SAP SD Interview Questions

SAP SD (Sales & Distribution) Interview Questions & Answers

Q1. What is SAP SD and its scope?

SAP SD manages the order-to-cash (OTC) cycle: presales, sales order processing, shipping, billing, pricing, and credit management, integrated with MM, FI/CO, PP, and EWM.

Q2. SD organizational structure

Key elements: Sales Organization, Distribution Channel, Division, Sales Area, Sales Office/Group, Plant, Shipping Point, and Company Code.

Q3. Sales area (Sales Org/Dist Channel/Division)

A unique combo that controls pricing, master data, and document processing for sales. All sales documents belong to a single sales area.

Q4. Master data in SD

Customer master/Business Partner, Material master (sales views), Customer-Material Info Record, Condition records (pricing), Output/Text records.

Q5. Customer master vs Business Partner (S/4HANA)

S/4 unifies customer/vendor using Business Partner with roles (e.g., FLCU01/02). BP is mandatory; legacy XD*/VD* are compatibility UIs.

Q6. Material master views relevant to SD

Sales: Sales Org 1/2, General/Plant, Sales: General/Plant, loading group, transportation group, item category group, MRP/ATP relevance.

Q7. Customer-Material Info Record

Stores customer-specific material data (customer material number, delivery tolerances, shipping details) that override general master data.

Q8. Partner determination

Defines required partner functions (SP, SH, BP, PY). Determination procedure is assigned to account groups and document types.

Q9. Account groups & number ranges

Control field status and number assignment for Business Partner/customer master creation.

Q10. Item categories & determination

Drive behavior at item level (pricing, delivery relevance, schedule lines). Determined by sales doc type + item cat group + usage + higher-level item.

Q11. Schedule line categories

Control delivery relevance, movement type, requirements/ATP check. Determined by item category + MRP type.

Q12. Copy control in SD

Rules to copy data between documents (e.g., inquiry→quotation→order→delivery→billing) with routines that influence pricing, quantities, and references.

Q13. Common sales document types

Inquiry (IN), Quotation (QT), Standard Order (OR), Return (RE), Debit/Credit Memo Request (DR/CR), Scheduling Agreement (LP/LZ), Contracts (CQ).

Q14. Sales document structure (header/item/schedule)

Header holds global data (sold-to, terms). Item holds material/qty/pricing. Schedule lines hold delivery dates/confirmed qty.

Q15. Incompletion procedure

Ensures mandatory data is entered; blocks can prevent delivery/billing until completion.

Q16. Availability Check (ATP) concepts

Checks stock and receipts (planned orders, purchase orders). Scope of check and checking group define elements considered; confirms schedule lines.

Q17. Backorder Processing (BOP)/aATP

BOP reallocates confirmations based on priority. In S/4 aATP adds advanced rules (EDD, supply protection, product allocation).

Q18. Delivery document processing

Creation (VL01N/VA03→delivery), picking/packing, PGI. Controls via delivery type, item category, and shipping point.

Q19. Picking/packing & Warehouse integration

Picking via WM/EWM, packing via handling units. Integration passes requirements to warehouse tasks and confirms back to SD.

Q20. Post Goods Issue (PGI)

Reduces inventory, posts COGS, updates document flow and requirements; triggers FI accounting entries.

Q21. Shipping point determination

Based on Ship Cond + Loading Group + Delivering Plant; configured per Sales Org.

Q22. Route determination

Uses Shipping Conditions, Transportation Group, and Destination Country/Zone to select route for transit times and scheduling.

Q23. Billing basics & types

Invoice from delivery (LF→F2), order-related billing (e.g., services, milestone), pro forma (F8), credit/debit memos, cancellation.

Q24. Billing due list (VF04) & split criteria

Consolidates items for invoicing; split occurs by payer, incoterms, payment terms, exchange rate type, etc., per copy control settings.

Q25. Intercompany billing

Cross-company sales: delivering company bills selling company (IV), then F2 to customer; requires PI sales org, plants, and intercompany pricing.

Q26. Third-party & drop shipment

Item category TAS triggers purchase requisition; vendor ships to customer; billing is order-related using vendor invoice quantities.

