Skip to end of metadata
Go to start of metadata

Frequently Asked SD Interview Questions.

SAP SD Corporate Structure Question

In R/3 you can represent a company's structure by defining and assigning corporate structure elements. What is the purpose of doing that?

Enterprise organization diagram. Chart showing the organizational structure of an enterprise, its organization units and how they are related. A combined structure can be created from the point of view of accounting, MM, SD. This structure forms a framework in which all business transactions can be processed. 

Which three organizational elements make up a sales area and briefly explain their function?

Sales organization: An organizational unit that sells and distributes products, negotiates terms of sale, and is responsible for these transactions.

Distribution channel: Channel through which salable materials or services reach customers.  Typical distribution channels include wholesale, retail and direct sales. You can assign a distribution channel to one or more sales organizations. 

Division: Product groups can be defined for a wide-ranging spectrum of products. For every division you can make customer-specific agreements on, for example, partial deliveries, pricing and terms of payment. Within a division you can carry out statistical analyses or set up separate marketing. 

Name the three internal organizational elements within a sales organization and briefly explain their function.

Sales Office. Geographical aspects of the organization in business development and sales are defined using the term sales office. A sales office can be considered as a subsidiary.  Sales offices are assigned to sales areas. If you enter a sales order for a sales office within a certain sales area, the sales office must be assigned to that area.

Sales Group. The staff of a sales office may be subdivided into sales groups. For example, sales groups can be defined for individual divisions.

Salespersons. Individual personnel master records are used to manage data about salespersons. You can assign a sales person to a sales group in the personnel master record.

What does the term "business area" refer to and how can it be used?

Business  Area. The system posts costs and revenue according to the business area.

 The business area can be equivalent to the :  sales area (if the accounts are to be posted according to sales) plant/division (if the accounts are to be posted according to products)  
The business area is defined in Customizing for Sales.

o Business area. A unit in an enterprise, grouping product and market combinations as homogeneously as possible for the purpose of developing unified business policy. 

o Financial Accounting (FI). A business area is an organizational unit within financial accounting which represents a separate area of operations or responsibilities within an organization. Financial accounting transactions can be allocated to a specific business area.

Briefly explain the relationship between sales organizations and company codes.

Many to One.

What is the central organizational element in purchasing?

Purchasing Organization.

Explain the relationship between sales organizations and plants.

Many to Many.

Explain the relationship between sales organizations, plants and company codes.

Many to Many to One.

Can one business area be assigned to several company codes? Which (sub) module of SAP could make business areas obsolete?

Yes in CO .

What is a credit control area? What relationship exists between credit control areas and company codes?

Credit control area. Organizational unit in an organization that specifies and checks credit limits for customers. A credit control area can include one or more company codes. It is not possible to assign a company code to more than one credit control areas. 

Which organizational element is central in shipping? Give a definition of it.

Shipping Point: Organizational unit at a fixed location that carries out shipping activities. A shipping point could, for example, be a company's mail department or a plant's rail depot. Each delivery is processed by only one shipping point. 

Give a definition of plant (in SAP).

Organizational unit within Logistics,  serving to subdivide an enterprise according to production, procurement, maintenance, and materials planning aspects. 

A plant is a place where either materials are produced or goods and services provided. 

Classification: Business object 

Structure: A plant can assume a variety of roles:   
As a maintenance plant, it includes the maintenance objects that are spatially located within this plant. The maintenance tasks that are to be performed are specified within a maintenance planning plant.   
As a retail or wholesale site, it makes merchandise available for distribution and sale. 

As a rule, the plant is the organizational unit for material valuation. 

The preferred shipping point for a plant is defined as the default shipping point, which depends on the shipping condition and the loading condition.   
For the placement of materials in storage (stock put-away), a storage location is assigned to a plant. The storage location depends on the storage condition and the stock placement situation. 

The business area that is responsible for a valuation area is determined as a function of the division. As a rule, a valuation area corresponds to a plant.   
Can you assign two different sales organization to the same company code?

