SAP SD Interview Questions And Answers [2025]

Q1. What is SAP SD?
ANS: One of the primary modules, sales, and distribution, abbreviated as SD, is developed by SAP (System Application Product) to manage billing, selling, shipping, and transportation of several products they own. This module registers consumers' data, along with the products they've purchased.

Q2. What is the primary function of SAP?
ANS: The primary function of SAP is to smoothly run and grow the businesses and services in numerous large companies. It is one of the top Enterprise Resource Planning (ERP) software.

Q3. What are the areas we use SAP?
ANS: Initially developed by IBM, SAP was made to resolve software application problems. Later, it came up with SAP R/3 application software, where R stands for real-time data processing and 3 represents Application, Presentation, and Database Leaders.
SAP became popular in no time. It was adopted by giant enterprises resulting in adding many other SAP modules, such as finance and accounting, production and planning, controlling, materials management, and more, to cover specific areas in a business.

Q4. Explain organizational structure in SAP SD.
ANS: Components in SAP, like sales areas, divisions, distribution channels, sales offices, and sales groups, follow these two steps within an organization:
Create organization element in the SAP system
Link each element according to the requirement

Q5. Describe material management in the SAP ERP system.
ANS: Material management is one of the most significant modules in SAP ERP systems, linked with other SAP R/3. All these other modules are interlinked with each other. The primary function of material management is to keep a record and monitor everyday business requirements and operations in the inventory.

Q6. How is material management associated with SAP SD?
ANS: Multiple links are there between SAP SD and SAP MM. Material management is used to create inbound and outbound sales and distribution updates. Likewise, MM is used to find out the price details and availability of the product but is controlled by the sales and distribution module. 

Q7. What are SAP SD modules?
ANS: SAP SD modules contain all the customer data and related information about their services. It is one of the essential modules in SAP ERP that deals with billing, selling, and transportation of goods and services of the organization. SAP SD also contains several sub-modules for seamless functioning of the software.

Q8. Explain about sales support.
ANS: Also called CAS (Copter Aided Selling), sales support is one of the crucial components of SAP SD. The primary function of this module is to assist companies and large organizations in building new sales, tracking existing and old sales, and maintaining a record of the performance along with the sales. It is a helpful module to look up the work progress and make changes in the procedures, if necessary. Gathering information on interested customers can be done through emails, which helps the business to a great extent.

Q9. What are the main functions of sales order processing?
ANS: e-Transfer of documents and printing them
Checking the availability of the purchased articles
Checking for incomplete data
Scheduling goods delivery dates
Checking the status updates of sales transactions
Calculation of prices and taxes

Q10. Name the type of sales order (modules) related to SD.
ANS: Availability Check
Tax Determination
Sales Order
Link Points
Credit Check
Costing

Q11. What is the sales area in SAP SD?
ANS: The sales area in the SAP SD helps to determine what marketing strategy has been adopted by one particular division for improving sales. It combines the sales organization, divisions, and distribution channels.

Q12. What is the distribution channel in SAP SD?
ANS: Distribution channels in SAP SD consist of details and information on distributed products. It keeps a log of all the services and products provided to the user by the organization.

Q13. Explain the division in SAP SD.
ANS: The product and service lines of a product in an organization are shown by division in SAP SD. 

Q14. What is a partner function?
ANS: SAP SD counts all the steps within an organization through partner functions. These functions allow the organizations to keep a record of which partner is linked to a particular customer, the performance record, and the details of customers or partners with whom business is carried out.

Q15. Explain sales activity in an SAP SD.
ANS: Sales activity is one of the activities that take place in SAP SD. They are the tasks that sales personnel undertake to improve sales.

Q16. Name and describe types of pre-sales activities.
ANS: Pre-sale activities are those activities that occur before the product's sales to customers. Inquiries and quotations from the vendors are a few of the pre-sale activities.

Q17. What is an outline agreement?
ANS: An outline deal or an agreement is a long-term purchasing agreement signed with a vendor. Numerous terms and conditions are mentioned in the agreement stating the materials are supplied by the vendors. There are two types of outline agreements under SAP SD - scheduling agreement and contract.

Q18. What is a contract in an outline agreement?
ANS: The contract is a formal agreement signed between the vendor and the customer for a while. There are two types of contracts - value and quantity. 