Q27. Returns processing

Return order (RE), returns delivery (LR), inspection, credit memo; quality blocks and movement types manage stock disposition.

Q28. Credit management (FSCM)

Scoring, credit limits, checks at order/delivery/PGI; credit blocks with workflows; replaces classic SD credit mgmt in S/4.

Q29. Pricing condition technique

Conditions (PR00, K007, KF00) determined by access sequences and condition records; supports scales, requirements, formula routines.

Q30. Access sequence, condition tables

Defines search strategy (e.g., Customer/Material/Price Group) through condition tables and fields for pricing.

Q31. Pricing procedure determination

Based on Sales Area + Customer Pricing Procedure + Document Pricing Procedure → determines procedure (e.g., RVAA01) with steps and subtotals.

Q32. Taxes, freight, surcharges/discounts

Tax via condition types (MWST), jurisdiction, country rules; freight via KF00; header/item discounts (K004/K007), promotions via VBN1.

Q33. Free goods & promotions

Inclusive/exclusive free goods, bonus buy, product substitution via condition technique and master data.

Q34. Rebates vs Condition Contract Mgmt (S/4)

Classic rebates replaced by Settlement Mgmt with Condition Contracts (agreements, accruals, settlement docs) in S/4HANA.

Q35. Account determination (VKOA)

Maps revenue, deductions, freight to G/L using key fields (chart of accounts, account assignment group customer/material, account key from pricing).

Q36. Output/Message determination

Controls print/EDI/email of order, delivery, invoice via condition records and output types (e.g., BA00, LD00, RD00).

Q37. Text determination

Manages notes across master and transaction documents with determination procedures and copy rules.

Q38. Listing/Exclusion & product substitutions

Restricts or permits sales of materials to customers; substitution with material determination (VB11) and strategy tables.

Q39. Incoterms, shipping conditions

Define delivery terms, risk transfer, and logistics planning; flow from master data to documents and affect route/transport.

Q40. Revenue recognition & SD-FI integration

Integration posts revenue/COGS at PGI/billing; advanced RR uses RAR in S/4 for IFRS 15 (contract identification, allocation, fulfillment).

Q41. Common SD tables

• VBAK / VBAP – Sales order header/items
• LIKP / LIPS – Delivery header/items
• VBRK / VBRP – Billing header/items
• KONV / PRCD_ELEMENTS (S/4) – Pricing
• KNA1 / KNVV – Customer master (BP tables in S/4: BUT*)

Q42. Reports & analytics in SD

VA05, VL06O, VF05, backorder reports, pricing analysis, and embedded analytics (CDS views/Fiori apps) in S/4.

Q43. Delivery block & billing block usage

Blocks control release stages (credit review, QA, missing data). Configured in doc types/item categories or via incompletion.

Q44. Credit/debit memo requests

Reference-based requests create controlled billing adjustments; approval via workflow before VF01 posting.

Q45. Make-to-Order (MTO) vs Make-to-Stock (MTS)

MTO ties costs/revenue to sales order items; MTS delivers from stock with standard valuation and typical delivery-based billing.

Q46. Cross-company sales & STO differences

Cross-company SD involves customer billing + intercompany IV; STO is MM logistics between plants with delivery and optional billing.

Q47. EDI/IDoc basics for SD

Order (ORDERS05), DESADV for ASN, INVOIC02 for billing; partner profiles, ports, and output conditions drive integration.

Q48. S/4HANA SD key changes

Business Partner mandatory, Settlement Mgmt replaces rebates, aATP, simplified data model (ACDOCA/PRCD_ELEMENTS), FSCM credit mgmt, Fiori apps.

Q49. Common SD implementation challenges

• Incorrect pricing/condition maintenance
• Unclear partner roles or master data gaps
• ATP scope causing over/under confirmations
• Delivery split due to inconsistent header data

Q50. Best practices for SD design

• Standardize pricing and account determination early
• Derive partner/CO-PA characteristics at source
• Use aATP and Fiori analytics for transparency
• Document copy control & split criteria; automate tests