To what do you assign distribution channels and divisions?

Sales Organizations.

What are the highest organizational units in SD, MM.PP,FI,CO?

SD: Sales Organizations.
M: Plant 
PP: Plant
FI: Company Code 
CO: Controlling Area

Can you further subdivide a plant? If yes into what?

A plant can be subdivided into storage locations, allowing stocks of materials to be broken down according to predefined criteria (e.g., location and materials planning aspects). 

A plant can be subdivided into locations and operational areas. Subdivision into locations takes geographical criteria into account, whereas subdivision into operational areas reflects responsibilities for production. 

Can a sales organization sell from a plant belonging to a different company code?

How many shipping points can you assign to a plant?

How many shipping points can you assign to a sales organization?

If you have a warehouse management system active, to what would you assign the warehouse number?

Plant & Storage Location.    Sales and Distribution - Transfer of Requirements The MRP department is informed about the quantities and deadlines by which incoming orders should be delivered. The system checks the availability of the goods based on the requested delivery date of the customer and creates MRP records which contain all necessary information for passing on to planning. It ensures that the goods are available in time for the delivery. Materials planning transfers the reported requirements and creates orders or purchase requisitions from them etc. For controlling transfer of requirements, you have to carry out the following steps: 1. Each requirement type has to be allocated to one requirement class only.2. The transfer of requirements must be switched on at requirements class level, the sales documents at schedule line level.3. You must define a check group. It is possible to have this check group proposed for the initial creation of a material master record.4. Note that a plant must exist for transfer of requirements to be carried out at document item level. OVZG      - Requirement class  It specifies the following points: - whether an availability check and a transfer of requirements is carried out for a transaction (for sales documents, fine tuning using the schedule line category is possible),- whether the requirements are relevant for MRP,- the allocation indicator from the sales view which controls the settlement of customer requirements with requirements - whether an item is to be settled to an auxiliary account assignment,- the settlement profile,- the results analysis key. (Use transaction SM30 for V_* configuration)OVZH      - Requirements typeV_TVEPZ_V - Assignment of requirement type to TransactionV_TVEP_V  - Schedule line category OVZ2      - Define Checking GroupV_TMVFU   - Define the checking group that the system proposes when you create a new material master record. You can overwrite the default value for the checking group in the material master record.    
Define whether the Material can be used at which Sales and Distribution process

Here you define how the system responds when entering a sales and distribution document  with this material in the different Sales and Distribution Process Flow.. 

You can use the material status, for example, to prevent orders from being entered for 
parts to be discontinued.


To temporary block the creation of Sales Order for a certain materials.

Set the material status parameters in transaction SM30, Table Views  V_TVMS.

Click Maintain and double click into the Materials Status code.

You can set three types of response for each Sales and Distribution process :-

1.  no dialog 

2.  warning when entering the document 

3.  error message (that is, the sales and distribution document cannot be entered on 
     the basis of the material status) 

Define Tax Determination Rules

You specify the valid tax types in transaction OVK1.  More than one tax type can be defined for a country by defining the sequence.  
The SAP System determines the taxes automatically within pricing.

In the standard SAP R/3 System, the elements of tax calculation are predefined 
(for example, tax condition type "MWST" for taxes on sales and purchases).

Assign the plant for Tax Determination in OX10, using the country key, the SAP System 
recognizes which tax type is valid for a plant and thus which taxes are relevant when 
creating an SD document.

Define the Customer Taxes in OVK3, you will maintain the tax code in Customer Master.

Define the Material Taxes in OVK4, which will then be maintain in Material Master.  
For example :-

MWST     GST            0    Tax Exempt
MWST     GST            1    Liable for Taxes

Now, you define the Tax Determination in VK12.

VK12 - Domestic Taxes/Export Taxes   
Condition Type    MWST

Customer Taxes    Material Taxes     Rate Taxes
         0                              0                  0 %
         0                              1                  0 %
         1                              0                  0 %
         1                              1                  9 %

In this example, if both the Customer Master and Material Master Tax code is 1, Tax will be included when you create the Sales Order.

