Important SAP SD questions

1. 1. What isalternative calculation type?- Done
2. What isalternative base value –Done
3. What isRoutine?Where itiswritten? – Done
4. What isfree goods?Tell the configurationinbrief? –Done
5. What ispricing?Explain16 fieldsindetails? –Done
6. What will youdoto write anyconditiontype value togetprinted onInvoice –Pickup the
VBRK_KNUMV and passit to KONV_KNUMV andthenselectthe condition type andpickup
the value fromKONV_KWERT
7. Tell me aboutsmart form?
– SAP Smart Forms is used to create and maintain forms for mass printing in SAPSystems.As output
medium SAP Smart Forms supporta printer, a fax, e-mail,or the Internet (by using the generated XML
output).
8. What iscreditmanagement?Whatissimple andautomaticcreditcheck?-done
9. Explainthe stepsindetailsforcreditmanagementconfiguration?-done
10. What are conditiontype table andconditionrecordtable –KONP&KONV
11. How free goodswill be checkedforMRP?
12. How Free goodswill be givenfree of charge ,Withoutaddingextraline itemandadjustingits
price inmain item?=done
13. What isconsignment?Doesdeliveryexistinconsignment? –Done
14. What iscreditmemo& debitmemo –G2 and L2 & G2N and L2N
15. What isthe returnprocess?Where the stockof the PGR goes? – Done
16. Stock type of returngoods?
17. Conditionsupplement?
18. How isitemcategorydetermined?
19. What isitemcategorygroup & General Itemcategorygroup?
20. What isuser exit?Inwhichexityouhave workedon?
21. What issalesarea?
22. How isshippingpointdetermined?
23. How isroute determined?
24. What isIDOC? What isIDOC status?
25. What isthird partysales?Explainwithstepsandconfiguration?
26. What isintercompanySTOand intracompanySTO ?
27. What isthe difference betweenIntercompanySTOandintracompanySTOtechnically?
28. What is Outputtype?Explainoutputtype determinationsteps?
29. What isSchedule line category?Tcode forSchedule Line category? –vov6
30. What isbackward SchedulingandforwardScheduling?
31. What isTOR andavailabilitycheck?
32. How Accountdetermination Happen?
33. What are documentsgeneratedaftersavingInvoice?
34. What are documentsgeneratedafterPGI?
35. How isPricingdetermined?
36. What isMaterial exclusion?Explainthe same indetailsstepbystep?
37. What iscopy control?
38. DoesAccountingDocumentGeneratedin STO?Whatare movementtypesUsedinSTO?

2. 39. How to stopPGI viacreditmanagement?
40. What isImportantFieldsof Accountdetermination?
41. What isan accesssequence?How itiscontrolled?
42. How isthe return Processhappensinyourcompany?
43. What isinvidual Purchase order?
44. What isconditionExclusion?Explainconfigstepsbystep?
45. What isdeliveryitemcategory?
46. If there are twodifferentconditiontype PI00,PI01maintainedattwodifferentaccess
sequence orsame accesssequence thenif we have todeactivate one conditiontype when
othercome , how will youdoit?
47. Standardoutputtype?
48. What doesexclusiveindicatordoinaccesssequence?
49. Whichuser exitwill be usedtoaddfieldincatalogue if itisnotavailable instandard one?
50. How valuesare calculatedinDynamiccreditcheck?
51. Can we offercreditdaysindays/week/month?
52. What isincoterm?
53. What isdifference betweennormal GLaccountand reconciliationaccount?
54. What isthird partysales?Explainprocessindetails?
55. What iscash sales& Rush orders? Withitsitemcategory
56. What are batch jobs?
57. Documenttype,Itemcategorytype & BusinessProcessforconsignment
58. SAPSD basics
59. Billingplantype
60. Why salesorganizationsare definedincompany?
61. What isconditionupdate?withexample
62. What isconditionindex withexample
63. SD-FICOScenerio,SD-MMScenerio
64. Effectsof makingPGI andcreatingInvoice
65. Conditiontype detailscreen
66. Itemcategorydetail screen
67. Itemcategoryassignment&schedule linecategoryassignment
68. PricingScenario – can one conditionrecordhave twoaccesssequence,Needtodeactivate
one conditionoutof two thenwhatto do?
69. Can soldto party be shipto party
70. Conditiontype detailscreen
71. Group condition Scenario
72. Conditionexclusion
73. Material Listingandexclusion
74. Material determination
75. What settingwe have todo to getdirectprint outof invoice inOutputdetermination
Procedure
76. TablesforCustomerpartnerfunction,Pricing,schedule line
77. Itemcategoryfor quotation,inquiry,
78. G/L account assignmentforTaxes