Q19. Describe the process of creating a 'scheduling agreement'.
ANS: A scheduling agreement is an external agreement that applies to the customers and contains product details, delivery dates, and services. 

Q20. Describe what the types of contracts are.
ANS: There are two types of contracts:
Quantity contracts: In this type of contract, the vendor has to write the terms and conditions of the contract according to the material quantity being supplied.
Value contracts: In this, the vendor has to pay the value for their services and mention the same in the contract.

Q21. What are schedule line categories?
ANS: In a sales document, all the items are divided into schedule lines, which are assigned to multiple control elements. The scheduled lines mention all the details, such as quantity, delivery dates, inventory availability, and more. 

Q22. What are the schedule line categories in different sales documents?
ANS: According to the item category and sales document type, scheduled lines are categorized. All these control elements are related to shipping and general data, which are used to categorize schedule lines.

Q23. What do you mean by copy control?
ANS: It is known as copy control when all the crucial data, such as transaction details, are copied from one document to another. The SAP system consists of copy routines, which keep a record of how the systems copy data from one source to another target document. Such type of information helps create additional routines that will meet the business requirements.

Q24. How do copy controls work in SAP systems?
ANS: There are three different levels in a sales order, which are as follows:
Header level: Used when the system copies the data from the header source to the target header document.
Item level: Used to find out the line item status.
Schedule line level: Used when copying sales orders is done from the billing document

Q25. How is pricing done in SAP SD?
ANS: Pricing in SAP SD is done to figure out the prices of external customers or vendors. There is some predetermined set of conditions when the pricing is calculated. 

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Q26. What is manual pricing?
ANS: During the sales order process, manipulation of prices can be done manually on the item level as well as the header level. The manual manipulation is dependent on individual conditions to determine the price. The set of activities goes as follows:
Enter additional pricing elements
Delete the pricing element
Change the condition

Q27. What is the condition table and record?
ANS: To identify an individual condition record, a combination of keys is required. This is known as a condition table. The system stores related information in a particular format and specific condition, which is called a condition record. 

Q28. What is the access sequence?
ANS: An access sequence is a search procedure used to find data for one particular type. The system search order path can be determined to retrieve the data. An access sequence consists of more than one access sequence that is used to search for a valid record relevant to the conditions until it's found successfully. 

Q29. What is pricing by item category?
ANS: All the items are not suitable for pricing. The item is kept empty/blank if found it's not suitable or relevant for pricing. Item category is used to determine the prices of such items. 

Q30. Name the pricing and types.
ANS: The price of a material depends upon several factors. To determine the price of the material, the system is dependent on various predefined price types, which are referred to as gross prices. There are three types of cost in a system - price list type, material price, and customer-specific price. 

Q31. Explain SAP SD product proposals.
ANS: A top-notch strategy to improve any company's sales performance is proposing a new product. These products can be expensive, cheap, or similar to the products requested by the customer. The system uses a power tool to market products online. This tool is known as an automatic product proposal, which is capable of matching their market requirement. Anyone can make such proposal types by using the SAP CRM module.

Q32. What are the features that the project proposal supports?
ANS: The relationship between different products is cross-selling. Its rules suggest up-selling, down-selling, leading, and sub-associated products.
Generating product proposals, proposing accessories, and top N product lists concerning specific promotions. 

Q33. Explain the types of sales orders.
ANS: Different transactions define different sales document types. Business transactions are grouped into sales document categories as follows:
Sales orders
Inquiries and quotations
Post-sale documents
Outline agreement 

Q34. What is the quota arrangement?
ANS: The materials to manufacture a product are taken from several local vendors. In a quota arrangement, a quota is assigned to each supply source. The one who drops the lowest quota pricing will represent the product production. 

Q35. What do you mean by the special business process in SAP SD?
ANS: The most significant feature of the SAP SD module is that it can create a special business process like customizing the products and getting them manufactured personally, apart from normal sales orders. 

Q36. Explain consignments processing.
ANS: A few products are owned by the company that are located at the client's location. These products are known as consignments. 

Q37. Explain shipping in SAP SD.
ANS: Shipping activity is tracked to ensure logistics are running smoothly and customer service and distribution are going seamlessly. Shipping is used to do outbound delivery and other activities like packing goods and picking them up to transfer to their destination.

