25+ Tricky SAP SD Interview Questions with SMART ANSWERS

Last updated on 03rd Jul 2020, Blog, Interview Questions

The soaring demand for logistics management has led SAP to come up with several modules that streamline sales and distribution. Companies are in pursuit of specialists who can seamlessly deal with SAP Logistics. One such SAP Logistics module is SAP SD. To help individuals crack SAP SD job interviews, we have prepared a set of most frequently-asked interview questions on this topic. This page contains a list of top 20 on-demand SAP SD interview questions. Learn SAP S/4HANA Sales and Distribution from Intellipaat SAP SD Training Certification Courseto fast-track your career now.

1) 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.

2) 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.

3) 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.

4) 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.

5) Can you do delivery without shipping point?

Ans:

No, shipping point is required to perform goods delivery.

6) Is it possible to create invoices without delivery?

Ans:

No, invoice is not possible without delivery.

7) 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.

8) 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.

9) 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

10) 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.

11) What are different partner type functions available in SAP SD?

Ans:Below partner types are Customer, Vendor, Personnel, Contact Person and common partner functions as per these partner types are −

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

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

Ans:

• Domestic customers
• Export Customers
• One Time Customers

13) 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

14) 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.

15) 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

16) 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

17) What is an inquiry under presales activity? How to create a new inquiry?

Ans:

An Inquiry is not a legal document and is used to record the information about delivery or services from customers. The information that is captured using an inquiry is related to materials and quality of goods.

Menu Path − Logistics → Sales and Distribution → Sales → Inquiry → Create

T-Code − VA11

18) 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

19) 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.

20) 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

21) Is it possible to process outbound delivery without a shipping point?

Ans:

No

22) 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.

23) 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.

24) What are different sales document in SAP system? How to create a sales document?

Ans:

There are different types of sales document that can be defined in SAP system −

• Credit Memo
• Debit Memo
• Standard Order
• Delivery Returns, etc.

To define a Sales Document

Enter T-Code − VOV8 or SPRO → IMG → Sales and Distribution → Sales → Sales Document → Sales Document Header → Define Sales Document Type

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

No

25) 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

26) 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

27) 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.

28) 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.

29) 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.

How to find Copy Controls in SAP system?

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

30) 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.

31) 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.

32) 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.

33) 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.

34) 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.

35) 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.

36) What are the predefined condition types in SAP SD system?

Ans:

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

37) What do you understand by surcharge and discount? What are predefined discount type in SAP system?

Ans:

A standard SAP system includes variety of common discount types. You can also define customize discounts and surcharges as per business requirement.

Standard SAP system includes below discount types −

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

38) 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.

39) What is the use of product proposals in SAP SD module?

Ans:

Product Proposal helps an organization to increase the sales by recommended other products to the already added products or by replacing one already added. The products recommended can be cheaper, expensive or similar to the product that is requested by the customer.

Automatic Product Proposal is one of most powerful tool used in online marketing of products.

Product Proposals can be mapped to specific requirement of business partners to match their market requirement.

40) 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.

41) What are different sales order type that can be used in SAP SD system?

Ans:

There are different types of Sales Order that can be placed −

• Cash Sales

This is defined an order type where customer place an order, pick up the order and pay for the goods. In this order type delivery of the order is executed immediately when the order has been entered. Cash invoice and billing can be printed immediately from the order.

No Receivables is entered for customer as invoice amount is paid cash and directly entered to a cash account.

• Rush Order

In this order type, delivery of good is picked by customer or you deliver the goods on the same day when the order is placed.

• Scheduling Agreement

A scheduling agreement is defined as an external agreement with the customer and having details of quantity of goods and delivery dates. This information is mentioned as schedule lines In a standard system, Schedule lines can be created with the scheduling agreement or you can also create these at later stage.

42) 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

43) 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.

44) What are different type of outline agreements?

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.

45) 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

46) 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

47) 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)

48) 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.

49) Which T-Code are Using for Customer master?

Ans:

XDO1

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

Ans:

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

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

Ans:

General Data—– Control Data —- Tax Information

52) 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.

53) 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).

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

Ans:

One or more company code.

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

Ans:

One or more.

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

Ans:

One or More.

57) 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.

58) Who is creating Company Code?

Ans:

FICO consultant.

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

Ans:

VKOA.

Total, Requirement, Alternative Condition Type, Alternative condition base value, Account Key, Accruals Key.

60) What is the parent and child relationship?