Link Between SAP SD, MM & FI 

The link between SD and MM :-

1. When you create sales order in SD, all the details of the items are copied from Material master of MM.

2. MRP and availability check related data is also taken from MM although you control this data in SD also.

3. While you create inbound/outbound delivery with reference to a sales order, the shipping point determination takes place with the help of the loading group, plant data, shipping conditions etc. This also refers to Material Master.

4. The material which you are entering in a sales order must be extended to the sales area of your sales order/customer otherwise you cannot transact with this material.

There are many such links between SD and MM.

Now the link between SD and FI :-

1.      Whenever you create a delivery with reference to a sales order, goods movement  takes place in the background. eg. In case of standard sales order, you create an outbound goods delivery to the customer.

      Here movement 601 takes place. This movement is configured in MM. Also, this   movement hits some G/L account in FI. Every such movement of good s hits        some G/L account.

2.         The accounts posting in FI is done with reference to the billing documents             (invoice, debit note, credit note etc) created in SD. Thus this is a link between SD         and FI

3.         Tax determination: In case of a tax determination also, there is a direct link            between SD and MM

How to do configuration for Credit Management function?

Settings for determining the credit control area of a document.
The settings of items 1 - 4 are taken into account according to their priority.
The credit control area found is stored in field VBAK-KKBER.

1. Transaction OB38
   Check which credit control area is assigned to the company code.
   Company code:
   Credit control area:

2. Transaction OVFL
   Check which credit control area is assigned to the sales area.
   Sales area:
   Credit control area:

3. Transaction XD02 or VD02
   Check which credit control area is assigned to the payer.
   Credit control area:

4. Transaction SE37
   Is user exit EXIT_SAPV45K_001 being used?

5. Transaction OBZK
   For the settings under items 2 - 4, field "All company codes" must be marked in     

   OB45, or the credit control area must be entered under the relevant company code in

   T001CM of the credit control areas allowed.
   Company code:
   Credit control areas allowed:

6. Settings for the credit checks

7. Transaction OVAK
   Which settings do exist for the sales document type used?
   Sales document:
   Check credit:
   Credit group:

8. Transaction OVAD
   Which settings do exist for the delivery type used?
   Delivery type:
   Credit group for delivery:
   Credit group for goods issue:

9. Transaction OB01
   Credit management/Change risk category
   Definition of the risk category for each credit control area. This risk category can be
   assigned to a credit account by using Transaction FD32.

10. Transaction OVA8
    Here, the individual credit checks for key fields
    o credit control area
    o risk category
    o credit group are set. Take these key fields from the above settings and go to the detail
      screen. In particular, check whether fields "Reaction" and "Status/block" are set
      correctly. To carry out follow-up actions in case of a credit block, the credit check
      status must be set (field "Status/block").

11. Transaction FD32
    Credit master data for the payer of the relevant document.
    Credit account:
    Credit limit:
    Risk category:

12. Settings for updating the credit values Update of the credit values is required for the

       limit check (static or dynamic credit limit check).

13. Transaction OVA7
    Update of the credit value is active for the corresponding item type if the check box is

    marked. This field corresponds to  field "Active receivable" in Transaction VOV7.
    Item type: 
    Active receivable:  
14. Transaction V/08, Pricing

       In the pricing procedure used for pricing, subtotal "A" must be entered in a line for
        determining the credit value (mark the pricing procedure and double click on             "Control").Usually, the net value plus taxes is used. This way the system is determined to         use this subtotal for credit pricing. The credit price is stored in field VBAP-CMPRE  and used for update and credit check. You can find the used pricing procedure of the order            under "Item -> Condition -> Analysis".      Pricing procedure:     Line with subtotal = 'A':

15. Transaction OB45
    Which update group (field "Update") do you use in the relevant credit control area? The
    default setting is "12". If you use another update group, check whether this is fine with
    you. If you open an OSS message, please tell us the alternative update group.
    Credit control area:

16. Transaction OMO1
    Which kind of update did you choose for structure S066? 
     In any case, "Synchronous update (1)" has to be chosen as the kind of update. 
     All other settings will lead to errors.