3. 79. Tell me the reportwhich will give yousummaryof the invoiceswhoseaccountingentrynot
done
80. Configurationfornotallowingtocreate accountingDocument
81. Usage where itismaintainedanduse of it
82. Effectof invoicingonaccount ?
83. What isupdate group inCreditManagment?
- The type of update chosen controls when the values of open sales orders, deliveries and billing
documents are updated depending upon the type of document being generated. One of the following
update groups can be chosen as available in standard SAP
 Blank – If the field is left blank, the SD documents are ignored and only open receivables and open special G/L items
are used for calculating credit exposure.
 000012 – When a new order is created, the open order value is added to the credit exposure. When the order is
delivered, the open order value is subtracted and the open delivery value added to the exposure. On billing the
delivery, open delivery value is subtracted and the open billing value is added to the exposure. When billing posts to
accounting, the open billing value is subtracted and the open A/Rvalue added to the exposure. The exposure is
finally reduced w hen the cash is applied against open A/R.
 000015 – Calculates exposure w ithout considering open sales order value. When the order is delivered, the open
delivery value is added to exposure. On billing the delivery, open delivery value is subtracted and the open billing
value is added to the exposure. When billing posts to accounting, the open billing value is subtracted and the open
A/R value added to the exposure. The exposure is finally reduced w hen the cash is applied against open A/R.
 00018 – This is relevant for non-delivery-relevant orders only. When a new order is created, the open delivery value
is added to the credit exposure. When the order is billed, the open delivery value is subtracted and the open billing
added to the exposure. When billing posts to accounting, the open billing value is subtracted and the open A/R value
added to the exposure. The exposure is finally reduced w hen the cash is applied against open A/R.
CreditManagement:
CREDIT MANAGEMENT
A credit limit may be a customer's credit limit, which is the permittedlimit of value of openitems, such as invoices not yet paid, plus thevalue of open sales
orders.
- The credit limit is thetotal combined valueof the following documents:
- Net value of sales order
- Open Sales order: order created, but not delivered
- Open deliveries: delivered, but not invoiced
- Open billing doc: value of billing doc, which has not yet been forwarded toaccounting
- Open items: forwarded toaccounting, but not settled.
Types of Credit Check
- Simple Credit Check
- Automatic Credit Check
o Static
o Dy namic
Simple Credit Check:
SPRO- IMG- SD- Basic Functions- Credit Mgmt/ Risk Mgmt- Simple Credit Check- Assign Credit Check to Doc Types.
- Based on sales doc types
- It will check all the above-mentioned docs & if thecredit limit exceeds, thesystem responds in the way defined by you in the configuration menu.
- Cannot differentiate according to customer
3 ways to Control the Simple Credit Check:
- A: warning
- B: error message: thedoc cannot be saved
- C: warning message with delivery block: the doc canbe saved but is automatically blockedfor delivery.
Automatic Credit Check:
This credit mgmt control is maintained by using the automatic credit control functionality. The automatic credit control divides the sales doc types, the
deliv ery doc types, & goods issue into specific credit groups. It also uses the customer's risk category as assignedto theCMD of the payer & assigns an