Ans:

when after we r creating the IDOC type it will show screen, there we can create the segments by right click. then one pop up window will display like which segment(Ex: SEG1) u need to add to the IDOC then add the one more segment(Ex:SEG2) to the IDOC . while add SEg2 to the IDOC , pop up will display like segment name which u can add and there is the options like under which segment u need to create the segment here u can select SEG1.

now SEG1 —-> parent segment

SEG2 —-> child to the SEG1

61) 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.

62) 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.

63) 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.

64) 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.

65) How many sales document types?

Ans:

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

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

Ans:

67) One material can exist within one or more than one plant. Is it possible?

Ans:

Yes, it’s possible.

68) 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.

69) How to utilize long material number in SD Sales BAPI?

Ans:

Instead of the of ‘MATERIAL’ field, user must use ‘MATERIAL_LONG’ field

70) What to do if in case there are multiple down payment items in final billing document?

Ans:

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.

71) Getting Error message FF799 while releasing SD invoice to accounting

Ans:

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)

72) How can the we use report RVKRED08?

Ans:

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.

73) 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’.

74) Does tool ‘Synchronize Payroll Tax Data’ update any information in the BSI TaxFactory system?

Ans:

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.

75) Is it possible for a material to have Two Base Prices?

Ans:

Yes, by maintaining the validity period in records & the value gets triggered as per the pricing date mentioned in the transaction (Order).

76) 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.

77) What Stands for SPRO?

Ans:

SPRO stands for SAP Project Reference Object

SPRO is used to configure the SAP System as per client’s requirement.   IMG (Implementation Management Guide) menu which you will find customization settings for all SAP modules, will be shown after executing SPRO transaction.

78) Tel about the Order to Cash Cycle ?

Ans:

A customer orders some items from your company by creating a sales order

(Tcodes: VA01, VA02, VA03, Tables: VBAK, VBAP etc).

Your company decides to deliver the items ordered by the customer. This is recorded by creating a outbound delivery document (TCodes:VL01N, VL02N, VL03N, Tables: LIKP, LIPS etc).

Once the items are available for sending to the customer, you post goods issue which reduces your inventory and puts the delivery in transit. This will create a material document. You will post goods issue using VL02N but the material document created will be stored in tables MKPF, MSEG.

You will then create shipment document to actually ship the items. (Tcodes: VT01N, VT02N, VT03N, Tables: VTTK, VTTP etc).

You finally create a sales billing document. (TCodes: VF01, VF02, VF03, Tables: VBRK, VBRP etc). This will have a corresponding accounting document created that will be in BKPF, BSEG tables.

When customer pays to your invoice, it will directly hit your Account Receivables account in FI.

You will have to remember that these are not a required sequence. Some times, you may configure your system to create a SD invoice as soon as you create a sales order or you may not create a shipping document at all. This is the position where Functional Consultant would come into picture and study the company’s order to cash process and configure the SAP system to do so.

79) Explain how we will configure milestone billing , periodic billing and which scenario we will use?

Ans:

Menu path: IMG->sales & distribution->Billing->billing plans->define billing plan types.

You set the start date and end dates if applicable to the type of billing you are using. What time to be billed (end of month, start of month etc..)

Milestone is a billing plan type where a customer is billed for the amount distributed between the dates until total value is reached eg: if the total billing amount is 1000 USD for a year. You will bill the customer in different amounts say 200, 500, 300 at different intervals as per customer agreement.

On the other hand Periodic billing is billing the customer for the total amount(here 1000 USD) at regular intervals periodically until the customer agreement is reached. eg: 1000/12 for a 1 year agreement and say billed at the 1st day of every month

Explanation for Billing Plan for Milestone Billing

Milestone billing means distributing the total amount to be billed over multiple billing dates in the billing plan. As each milestone is successfully reached, the customer is billed either a percentage of the entire project cost or simply a pre-defined amount. During sales order processing, the system determines from the item category whether a billing plan is required and, if so, which type of plan ,The type of billing plan that is determined at this point is set up in Customizing and cannot be changed in the sales document. Billing plans for periodic billing and milestone billing plans for project-related milestone billing have different overview screens so that you can enter data relevant to your processing.

80) What are posting Keys and How are they used while making postings?

Ans:

Posting Keys are defined at Client Level. Posting keys determine whether a line item is a debit or credit as well as the possible field status for the transaction. In this context, it is essential to understand the factors that determine the field status of a transaction. The field status within a FI document is controlled by Accout Type, field status of Posting Key and the field status of the G/L account.

Modifying the SAP delivered Posting keys are not recommended. if a posting key is to be modified the best possible action is to copy the posting key that needs to be modified and then modify the copy. we can define the posting keys using the transaction OB41.

It also determines the account type to which the debit or credit is to be made and whether it is Spl G/L transaction. If it is a Spl G/L transaction, then the field for Spl G/L indicator becomes required entry.

