25+ Tricky SAP AFS Interview Questions with SMART ANSWERS
SAP AFS Interview Questions and Answers

25+ Tricky SAP AFS Interview Questions with SMART ANSWERS

Last updated on 04th Jul 2020, Blog, Interview Questions

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SAP Apparel and Footwear (SAP AFS) is the SAP e-business solution for the apparel and footwear industry. SAP AFS was developed in collaboration with renowned industry leaders to address the particular requirements of the apparel and footwear industry.

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 Groupb

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.
  1. Configuration steps for SAP SD
  1. 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) Which T-Code are Using for Customer master?

Ans:

XDO1

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

Ans:

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

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

Ans:

General Data—– Control Data —- Tax Information

14) 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.

15) 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).

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

Ans:

One or more company code.

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

Ans:

One or more.

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

Ans:

One or More.

19) 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.

20) Who is creating Company Code?

Ans:

FICO Consultant.

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

    Ans:

    VKOA.

    22) 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.

    23) 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.

    24) 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.

    25) 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.

    26) How many sales document types?

    Ans:

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

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

    Ans:

    OBYC.

    28) Which T-Code are using For SD and FICO Integration?

    Ans:

    VKOA.

    29) 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).

    30) 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.
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    31) Can you explain the organisational structure used in sales and distribution?

    Ans:

    The organisational structure in sales and distribution can be described as below:

    • Sales Organisation
    • Distribution Channel
    • Division
    • Sales Office
    • Sales Group

    32) Explain the process of creating a scheduling agreement.

    Ans:

    For creating schedule management, you need to follow the steps below:

    • Logistics – Material Management – Purchasing – Outline Agreement – Schedule Agreement – Create – Vendor.

    33) Can you point out how many types of sales document exist?

    Ans:

    There are three distinct types of sales documents which are as under:

    • Sales Document Header (VBAK)
    • Sales Document Item (VBAP)
    • Sales Document Schedule line (VBEP)

    34) Can you explain the five features which can be used to control the sale document type?

    Ans:

    The features you can use to control a sale document type are listed below:

    • Partner
    • Delivery
    • Text
    • Pricing
    • Taxes
    • Output

    35) Can you explain the primary purpose for maintaining the master data?

    Ans:

    The main purpose of master data is for maintaining total customer data and records such as order, delivery, and billing along with customer payments. Master data is essential for ensuring the entire process goes well. For instance, it’s not possible to create a sales order without information such as customer master data, material master data, and condition master data.  

    36) 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.

    37)  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.

    38) 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.

    39) 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.

    40) Can you do delivery without shipping point?

    Ans:

    No, shipping point is required to perform goods delivery.

    41) Is it possible to create invoices without delivery?

    Ans:

    No, invoice is not possible without delivery.

    42) 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.

    43) 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.

    44) 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.

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

    Ans:

    • Domestic customers
    • Export Customers
    • One Time Customers

    46) 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

    47) 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.

    48) 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

    49) 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.
    1. VA02 − Edit a Sales Order
    2. VA03 − Display a Sales Order
    3. T-Code − VA01 Create a Sales Order

    50) 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 → CreatT-Code − VA11
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    51) 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

    52) 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.

    53) 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

    54) 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.

    55) What are different type of outline agreements?

    Ans:

    Outline agreement is of following two types.

    • Contract
    • Scheduling Agreement
    1. 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

    1. 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.

    56) Define Sales Order Processing under SAP SD.

    Ans:

    Sales order processing pertains to functions that are related to the complete sales pipeline of an organization or business. These functions include:

    • Checking the availability of products to be purchased
    • Finding incomplete data and the status of the sales transaction
    • Calculating pricing and taxes
    • Scheduling deliveries and printing purchase documents

    57) Describe the structure of a Sales Order.

    Ans:

    • Inquiries from customers consist of one or more items that contain the quantity of products in the order.
    • Quantity is divided into business lines, and they further contain various sales parameters.
    • Items are combined in a hierarchy, and therefore it becomes possible to differentiate between batches.
    • All valid conditions on items are mentioned in item conditions. These conditions can be valid for the entire sales order.
    • T-codes for creating, editing, or displaying existing sales orders are given below:
      • VA02 – To edit a sales order
      • VA03 – To display a sales order
      • VA01 – To create a sales order

    58) What do you mean by Inquiry under Pre-sales Activity? How to create a new Inquiry?

    Ans:

    Although not a legal document, inquiry under the pre-sales activity is used to record information about delivery or services to customers. This information is mostly related to materials and quality of goods. Users can use the T-code ‘VA11’ to create a new inquiry.

    59) How can you create a Quotation?

    Ans:

    Unlike inquiries, quotations are legal documents sent to customers. Quotations contain information about the delivery of goods and services. To create a quotation, use the transaction code ‘VA21

    60) 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

    61) 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

    62) 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

    63) 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

    64) 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

    65) 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

    66) 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.

    67) Difference between Delivery and Billing?

    Ans:

    • Billing is a document which raised to the payer. It includes the amount he has to pay for the product/service he is receiving from the business.
    • Delivery is a document which contains the information related to the delivery of the product. Like delivery quantity, actual delivery date, packing,picking etc. Generally, delivery document can be created for the ship-to-party.

    68) How the price is get determine in sales order?

    Ans:

    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

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

    Ans:

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

    70) How can the user suppress pro forma billing document cancellation?

    Ans:

    • 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.
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    71) 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.

    72) 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)

    73) 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

    74) 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

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