates transfers the
requirement for each order to the MRP .So that MM can either produce or
procure.
02- Collective requirement.-In this all the requirements in a day or in a week
are processed at a time. System stores all req and passes on to the MRP in
MRP run. In this system performance is high however you can not do the
backorder processing whereas in other you can do.
13. What is a Division in SAP SD?
A division is a product group that can be defined for a wide range of products
or services. Customer specific arrangements can also be made in a division.
A sales organization can have many divisions.
14. What is a sales office in SAP SD?
A sales office is a geographically located unit of a sales organization.
15. What is a shipping point and loading points in SAP SD?
Shipping points are the points from where deliveries are initiated. One
shipping point can be assigned to more than one store or plant. A Loading
point is just a subdivision of a shipping point and manually entered into the
header data of the delivery.

16. What is the transaction code for creating a customer in SAP SD?
VD01, VA01, XD01
17. What are the basic elements of a customer master record?
The sold to party, the ship to party, bill to party, and the payer record.
18. What are inter company customers?
These customers represent the sales customers within the same client but
between different company codes.
19. What is a one time customer?
This is a general customer that is created for those customers for which you
do not want to create separate records. This customer can be reused.
20. How does the SAP system knows which fields to turn on and off
when you create a customer master record?
Using the account group which is assigned to the customer.
21. Who defines the account groups?
Normally these are defined by the finance team.
22. Who is a payer in the customer master record?
Payer is the individual or company who will settle the invoices for products or
services sold.
23. Can you give me some tables in SAP SD for customer master?
Some of the tables are KNVV, RF02D, KNA1 etc
24. What are some of the examples of Global settings?
Currencies, countries etc. This data is application independent.
25. What is a sales organization?
Sales organization is an organizational unit that sells and distributes products
and negotiates terms of sales and is responsible for all the transactions
involved with a sale
26. What is the purpose of material master data?
Master data responsible for representing all information related to products or
services that a company produces or sell.
27. What is the transaction code for creating a material/article in SAP?
MM41 for creating article in SAP IS Retail and MM01 in SAP Industry solution
for creating a material.
28. How do you extend a material, which transaction?
MM01
29. What are some of the views in a material master?
Basic data, additional basic data, Accounting views, MRP views, Purchasing
views, Storage views, forecasting views, sales views and in IS Retail there is
also a Listing view and POS view.
30. What is a base unit of measure in material master?
This is a unit of measure used as a basis for all the transactions, all
movements of quantities will be converted to that base unit of measure which
is specific to an article.
31. Can you have specific customer material information entered in
SAP?
Yes, VD51 is the transaction or inside VA02 also you can add customer
material information records.
32. What is a customer group? Give me some examples.
Customer group is 2 digit numbers that is configured within IMG and allows
logical grouping of customers. For example you may want to group
International customers, Domestic customers or military customers
separately.
33. What are some of the tables in SAP SD?
VBAK – Order header
VBAP – Order Item
VBEP – Order schedule line
LIKP – Delivery Header
LIPS – Delivery Item
VBPA – Partners
VBFA – Document flow
34. How would you find which table is being used in a particular field?
Bring your cursor to the field in a transaction and press F1 and then technical
info.
35. How would you find all the tables in SAP?
SE16 (or) SE11.

36. What are some of the material master data tables?

MARA – Material highest level data
MBEW – Data referring to accounting
MVKE – Data referring to sales
MARC – Data at the plant level
WLK1 – Listing information
MARD – Data storage locations