4. outcome proc to the combination of the above 2 objects, i.e. the credit group & customer risk category along withthe credit control area. The definition of
customer's risk category is carried out in the finaccounting module.
A customer's risk category is a groupingcategory that controls the credit check when automatic credit control takes place. Thus one can assign high-risk
customers to risk category for e.g. A01, medium risk to B01and low risk to C01.
Automatic creditcheckdivides customers in to 3 categories:
- High-risk customers,
- Low risk customers &
- Medium risk customers.
A credit check can only occur at 3 places: Credit Group
- Sales order: for high risk customers
- Delivery: for medium risk customers
- Goods Issue: for low risk customers
Credit Control Area (CCA): highest organizational element in credit management. A credit control area is an organizational unit that is comprised of one or
more company codes. A company code can have no more thanone credit control area. Defined by FI.
Menu Path to createCredit Control Area: OB45: FI people.
SPRO- IMG- Enterprise Stru- Definition- Fin Accounting- Define Credit Control Area
Credit Control Area Description
0001 Credit control area 0001
1000 Credit control area Europe
Menu Path to Assign Company Code to Credit Control Area: OB38: FI people.
SPRO- IMG- Ent Stru- Assignment- Fin Accounting- AssignComp Code to CCA
- It is possible toassign Credit Control Areato a Sales Area. This is more specific assignment than the assignment toCompany Code.
Company code Company name City Credit Control Area Over write CCA
Menu Path for Defining Risk Categories: OB01: FI people
SPRO- IMG- Fin Accounting- Account Receivables & Payables- Credit Mgmt- Credit Control Account- Define Risk Categories.
Risk Category CCA Name
001 4500 Low risk
002 4500 Mediumrisk
003 4500 High risk
Menu Path for defining CreditGroups: OVA6
SPRO- IMG- SD- Basic Function- Credit Mgmt/ Risk Mgmt- Credit Mgmt:
- Define Credit Groups: OVA6
- Assign Credit Groups to Sales Doc's & Delivery Doc's
o Credit Limit check for Order Types: OVAK
o Credit Limit check for Delivery Types: OVAD
- Define Automatic Credit Control: OVA8
Define Credit Croups:OVA6
One merely creates a credit group for each differentiation in the doc type. Youenter the credit groups when you configure the sales doc types for credit
management & define the automatic credit check. The f ollowing credit groups are containedin the standard R/3 system:
- 01: credit group for sales order
- 02: credit group for delivery
- 03: credit group for goods issue
CG (Credit Group) Doc Credit Group
01 Credit group for sales order

5. 02 Credit group for delivery
03 Credit group for goods issue
Assign Sales Documents & DeliveryDocuments:
Sales Doc
Type
Descp Check Credit Credit Group
OR Std
Order
D 01
Delivery
Type
Descp Del Credit
Group
GI Credit
Group
LF Delivery 02 03 - automatic credit check should be carried out.
- Specify a Credit Group
- Specify a Credit Group for the Delivery Type for which you want to carry out a credit check
- Specify a Goods Issue Credit Group for the Delivery Type for which a credit check is to be
carried out for goods issue.
- SIMPLE CREDIT CHECK CANNOT BE ASSIGNED TO DOCUMENTS.
Define Automatic Credit Control:
One can now assign settings to the combination ofthe Credit Control Area, the Customer Risk
Category & theCredit Group.
CCA Risk Cat Credit Group Credit Control
4500 001 01 Low risk sales orders
4500 001 02 Low risk deliveries
4500 001 03 Low risk goods issue
4500 002 01 Mediumrisk sales orders
4500 002 02 Mediumrisk deliveries
4500 002 03 Mediumrisk goods issue
4500 003 01 High risk sales orders
4500 003 02 High risk deliveries
4500 003 03 High risk goods issue
Select line item and go todetails, you can decide whether to do Static or Dynamic Credit Check. Credit Horizon canalso assigned here. Additional function
checks canbe performedhere:
- A credit check when the maximum document value is exceeded.
- A credit check when changing critical fields.
The risk category assignment occurs in the sameplace as the customer's credit limit, which is the customers credit management screen. That is, therisk
category is assigned to the customer by the Finance in transactioncode FD32.
The customer credit master record is divided in to 5 views:
- Overview Screen: gives an overview of credit settings in relation to the customer, includinghis credit limit, credit exposure, the %tage of credit limit
used, his payment data & his risk category.
- Address: view gives thecustomers address details as they appear in CMD
- Central Data: is a view that shows the total credit limit the customer can receiveacross all credit control areas as well as the maximum limit he can
receiv e in one credit control area.
- Status: view shows the customer's actual individual details according to particular CCA being investigated. This includes his credit limit, percentage

