Ultimate Guide to SD Sales and Distribution Interview Questions and Answers

As businesses continue to expand and diversify their operations, the demand for efficient sales and distribution processes has skyrocketed. SAP SD (Sales and Distribution) is a highly sought-after module that facilitates seamless management of sales, customer interactions, and distribution channels. Whether you’re a fresher or an experienced professional, mastering these SD sales and distribution interview questions and answers will elevate your expertise and enhance your chances of securing your dream job.

In this comprehensive guide, we’ll explore a wide range of SD interview questions, categorized based on experience levels, to help you prepare effectively for your upcoming interviews. So, let’s dive in and unlock the secrets to acing those SAP SD interviews!

SAP SD Interview Questions for Beginners

1. What is SAP SD?

   • SAP SD, or Sales and Distribution, is a core module developed by SAP to streamline the processes of billing, selling, shipping, and transportation of products.
   • This module stores customer data, including details about purchased products, enabling organizations to maintain strong customer relationships and make informed decisions.
   • When integrated with other modules like MM (Materials Management) and PP (Production Planning), SAP SD delivers even more efficient and comprehensive solutions.

2. What is the primary function of SAP?

   • SAP (Systems, Applications, and Products in Data Processing) is a leading Enterprise Resource Planning (ERP) software suite utilized by numerous large enterprises to streamline operations and drive business growth.

3. In which areas is SAP commonly used?

   • Initially developed to address software application challenges at IBM, SAP later introduced the SAP R/3 application software, where ‘R’ stands for real-time data processing, and ‘3’ represents Application, Presentation, and Database layers.
   • As SAP gained popularity among large enterprises, additional modules were developed to cover specific business areas, such as Finance and Accounting, Controlling, Production Planning, Materials Management, and more.

4. Name the key components of SAP SD.

   • Customer and Vendor Master Data
   • Contract Handling and Management
   • Transportation of Products
   • Shipping of Materials
   • Credit Management
   • Information System
   • Sales Activities
   • Billing-related Components
   • Foreign Trade
   • Sales Support

5. Explain the organizational structure in SAP SD.

   • SAP SD comprises components like sales areas, distribution channels, divisions, sales offices, and sales groups.
   • The organizational structure follows two main steps:
     • Creating organizational elements in the SAP system
     • Linking each element according to business requirements

6. Describe material management in the SAP ERP system.

   • Material Management is a crucial module in the SAP ERP system, interconnected with other SAP R/3 modules.
   • Its primary function is to record and monitor day-to-day business operations and inventory requirements.
   • All SAP modules are interrelated, ensuring seamless integration and data flow across the system.

7. How is material management associated with SAP SD?

   • Material Management (MM) and SAP SD are closely linked:
     • MM is required to create inbound and outbound updates for sales and distribution.
     • Price details and product availability are obtained from MM but controlled by the sales and distribution module.
     • Orders placed by customers must be extended to the sales area in an organization for successful transaction processing.

8. What are SAP SD modules?

   • SAP SD modules contain all customer data and information about their services.
   • It is an essential module in the SAP ERP system that deals with billing, selling, and transportation of goods and services for the organization.
   • SAP SD comprises several sub-modules for seamless software functionality.

9. Name the sub-modules of SAP SD.

   • SAP SD-BF (Basic Functions)
   • SAP SD-MD (Master Data)
   • SAP SD-SLS (Sales)
   • SAP SD-TBA (Transportation)
   • SAP SD-SHP (Shipping)
   • SAP SD-FTT (Foreign Trade)
   • SAP SD-CAS (Sales Support)
   • SAP SD-BIL (Billing)

10. Explain the sales support sub-module.

    • Also known as CAS (Computer-Aided Selling), the sales support sub-module is a crucial component of SAP SD.
    • Its primary function is to assist companies and organizations in:
      • Building new sales
      • Tracking existing and old sales
      • Maintaining performance records
    • This module enables organizations to monitor work progress and make necessary procedural changes.
    • It also helps identify interested customers who can be contacted via email, ultimately benefiting the business.

Top SAP SD S/4 Interview Questions

1. What is a partner function in SAP SD?

   • Partner functions in SAP SD keep track of all the steps and actions within an organization.
   • These functions allow organizations to maintain records of partners associated with specific customers, their performance, and the details of the parties with whom business is conducted.

2. List the types of partner functions in SAP SD.

   • Partner Type
   • Partner Function
   • Vendor
   • Customer
   • Shipping
   • Forwarding Agent
   • Selling
   • Human Resource
   • Sales Personnel
   • Responsible for Employees

3. Explain sales activity in SAP SD.

   • Sales activity refers to the tasks undertaken by sales personnel to improve sales within an organization.
   • It is one of the activities that take place in the SAP SD module.

4. Name and describe the types of pre-sales activities.

   • Pre-sales activities occur before the actual sale of products to customers, such as:
     • Inquiries from vendors
     • Quotations
   • Post-sales activities occur after the transactions have been completed, including relationship management and support.

5. List some general data control elements.

   • Data control elements are used to determine different types of item categories.
   • They allow for modifications to existing item categories or the creation of new ones.
   • Some general data control elements include:
     • Determining the size of a complete product
     • Identifying acceptable outputs for business transactions
     • Checking if an item is suitable for shipping and billing
     • Verifying if pricing needs to be carried out for an item

6. What is an outline agreement in SAP SD?

   • An outline agreement, also known as an outline deal, is a long-term purchasing agreement signed with a vendor.
   • It outlines the terms and conditions for the materials supplied by the vendors.
   • There are two types of outline agreements in SAP SD:
     • Scheduling agreement
     • Contract

7. What is a contract in an outline agreement?

   • A contract is a formal agreement signed between the customer (ordering party) and the vendor for a specific period.
   • There are two types of contracts:
     • Quantity contracts: The vendor specifies the terms and conditions based on the quantity of material being supplied.
     • Value contracts: The vendor specifies the value for their services, which is documented in the contract.

