SAP S/4HANA Logistics — Interview Questions Booklet (50 Q&A)
Sourcing & Procurement • Inventory & Valuation • Sales & Distribution • Production & MRP Live • EWM & TM • aATP • Fiori & Analytics • Integrations • Real Scenarios
1) What is S/4HANA Logistics and how is it different from ECC?
Answer: S/4HANA Logistics is the simplified, HANA-optimized footprint for source-to-pay, plan-to-produce, and order-to-cash. It replaces many aggregate/duplicate tables (e.g., MSEG → MATDOC), adopts Business Partner, embedded analytics, Fiori, and real-time MRP Live.
2) What is the role of the Universal Journal and MATDOC for logistics?
Answer: Universal Journal (ACDOCA) unifies FI/CO postings; MATDOC is the single line-item table for inventory movements. Together they reduce reconciliation effort and enable real-time reporting.
3) Why is Business Partner (BP) mandatory in S/4HANA?
Answer: BP is the single master for customers and vendors (roles FI Customer/Vendor, Supplier, Customer). It harmonizes data across SD/MM/FI and simplifies integration and governance.
4) Which logistics simplifications are most impactful?
Answer: MATDOC-based inventory, New Credit Management (FSCM), aATP replacing classic ATP, New Output Management (BRF+), New PP/DS integration, mandatory Material Ledger for valuation, embedded EWM/TM options.
5) How does Fiori change logistics UX?
Answer: Fiori delivers role-based tiles (buyers, warehouse clerks, sales reps) with KPIs, embedded analytics (CDS), mass actions, and mobile-friendly transactions, reducing reliance on classic GUI TCodes.
6) How is the procure-to-pay process modeled in S/4HANA?
Answer: Requisition → sourcing (quotations/contracts/Scheduling Agreements) → PO → goods receipt (MIGO/Fiori) → invoice verification (MIRO/Fiori) → payment. Integration with QM (01 inspection), EWM, and FI/CO.
7) What’s the difference between Contract and Scheduling Agreement?
Answer: Contracts set value/quantity limits for call-offs; Scheduling Agreements include delivery schedules/lines, favoring JIT replenishment with release documentation.
8) How does account determination work for MM postings?
Answer: Valuation class + transaction key (e.g., BSX, WRX) map movements to G/L. In S/4, Material Ledger and split valuation influence price/variance accounts.
9) How do you implement release strategy for POs?
Answer: Define classification characteristics (value, plant, material group), release classes, strategies, and agents. Use Fiori for approval workflows and monitor exceptions.
10) How are subcontracting and consignment handled?
Answer: Subcontracting: provide components via 541; receive finished goods with consumption backflush. Consignment: stock owned by vendor until withdrawn; settlement via MRKO.
11) What stock types exist and how are they used?
Answer: Unrestricted-use, quality inspection, blocked, and special stocks (consignment, subcontracting, sales order). Transitions via movement types and usage decisions.
12) What changed with physical inventory in S/4HANA?
Answer: Cycle counting and continuous inventory leverage Fiori apps, MATDOC for fast counts, and improved difference posting with analytics on count accuracy.
13) How does Material Ledger affect valuation?
Answer: Material Ledger is mandatory, enabling multi-currency/material valuation and actual costing; variances settle to inventory/COGS at period end.
14) When do you use split valuation?
Answer: To value the same material differently by origin, grade, or procurement type (e.g., in-house vs. external). It impacts price control and account determination.
15) How are batch and serial numbers integrated?
Answer: Batch management supports characteristics/expiry; UD/QM updates batch class. Serial numbers ensure traceability from GR to GI and service/returns.
16) What master data drives SD in S/4HANA?
Answer: BP customer (roles), material master (sales views), condition records (pricing), customer/material info records, credit management (FSCM), and partner determination.
17) How does pricing work with the condition technique?
Answer: Pricing procedure defines sequence/requirements; condition types (PR00, discounts, taxes) are found via access sequences; scales, routines, and statistical conditions apply.
18) What is aATP and how is it better than classic ATP?
Answer: Advanced ATP provides backorder processing, product substitutions, allocation (PAL), and alternative delivery proposals with powerful Fiori apps and rules-based checks.
19) How does new credit management work?
Answer: S/4 uses FSCM Credit Mgmt with BP, scoring, risk categories, and checks at order/delivery/billing. It supports credit exposures, re-evaluations, and workflows.
20) How does SD billing integrate to FI/CO and Revenue Accounting?
Answer: Billing posts AR and revenue to FI via account determination and can feed Revenue Accounting (RAR) for IFRS 15 scenarios (bundles, POBs, timing).
21) What is MRP Live and why is it faster?
Answer: MRP Live runs in-memory on HANA using simplified data models and CDS, dramatically reducing runtime and allowing more frequent planning cycles.
22) How do BOMs, routings, and work centers fit together?
Answer: BOM defines components; routing (or master recipe) defines operations/resources; work centers host capacities. Production orders/PP-DS consume these to schedule and execute.
23) What’s the role of production versions?
Answer: Production versions link BOM and routing/recipe alternatives. They’re mandatory for order creation and enable alternative selection by validity, lot size, or source.
24) How do you handle backflushing and confirmations?
Answer: Backflush posts component consumption at operation/confirmation; confirmations update yields, scrap, activity times, and trigger WIP/variance calculations.