Q38. What is picking, packing, and posting a good issue in delivery processing?
ANS: Picking, packing, and posting good issues in delivery processing - all these procedures are done strategically in the SAP warehouse management system. SAP SD finds the best way to handle goods by avoiding disturbances with the help of available data in the systems. Packings are of two types: manual and automatic. Picking is of three types: self-pick-up, individual pick-up, and pick-up as per defined intervals.

Q39. How is credit management done in SAP SD?
ANS: The next step after the sales have been made is to keep a record of goods sold and money collected. This can also be done in the SAP SD module. The following are the key features of credit management:
Automatic credit check
Simple credit check

Q40. What is mapping an enterprise structure in SAP SD?
ANS: An enterprise structure is defined by several organizational units, like distribution channels, clients, company code location, and more, which represent the corporate world's business structure.

Q41. Describe the transfer order.
ANS: A transfer order contains all the information related to transferring materials in and out of the warehouse. It also contains data related to storage to execute logical stock transfers within the allotted time frame.

Q42. What do you mean by shipping points?
ANS:One delivery is only processed by one shipping point, independent organizational entities. In a shipping point, processing and monitoring of all deliveries and goods are carried out. 

Q42. Why should you select SAP over others?
ANS: SAP helps outsource a business's security, infrastructure, and continuity at lower costs. Customers prefer several SAP platforms for real-time analytics because of their quick processing and solution capability. SAP is localized in over 120 countries and operates in 37 languages, which makes it versatile to collaborate with various companies.
 

Q43. How can you explain the access sequence for header conditions?
ANS: There is no determination at the header level, so one cannot change the access sequence for header conditions in SAP. Use a group condition at the item level to access the sequence. Even though a condition is entered manually on the header, it is still distributed to the item level as that's where pricing applies. 

Q44. What is sales support?
ANS: Sales support is a vital part of SAP Sales and Distribution. It’s also known as Computer-Aided Selling. This module helps in generating new sales, monitoring ongoing sales and performance, and improving overall sales and marketing efforts.
With SAP SD’s sales support, organizations can create email lists for customers and send emails to new leads. It also stores data on customer sales, products, competitors, and materials.

Q45. Explain the calculation for the shipping point.
ANS: Determining the shipping point in SAP SD is straightforward. It’s a combination of shipping conditions, loading group, and delivery plant. So, the shipping point equals the shipping conditions plus the loading group plus the delivery plant. This calculation is fundamental in SAP SD. 

Q46. Describe the differences between milestone and periodic billing.
ANS: Milestone and periodic billing give businesses flexibility in how they invoice based on industry norms and their unique fulfillment cycle. Periodic billing follows a set contract period, like Net30, where bills are due within 30 days.
Milestone billing happens as clients achieve project milestones. For instance, a web design company bills clients as they complete specific project tasks, like getting approval on a wireframe or finishing the initial layout.

Q47. What is copy control, and when can you perform it?
ANS: Copy controls in SAP SD refer to how experts transfer information from one document to another. By applying copy controls, the system ensures accurate data transfer to the target document.
This helps automate repetitive tasks, like billing, making it easier for users. Methods for copy control include copying sales documents, deliveries, and billing documents in various combinations. 

Q48. What is the quota arrangement?
ANS: Quota arrangement in SAP SD determines how sales quantities are allocated among different sources or locations. Multiple local vendors supply materials for product manufacturing.
Each vendor is assigned a quota, determining their share in supplying the materials. The vendor offering the lowest pricing within their quota gets selected for product production. 

Q49. Can you explain the key differences between SAP SD in ECC (ERP Central Component) and SAP SD in S/4HANA? How does S/4HANA enhance sales and distribution processes?
ANS: SAP SD in ECC is based on traditional databases, while S/4HANA runs on an in-memory database, offering faster processing and real-time analytics.
S/4HANA simplifies sales processes with streamlined data models, advanced analytics, and a user-friendly interface through Fiori apps. This enables quicker decision-making, improved customer service, and enhanced efficiency in sales and distribution operations.
 

Q50. Can you explain the integration points between SAP SD and other modules like MM and FI/CO? How do these integrations streamline business processes?
ANS : Integration between SAP SD, MM, and FI/CO modules ensures seamless business operations. In SAP SD, sales orders trigger procurement processes in MM for material availability, while FI/CO manages financial transactions.
This integration optimizes inventory management, ensures accurate financial reporting, and provides end-to-end visibility into sales cycles, enhancing overall business efficiency and decision-making.

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