SAP SD Interview Questions for Experienced Professionals

1. What is a condition table and record in SAP SD?

   • A condition table is a combination of keys used to identify an individual condition record.
   • The system stores data in a specific condition called a condition record.

2. What is an access sequence in SAP SD?

   • An access sequence is a search procedure used to find data for a particular type.
   • It determines the system’s search order path to retrieve the data.
   • An access sequence can consist of one or more access sequences, which are used to search for a valid record relevant to the conditions until it is found.

3. What is pricing by item category in SAP SD?

   • Not all items are necessarily suitable for pricing.
   • If an item is not relevant for pricing, those lines are left blank or empty.
   • Item categories are used to determine the prices of such items.

4. Name the pricing types in SAP SD.

   • To determine the price of a material, the system depends on various predefined price types, also referred to as gross prices.
   • The types of costs in the system include:
     • Price list type
     • Material price
     • Customer-specific price

5. Explain SAP SD product proposals.

   • Proposing a new product is an excellent strategy to improve an organization’s sales performance.
   • The recommended products might be cheaper, more expensive, or similar to the products requested by the customer.
   • The Automatic Product Proposal is a powerful tool used by the system to market products online, capable of matching market requirements.
   • The SAP CRM module is helpful in generating such product proposals.

6. What features does the product proposal support?

   • Product proposals support features such as:
     • Cross-selling, which suggests relationships between different products, up-selling, down-selling, leading products, and sub-associated products
     • Generating product proposals with respect to specific promotions
     • Proposing accessories
     • Creating a top N product list

7. Explain the types of sales orders in SAP SD.

   • Different transactions define various sales document types in the SAP system.
   • Business transactions are grouped into the following categories of sales documents:
     • Sales orders
     • Inquiries and quotations
     • Post-sales documents
     • Outline agreements

8. What is a quota arrangement in SAP SD?

   • A quota arrangement assigns a quota to each supply source for the materials used to produce a product.
   • These materials are typically sourced from various vendors.
   • The vendor offering the lowest quota price typically represents the product production.

9. What do you mean by the special business process in SAP SD?

   • The SAP SD module has the capability to create special business processes, such as customizing products and facilitating personal manufacturing, apart from regular sales orders.

10. Explain consignments processing in SAP SD.

    • Consignments are products owned by the company but located at the client’s premises.

11. Explain shipping in SAP SD.

    • Shipping is a crucial activity within the logistics chain that ensures customer service and distribution of goods.
    • It is used for outbound delivery and other activities like picking and packing goods for transportation.

12. What is picking, packing, and posting a good issue in delivery processing?

    • These procedures are strategically executed in the SAP Warehouse Management System.
    • With access to data in the systems, SAP SD finds the best way to handle goods and avoid disruptions.
    • There are two types of packing: manual and automatic.
    • There are three types of picking: individual pick-up, self pick-up, and pick-up at defined intervals.

13. How is credit management done in SAP SD?

    • After sales have been made, SAP SD needs to maintain a record of the goods sold and money collected.
    • The key features of credit management in SAP SD include:
      • Simple credit check
      • Automatic credit check

14. What is mapping an enterprise structure in SAP SD?

    • An enterprise structure represents the business structure in the real world.
    • Various organizational units, such as clients, distribution channels, company code locations, and more, define the enterprise structure.

15. Describe the transfer order in SAP SD.

    • A transfer order contains information related to transferring materials in and out of the warehouse.
    • It includes data related to storage to execute logical stock transfers within the allotted time frame.

16. What are shipping points in SAP SD?

    • Shipping points are independent organizational entities where a single delivery is processed.
    • At a shipping point, all deliveries and goods are processed and monitored.

17. How can you customize rebate processing in SAP SD?

    • A rebate agreement grants a special agreement to the user based on a specific sales volume over a particular time.
    • To customize rebate processing, follow these steps:
      • Define rebate agreement types
      • Create condition type groups to group different condition types for rebate calculation
      • Create new condition types
      • Add pricing to the newly created conditions by following a procedure
      • Determine accounts
      • Configure GL accounts based on customer group/material group/account key combinations
      • Activate rebate processing for document types, sales organizations, and more
      • Create a rebate agreement
      • Change the pricing procedure
      • Make transactions visible to reflect how the rebate is calculated at the invoice level

18. How can you close backorders in SAP SD?

    • Closing backorders in SAP SD involves the following steps:
      • Create an accurate demand estimate using past purchasing patterns
      • Work with suppliers to track when backordered items become available
      • Increase stocking capacity
      • Diversify suppliers, if possible
      • Proactively communicate with customers
      • Partner with a professional fulfillment company

19. Why should you select SAP over other solutions?

    • SAP helps organizations outsource security, infrastructure, and continuity at lower costs.
    • Customers prefer several SAP platforms for real-time analytics due to their quick processing and solution capabilities.
    • SAP is localized in over 120 countries and operates in 37 languages, making it versatile for collaborating with various companies.

20. How can you explain the access sequence for header conditions in SAP SD?

    • There is no determination at the header level, so you cannot change the access sequence for header conditions in SAP SD.
    • To access the sequence, use a group condition at the item level, as pricing applies at that level.
    • Even though a condition is entered manually on the header, it is still distributed to the item level.

Remember, practice is the key to mastering these SD sales and distribution interview questions and answers. Continuously revise the concepts, stay updated with the latest trends, and approach each interview with confidence. Good luck!