25) How does Demand-Driven Replenishment (DDR) fit in?
Answer: DDR uses buffers (red/green) and decoupling points to prioritize flow; S/4 provides buffer calculation and replenishment proposals complementing classic MRP.
26) Embedded vs. decentralized EWM — when to choose?
Answer: Embedded fits single-instance needs with tight integration; decentralized suits large/complex networks needing independent scaling/high availability.
27) What are key EWM master data and structures?
Answer: Warehouse number, storage types/sections/bins, WOCRs, activity areas, packing specifications, and process types; HU management and slotting.
28) How do inbound and outbound processes work in EWM?
Answer: Inbound: ASN/GR → putaway tasks/WOs via strategies. Outbound: wave/wave templates → picking → packing → staging → GI. RF and labor mgmt optimize execution.
29) How does EWM integrate with QM and batch?
Answer: Inspection lots can be created in EWM-integrated GR; batches and SLED/expiry drive picking; UD moves stock to available bins or blocks/returns.
30) What is task interleaving and why use it?
Answer: Interleaving sequences tasks (putaway/picking/physical inventory) to minimize travel and idle time, improving utilization and throughput.
31) How does TM integrate with SD and MM?
Answer: Sales/delivery orders and purchase orders create freight units; TM plans shipments, carrier selection, and execution; GI/GR feedback updates SD/MM and costs flow to FI/CO.
32) What are Freight Unit and Freight Order?
Answer: Freight Unit is the planning object derived from orders; Freight Order/Booking represents the actual transport execution with carrier, route, and schedule.
33) How are charges calculated and settled?
Answer: Charge management applies rate tables/agreements to freight orders. Freight settlement creates Service Entry Sheets/invoices and posts accruals/actuals to FI/CO.
34) What planning tools does TM provide?
Answer: VSR optimizer, transportation cockpit, load consolidation, carrier selection, and what-if simulations with resource constraints.
35) How do you handle international trade requirements?
Answer: Integrate with SAP GTS for embargo/sanction screening, export declarations, and preference determination; TM passes necessary trade attributes.
36) What are CDS views and why do they matter?
Answer: Core Data Services define semantic, HANA-optimized views that power embedded analytics and Fiori KPI tiles, enabling real-time insights without BW for many scenarios.
37) Which Fiori apps are essential for logistics roles?
Answer: Buyer: Manage Purchase Orders/Contracts; Warehouse: Inbound/Outbound Delivery Processing; Sales: Sales Order Fulfillment, aATP apps; Planner: MRP Cockpit; TM: Transportation Cockpit.
38) How does MDG help logistics data quality?
Answer: SAP MDG governs material, BP, and finance master data with workflows, validations, and duplicate checks, improving downstream procurement, sales, and planning accuracy.
39) What’s New Output Management and when to use BRF+?
Answer: New Output Mgmt uses BRF+ rules and Adobe Forms for outputs (PO, invoices, delivery notes). It replaces NAST in many areas and simplifies email/XML handling.
40) Which logistics KPIs do you track on S/4?
Answer: OTIF, PO cycle time, GR-to-IR variance, inventory turns, DIO/DSO, pick accuracy, freight cost per unit, and backorder fill rate via embedded analytics/SAC.
41) How do you integrate S/4HANA with Ariba and IBP?
Answer: Use SAP Cloud Integration (CPI) and standard APIs: Ariba for sourcing/PO collaboration; IBP for demand/supply planning with master/transactional data replication.
42) What interface technologies are common?
Answer: OData/REST APIs, IDocs, SOAP, file-based SFTP, and events (Enterprise Messaging). Choose based on real-time vs batch, volume, and reliability needs.
43) How do you extend logistics apps safely?
Answer: Use key-user extensibility (fields, UI adaptations), BTP side-by-side apps (CAP/UI5), enhancement spots/BAdIs, and keep core clean to ease upgrades.
44) How are EDI scenarios implemented?
Answer: Via IDocs/EDI messages (ORDERS, DESADV, INVOIC) integrated with VANs/partners; monitor in AIF/WE02 and apply partner-specific mappings.
45) How do you secure logistics processes?
Answer: Role-based authorizations, Fiori catalogs/groups/spaces, field-level controls (e.g., price in PO), change logs, credit/QM release workflows, and SoD monitoring.
46) GR posted but stock not available for delivery — what do you check?
Answer: Stock type (QI/blocked), batch status/expiry, EWM putaway status, and reservation/ATP. Perform UD or bin putaway; run aATP recheck.
47) MRP created excess supply — how to correct?
Answer: Validate demand sources (sales forecast, PIRs), lot-sizing, safety stock, and planning file entries. Use exception messages and MRP cockpit to adjust.
48) aATP backorder processing not reallocating — next steps?
Answer: Check BOP variant priority rules, confirmation strategies, product allocations, and delivery blocks. Re-run BOP and analyze app logs.
49) Vendor invoice not matching GR — resolution path?
Answer: Use 3-way match analytics; investigate price/quantity variances, exchange rates, and GR/IR clearing; post subsequent debit/credit or return delivery.
50) Freight costs missing from COGS — how do you fix?
Answer: Ensure TM charge settlement → SD/MM; map condition types to account keys; include freight in pricing/valuation and run cost component split update.