Basic / Conceptual Questions
Q1. What is SAP SD?
A: SAP SD (Sales and Distribution) is a module in SAP ERP that manages sales, customer
orders, delivery, billing, and pricing processes. It integrates with MM (for inventory), FI (for
accounting), and PP (for production).
Q2. What are the main components of SAP SD?
A:
Master Data: Customer Master, Material Master, Pricing Conditions, Customer-Material
Info Record
Sales: Sales Order Management, Quotations, Contracts
Shipping & Delivery: Delivery Document, Picking, Goods Issue
Billing: Invoice Creation, Credit/Debit Memo
Credit Management
Q3. Di erence between SAP SD and MM?
SD: Manages sales and distribution (outgoing goods).
MM: Manages procurement and inventory (incoming goods).
Q4. What is a Customer Master?
A: Record containing all information about a customer (general data, company code data, sales
area data) used for sales transactions and billing.
Q5. What is a Sales Organization?
A: An organizational unit responsible for sales and distribution of goods/services, for
reporting purposes. A company can have multiple sales organizations.
Q6. What is a Distribution Channel?
A: Path through which goods/services reach the customer (e.g., retail, wholesale, direct sales).
Q7. What is a Division?
A: Product line or business area, e.g., Electronics, Furniture, Software.
Q8. What is a Sales Area?
A: Combination of Sales Organization + Distribution Channel + Division. It defines the sales
process for a customer.
Configuration / Setup Questions
Q9. How to create a Sales Organization?
A: T-code: OVX5
Assign to company code, define organizational details.
Q10. How to create a Customer Master Record?
A: T-code: XD01 (Centrally) or VD01 (Sales Area)
Enter General Data, Company Code Data, and Sales Area Data
Q11. How to configure Pricing Procedure?
A: T-codes: V/08 (Pricing Procedure), V/06 (Condition Type), V/07 (Access Sequence)
Steps:
1. Define condition types (PR00 – price, discount, tax)
2. Assign condition types to pricing procedure
3. Assign pricing procedure to Sales Area, Customer Pricing, Document Pricing
Q12. How to configure Credit Management?
A: T-codes: FD32 (Change Credit Limit), FD33 (Display Customer Credit)
Assign credit control area to customer & sales area
Define credit limit and check rules
Q13. How to define Delivery Types and Billing Types?
Delivery Type: VL01N configuration for standard delivery, stock transfer delivery
Billing Type: VF01 configuration for invoice, credit/debit memo
Transaction / Process Questions
Q14. Explain Order-to-Cash (O2C) process.
A:
1. Sales Inquiry / Quotation – Customer requests price/availability
2. Sales Order – Confirm customer order (T-code: VA01)
3. Delivery / Picking / Packing – Prepare and ship goods (VL01N)
4. Goods Issue – Post delivery to inventory (VL02N)
5. Billing / Invoice – Invoice customer (VF01)
6. Payment Receipt – Post incoming payment in FI (F-28)
Q15. How to create a Sales Order?
A: T-code: VA01
Enter Customer, Material, Quantity, Delivery Date, Sales Area
System checks availability (ATP)
Q16. How to create a Delivery Document?
A: T-code: VL01N
Enter Sales Order, pick items, post Goods Issue
Q17. How to create Billing Document?
A: T-code: VF01
Reference Sales Order or Delivery
Post Invoice → updates AR in FI
Q18. How does SD integrate with MM and FI?
MM: Delivery triggers Goods Issue → updates stock
FI: Billing → updates AR, revenue accounts
CO: Revenue/Cost can be posted to Profit Center
Scenario-Based / Problem-Solving Questions
Q19. Customer complains about wrong delivery. How to check?
A:
1. Check Delivery Document (VL03N)
2. Check Sales Order (VA03)
3. Check Goods Issue posting and stock levels
Q20. Customer invoice not posted due to credit block. What to do?
A:
1. Check credit status in FD32
2. Increase credit limit or release block
3. Post invoice (VF01)
Q21. How to check open sales orders?
A: T-code: VA05
Filter by status: Open / Partially Delivered / Not Billed
Q22. How to handle partial delivery?
A: System allows partial delivery if items are available
Split delivery in VL01N
Post Goods Issue only for available items
Invoice partial delivery
Q23. Di erence between Delivery and Billing?
Delivery: Physical movement of goods, updates stock and CO
Billing: Financial document for customer, updates AR and revenue
Advanced / Tricky Questions
Q24. What is Schedule Agreement?
A: Long-term agreement with vendor or customer specifying delivery schedule and quantities
over a period.
Q25. What is a Credit Memo / Debit Memo?
Credit Memo: Reduces customer liability (e.g., price adjustment, returned goods)
Debit Memo: Increases customer liability (e.g., additional charges)
Q26. What is Output Determination?
A: Determines how documents are communicated (print/email/fax) to customers/vendors in
SD.
Q27. Di erence between Standard Order and Rush Order?
Standard Order: Normal order processed through full O2C cycle
Rush Order: Requires immediate delivery, may bypass certain checks
Q28. What is ATP check?
A: Available-to-Promise checks material availability before confirming delivery date in sales
order.