SD (Sales and Distribution) is the core module of SAP ERP and is widely used across companies. It handles all the business processes like sales, purchase, billing, and delivery, etc. More and more companies are now looking for skilled SAP SD professionals. Skills taught under SD are very valuable, making SAP SD a highly demanded career. If you wish to make a career in a high-paying job, SAP SD is the right choice. And if you already have an interview scheduled, this guide is all you need - we've compiled the 20 most basic SAP SD interview questions, which will definitely help you succeed in your interview.
20 SAP SD Interview Questions for Freshers and Experienced Professionals
Preparing in advance for interviews can contribute to stress reduction, especially if you are new to the job market. Situated below are some SAP SD interview questions for experienced people, as well as beginners. We have tried to cover all the questions that can be asked by employers.
SAP SD Interview Questions for Freshers
Q1. What is SAP SD? What is the use of it?
A. SD in SAP stands for Sales and Distribution. It is a sales module that deals with the processing of sales, delivery, and billing. It enables vendors to monitor the whole sales process from lead to close.
Q2. What are the subtopics/areas of SAP SD?
A. Here is an overview of SAP SD core elements: Sales, Shipping, Billing, Transportation, and foreign trade are some of the active components of SAP SD. The different parts of the process of sales and distribution are the concerns of every module that has been discussed.
Q3. Define Sales Organization in SAP SD?
A. The sales organization is a component within SAP SD responsible for the sale of products and services. It is the highest-level component for sales proceeds.
Q4. Explain Sales order vs purchase order.
A. A sales order is initiated by the seller when a customer expresses a desire to purchase goods or services, and a purchase order is initiated by the buyer when they want to buy. Conversely, a purchase order is generated by a purchaser for the supply of goods or services. We do sales orders in SAP SD.
Q5. What is a Delivery Document in SAP SD?
A. Sales order confirmation results in creating a Delivery document. It includes all the information required to perform a goods delivery to the customer (delivery date, quantity, shipping details and so on).
Q6. What is a billing document used for?
A. A billing document is created after a delivery. It is a record to bill the customer and also contains the value of the material or services provided.
Q7. What is the condition type in SAP SD?
A. Condition type means a pricing element in a sales transaction that is used to determine the price. For instance, in SAP SD, there exist prices, discounts, freight charges, and taxes as condition types.
Q8. What is the importance of the material master in SAP SD?
A. There is some data in the material master related to a Product or Material. In SAP SD, it gives sales information like pricing, delivery, or sales data, which is required at the time of order.
Q9. What is a credit control area?
A. It is an organizational unit to define the area of the customer and is associated with it to monitor and control the credit limit. It allows companies to mitigate the risk associated with customers exceeding the credit allowed to them.
Q10. Explain the order-to-cash process in SAP SD.
A. The order-to-cash process (O2C) is a process that processes customer orders and drives revenue. It starts with the order processing and continues through order fulfillment and ultimately to order receipt and payment. This process in SAP SD consists in creating a sales order, delivering the sales order, invoicing, and, ultimately, collection of payment.
SAP SD Interview Questions for Experienced Workers
Q11. What is the importance of partner function in SAP SD?
A. The partner function is a business term that means a particular role that a business partner can take in a sales process, for example:
- Sold-to party
- the ship-to party
- the bill-to party
- The payer
They enable SAP SD to send the right information to the right recipient.
Q12. How is the price calculated in SAP SD?
A. Pricing in SAP SD Pricing is determined through a condition technique that involves condition types, access sequences, and condition tables. The system determines the price automatically when a sales order is created based on the condition records that have been maintained.
Q13. What is a return order, and how do you process it?
A. A return order is raised when a customer wants to return goods. It is done with a return order type (RE) and then by a returns delivery, a goods receipt, and a credit memo for the return of money to the customer.
Q14. What is the difference between a transfer order and a delivery order?
A. A delivery order is generated in SAP SD for the purpose of shipping goods. A transfer order is created in Warehouse Management (WM) to move goods physically from one place to another within the warehouse, before shipping.