 Master Data
Q: Some materials have been blocked for procurement and production. Even though deletion flag is set for a material/plant level, the order can be still entered ( with a warning message). Is there a way to block such transactions for a material flagged for deletion?

A: Sales Status field in the sales organization view of the material master may be used to block any transaction for the material.

Q: We can define our own exchange rate types and use them instead of the defaulted types, 'M', 'B' and 'G'. How can we overwrite default types in SD?

A: Exchange rate gets copied from the customer master record. Exchange rate types are to be maintained for the customer in the sales screen of the customer master record. Shipping
Q: The PL00 condition is fine in delivery. But when we try to print to either the screen or printer, an error V1032 occurs. Why?

A: In order to use the Packing list PL00 (packing slip in delivery) you must do 'Packing' in the delivery note (edit->packing)

Q: we have to enter a shipping point while creating a delivery. Is it possible to create delivery without shipping points?

A: When you are releasing a sales order, choose Sales document -> Subsequent functions-> Create delivery, then the shipping point will be brought in from the sales order. In all other scenarios you have to key in the shipping point. The above described scenario will only work if all items on the sales order are to be shipped from the same shipping point.    


Q: SAP allows a non-inventory item and an inventory item to be in the same document till delivery but splits at the time of creation of billing document. Can we combine a non-inventory item with an inventory item in one invoice? Can we treat it as a value item in sales order so that it is priced and then make it as a text item in delivery documents so that it appears in the same invoice and does not split?

A1: Make the non-stock material deliverable, but not pickable. Both items will carry into the delivery, and therefore appear on the same invoice.

A2: Change the copy rule for orders->invoices and deliveries->invoices to specify that invoice combination is permitted. However note that for system to create combined invoices, PO number, payment terms, sales organization, and distribution channel must be identical. Else undesirable combinations may be created by the system. 

Pricing Conditions

Q: It is impossible to price at the material level (matnr) , when a material has a pricing reference (mvke-pmatn) set up against it in the master data. Pricing always look for the pref, even if a price is set up against the material and not the pref. How can we price by material and pref?
A: The field used to look up at the price is defined in Access sequence. You may find a step with PMATN as material number. If you insert a step with MATNR then the system will first look for the material, if not found (use the exclusion tick box) it will look for the pref.
Q: We generated a new condition table. Assigned the condition to access sequence. Created a condition record. Access sequence is assigned to the output type. But when we create a billing document, output screen comes up blank for the output type. When we look up Determination Analysis, we get an error "Note 524 Access not made (Initialized Field)". What else is required to be done?

A: Assign output determination procedure to the header of the document and the output type. 
Q: How can we set up to have the VAT# be accepted in the Ship-To Master File Data Control screen?
A: IMG->Fin. Acct.>AR and AP ->Customer acct>Master Record -> Prepare to Create Customer-> Define Acct. Group. 
Q: We want to explode Bill of Material automatically at time of Order entry and explode an Equipment BOM in the sales order. What are the setting required?
A: Use an item category that is configured for bills of material for having a sales BOM to explode automatically.

Standard SAP item categories are :

TAQ - Pricing and inventory control take place at the BOM header level
TAP - Pricing and inventory control take place at the BOM item level
These can be automatically derived using the item category groups ERLA and LUMF, respectively. 
Q: How can we make the Customer Group 1 (or 2, 3, 4, 5) a mandatory field?
A: Logistic General-> Logistics Basic Data: Business Partners -> Customers -> Control -> Define account groups and field selection for customer

Choose Customer Acct. GR. (double-click). -> Field Status: Sales data (double click) -> sales (double click) .Check the radio button against Customer Gr as REQ. ENTRY. Save the settings to make customer GR entry mandatory . 
Q: Is there an user exit to copy the data into planning table?
A: Use user exit MCP20001 and include ZXSOPU01. 