81) What are the Movement types in MM ?

Ans:

In SAP Materials Management, goods movement is distinguished using a three digit key which is called the “movement type”. The movement type is important because it controls the screen layout, adjustment of inventories, the GL account for financial purposes etc. Goods movement have been discussed elaborately here. The various types of material movement types in SAP materials management MM are given below:

Movement Type and Goods Movement

• 101 Goods receiving for ordering
• 104 Goods receiving blocking status for ordering
• 122 Return delivery to suppliers
• 201 Goods outflow (WA) to cost centers
• 221 Goods outflow to project
• 231 Goods outflow to customer order
• 241 Goods outflow to factory
• 251 Goods outflow to sales
• 261 Goods outflow to order
• 291 Goods outflow for all account allocations
• 321 Release from quality checking
• 551 Goods outflow for scrap
• 321 Release from quality checking
• 451 Returns from customers
• 453 Inventory to inventory transfers
• 501 Goods receiving without order
• 511 No cost delivery
• 521 Internal goods receiving without manufacturing order
• 561 Inventory taking

82) Explain what is Physical Inventory?

Ans:

Main Business Scenario: Your enterprise has to carry out a physical inventory of its warehouse stocks at least once per fiscal year to balance its inventory. Various procedures can be implemented for this.

In a periodic inventory, all the enterprise’s stocks are physically counted on the balance sheet key date. Every material has to be counted. During counting, the entire warehouse must be blocked for material movements.

In the continuous inventory procedure, stocks are counted continuously throughout the entire fiscal year. In this case, it is important to ensure that every material is physically counted at least once during the fiscal year.

You can also implement special procedures, such as cycle counting (physical inventory at regular intervals) and inventory sampling (physical inventory of randomly selected stocks).

Physical Inventory types:

Periodic; Sampling; Continuous; Cycle Counting

With both continuous and periodic inventory types, the following stock types can be included in the physical inventory:

• Unrestricted use stocks in warehouse
• Quality inspection stocks
• Blocked stock

The cycle counting inventory method creates a physical inventory document only for stock type 1 (unrestricted use). The inventory sampling procedure is only applicable to stock types 1 (unrestricted use) and 2 (quality inspection stocks).

The Physical Inventory Process: Create physical inventory document->Set blocking indicator->Print physical inventory document->Enter count results->List of differences->Post differences

Physical Inventory Number:

The physical inventory number was created as an additional hierarchy above the physical inventory document number. You can use it to group together different physical inventory

documents that belong together organizationally.

You assign physical inventory numbers when you create and change physical inventory documents, and you can use them as an extra selection criterion for physical inventory reports. This enables you to directly display the physical inventory documents per storage location, customer, or vendor.

If you have not finished entering the complete physical inventory count, you can freeze the book inventory balance in the physical inventory document to prevent goods movements from changing the book inventory balance relevant to the physical inventory count, which would result in incorrect inventory differences. You define in Customizing for Inventory Management whether you can freeze book inventory balances in the storage location.

When entering a physical inventory count with reference to a physical inventory document that contains many items with a quantity of zero, you can set zero count automatically for all items that have not yet been counted.

In Customizing for Inventory Management, you can define the following value tolerances for posting inventory differences for a user group:

maximum amount per physical inventory document maximum amount per document item

Relevant tables:

• IKPF: Header: Physical Inventory Document
• ISEG: Physical Inventory Document Items

83) What is the use of VPRS, EK01 and Ek02? For material cost we are using VPRS why we need EK01 and EK02 ?

Ans:

VPRS is the internal price condition which is copies from material master and can not be manual procss.It is mainly used to calculate revenue sv from particular material. EK01 is for actual costing EK02 is for calculates costing for costing purpose.

84) How to stop PGI?

Ans:

We Can’t stop PGI (Post Goods Issue ), if u want to reversal u can use VL09 and then cancelled delivery to use transaction VLO2N.

85) What is Business Process Reengineering ? Explain it ?

Ans:

BPR means the existing business process how you re-engineered to get client requirements. (Line items clearing at the time of customer receipts which is not exists in the legacy)

86) How is shipping point determined?

Ans:

shipping point will be determined based on the shipping conditions, loading group and delivery plant.

87) Where do you assign Movement Type?

Ans:

we assign movement type in schedule line category. As is is related to transfer.

88) What is out put of Blue print ?

Ans:

Blue print means collecting the business requirements and mapping these with in sap R/3 if propose is not met then some other solution how to map in SAP R/3 i.e AS IS – TO BE study so the out put will be under standing the requirements and providing the solution in sap with flow charts and get the acceptance from the business team before configure the system i.e realization stage