Q15. What defines a scheduling agreement in SAP SD?
A. A scheduling agreement is a type of long-term purchasing arrangement with a vendor or customer. It specifies the total quantity to be supplied or to be received over a period, along with delivery schedules.
Q16. What is the availability check in SAP SD used for?
A. The availability check in SD is used to check delivery capable date of the requested goods when they are required. Availability check for stock, planned orders, and purchase orders is included in it too.
Q17. What are the different types of special sales processes in SAP SD?
A. In SAP SD, you have special process types like consignment, 3rd party, order processing, intercompany sales, and make-to-order production. Each process has a different document flow.
Q18. How important is the copy control of SAP SD?
A. Copy control is how data is copied from one document to another in SAP SD.
E.g, which data should be copied from a sales order to a delivery or from a delivery to a billing document.
Q19. How to prevent holding / Created error while creating a sales order in SAP?
A. SAP SD uses an incompletion procedure to pre-flag missing Sales in order data. The system performs a check for mandatory fields, and until all the mandatory fields have been filled in, the order cannot be processed any further for delivery or billing.
Q20. What is the account determination for revenue in SAP SD?
A. Revenue account determination is the procedure used by SAP SD to determine the Revenue and COGS(Sales and Distribution) G/L Accounts, which are posted during Billing. It is managed by condition records and account keys assigned to condition types.
If you are planning to brush up on your skills before attending your next interview, joining an
SAP SD Course Online or any other
SAP courses online might be helpful in keeping you up-to-date with the latest SAP procedures and best practices.
Tips to Crack a SAP SD Interview
The right preparation, with the right SAP SD interview questions, can really make a difference in your success.
There are other things as well that you need to keep in mind before an interview:
- Know your basics
First of all, be clear with the basics, know the flow of order to cash cycle, condition technique, organisation structure, etc. - Practice actual queries from the real world
Interviewers are interested in knowing how you would react in certain situations; and usually they ask "scenario questions". Be aware of typical scenarios and how SAP SD handles them. - Be clear about document flow
How sales orders, deliveries, and billing documents are connected, you should be able to explain that; that's something almost every interviewer will ask about. - Keep up with SAP versions
SAP is always moving forward. Knowing about some new features, especially for SAP S/4HANA, will help in showing your willingness that you want to grow in this area! - Review your past project experience
Be prepared to discuss your involvement in previous projects if you have experience, and how you addressed and resolved specific business challenges with SAP SD.
Conclusion
SAP SD is a very vast module, and you need to keep yourself updated, so preparing well for your interview is very important. These SAP SD interview questions and answers have laid a solid foundation for you to ace your interview. At
Srijan Institute, get the best industry SAP-based training from expert trainers and get hands-on practical knowledge with industrial case studies, and they help in providing the best placement. So no matter if you are new or experienced, we want to assist you in your career path and in getting the dream job. Keep practicing, be consistent, and success shall be yours.
FAQs Related to SAP SD Interview Questions
Q1. What are the most frequently asked SAP SD interview questions?
A. The commonly asked SAP SD interview questions focus on the order-to-cash process, pricing, delivery, billing, partner functions, and SAP SD organization.
Q2. How can a fresher prepare for the SAP SD interview?
A. Freshers have to start with the basics, core concepts of SAP SD, document flow, and some scenario-based questions on basics through structured SAP training courses.
Q3. Which questions in SAP SD are asked of those who are experienced?
A. Experienced candidates are generally asked specialized questions on topics such as copy control, revenue account determination, special sales process, and their experience in real SAP SD implementations.
Q4. Are scenario-based questions asked in the SAP SD interview?
A. Questions based on scenarios will definitely come in SAP SD interview questions for freshers as well as experienced professionals. They’re really testing your ability to translate knowledge to actual business situations.
Q5. How to crack the SAP SD interview successfully?
A. To crack a SAP SD interview, understand basic processes to advanced, practice after studying a lot of scenario-based questions, keep yourself up to date with SAP S/4HANA, and for the best results, get certified from a good training institute.