Q: We get a report screen: "Goods issue: Problem Log" during the delivery process when activating Post Goods Issue button. We want to include our own error message to this list if the selected batch is not on a customer defined table. What is the best way?

A: Try User exit - USEREXIT_SAVE_DOCUMENT_PREPARE Difference between Condition Type

Please explain the difference between Ek01 ( Actual Cost) and EK02 Calculated Cost.

These are the condition type that will display the results of the unit costing for certain  type of sales document. 

If you use this condition type, the result of unit costing is issued to the first position on the conditions screen for the item. The value can be used as a basis for price determination. 

If you use this condition type, the result of unit costing is simply a statistical value which you can compare with the price. 

Please note the following points  :

1) The condition type must have condition category 'Q' (costing). 

2) The condition type must agree with the condition type defined for unit costing in the pricing procedure. 

Q. I have a customer who is being offered two discounts ie k007 and k005, now I want to exclude k007 for the next 2 orders or so? I have set the exclusion indicator for the condition type, but still the condition is being accepted when I create a sales order.  Am I missing something, how do I do it?

Need to change the validity of the condition record for the condition type K007 defining it not valid for that particular 2 months.  And also the settings of the Requirements as it is correct that it overrules the exclusion.   Accumulate the amount of condition types in accounting document

To accumulate the amount of condition types in accounting document without affecting the pricing display in billing document.

As an illustration :-

ZPXX   3500 
ZDXX  1000- 
ZWXX   500- 

(all condition types are shown separately in pricing view) 

Dr   Vendor 2000 
Cr   Sales    2000  (ZPXX - ZDXX - ZWXX

One way to do it is :-

Mark the condition types you want to group as statistical and remove the account assignment key. 

Create a subtotal in your pricing procedure that will add them together and put in the account assignment key for it. This way the individual components will still display on your pricing screen but FI will only get one posting. 
  Determine sales price with shipping point (Scenario)

You are trying to use shipping point as a key field (with sales org. distribution channel and ship-to party together) to determine the sales price. 
You created a condition table with the above key fields, and maintained the relevant setting (access sequence, condition type and pricing procedure). 
There is an error message in the sales order pricing analysis ("access not made" in the shipping point field). 
In the access sequence, you found that the shipping point field's document structure is KOMK.
Can you put to item level field in the condition table and access sequence? 

Structure KOMK refers to header of the sales order, but shipping point of course is on item level. 

You'll have to do some settings to reach your goal, it is possible. 

Step 1 
Append structure KOMP. Do this by changing through SE11 the table KOMPAZ
This is the include for structure KOMP
Add a component e.g. ZZVSTEL with component type VSTEL. 
Save, activate. 
If you want to make more points, assign search help H_TVST to the component. 
Ask a programmer if you don't understand this part. 

Step 2 
Change user exit MV45AFZZ. Say there that field ZVSTEL should be filled with information from your shipping point. 
The coding should be like tkomp-zzvstel = vbap-vstel. 
Save, generate. 

Step 3
Make a new table as you did before, but first maintain your new field in Condition: allowed fields. 
When you create your new table you will see you have two shipping points. 
With the button technical view you can check which one ZZVSTEL or VSTEL. 

Step 4
Finish with the steps you did before. That was ok. 

1 Comment

  1. Dear Author,

    thank yo so much for your awesome job for SD consultants.

    but i found there is one error in your list.

    SAP FAQ (SD)

     Master Data

    Q: We can define our own exchange rate types and use them instead of the defaulted types, 'M', 'B' and 'G'. How can we overwrite default types in SD?

    A: Exchange rate gets copied from the customer master record. Exchange rate types are to be maintained for the customer in the sales screen of the customer master record. Shipping

    this answer is not entirely correct. the field is in customer master data - sales area date - sales. not shipping.

    thank you anyway.