6. used, credit exposure, risk category, whether he is blocked dueto credit or not.
- Payment history: view displays the payments madeby thecustomerfor a particular credit control area where a comp code is assigned.
Static CreditCheck Dynamic CreditCheck
Net Doc Value Net Doc Value
Open Order Open Order
Open Delivery Open Delivery
Open Billing Open Billing
Open Item Open Item
Compares the total combined values ofthe above-mentioned documents to
credit limit.
Plus credit horizon. Compares the values ofthe following documents to credit limit +
credit horizon.
Credit horizon has an attached time period that states that the system is not to include sales orders in the total of outstanding items created after
that specified period i.e. for the purpose of evaluating credit, you want the systemto ignore all open ordersthat are due for delivery after the
horizon date. Maintained for low& medium risk customers.
Update Groups
Basically it is a info structurewhere system stores all the data about credit limit. The credit relevant data is updated in a info structure, where it is accessed &
updated. Thus each automatic credit control must be assigned an update group.
- Update Group000012
- Update Group000015: delivery & billing
- Update Group000018: sales order, delivery & billing.
Update group 000012, updates at:
- Sales doc: increasedorder value
- Delivery: decreased order value& increased delivery value
- Billing: decreaseddelivery value & increased billing amount
- Inv oice: decreased billingamount & increased open item value.
Release Blocked Sales Order/ Deliveries:
- VKM3: sales order
- VKM5: delivery
- VKM4: both
One can see the offending document. Noteon the right hand side, the 'Status Field'. This shows the check, the doc failed. If this fieldis empty, the doc did
not f ail a credit check, even though it may be in the list of SD documents that are "required to be released".
To release the doc, one indicates the doc to be released and then clicks on the 'Release Button'. The result is the offending doc entry, highlighted green.
One then proceeds tosave, after which you are informedthe doc number has been released.
- Net value with sub total 'A', in pricing proc, will be thebasis for credit limit.
Sales and Distribution Accounting Entries
Skip to end of metadata
 Created by Anony mous, last modif ied by Former Member on May 01, 2008
Go to start of metadata
This section covers Journal Entries of the Sales and Distribution Accounting.
Link to the Sales and Distribution Accounting Enteries in www.sap-img.com
http://www.sap-img.com/financial/sales-and-distribution-accounting-entries.htm.
NOTE: In the casethe link is unavailable, they can be found below:
Regards,
shashikanth Teegala.
INVOICE GENERATION

7. Inv oices will be generated at the Smelters and stock points. The accounting entries for the sale of goods despatched will flow from the Sales invoice
generated in SAP Sales and Distribution module. The followingentries shall be passed
Customer Account Dr
Rev enue Cr
Excise Duty Payable Cr
Sales Tax Pay able (local or central) Cr
Note: As mentioned above in the FI document, whichis createdin the background, the SD invoicenumber shall be captured. However as per the current
accounting procedurethe accounting entry passed is as follows :-
Customer Account Dr
Rev enue Cr
Excise Duty Billed Cr
Sales Tax Pay able(localor central) Cr
Excise duty paid a/c Dr
Excise duty payable a/c Cr
EXPORT SALES
There hav e been very few export transactions in the past. SAP system will be designedto handle export business. Exports are mainly from the mines and
will be handled at the mines, however the documentationpart will be taken care at the HeadOffice. The accounting entry is:
Customer Account Dr
Rev enue (Exports) Cr
The realisation of export sales will be directly credited to thebank. The accounting entries will be as follow:
Bank Dr
Customer Cr
Exchange Fluctuation Dr/ Cr
The accounting entries will be:
Rebates/Discounts Dr
Customer Cr
DEBIT MEMOS
Debit Memos shall be issued in case of price difference, sale tax difference and interest on usanceperiod and overdue payments.
The accounting entries for two possiblescenarios are as follows:
Price Undercharged:
Customer Account Dr.
Rev enue Cr.
Sales tax payable Cr.
Sales tax undercharged
Customer Account Dr.
Sales tax adjustment Cr.
Interest on delayed payments/usance period and other charges
Customer Account Dr.
Interest Others Cr.
In case of HZL a complete retirement or a partialretirement of asset is done. The system uses the asset retirement date todetermine the amount to be
charged off for each depreciation area. The existing accountingpolicy is toprovide depreciation for the full quarter in which theasset is sold/discarded,
recommendedthat the depreciationbe provided from thedate of acquisition on prorata basis .
Accounting entry for saleof Asset to customers:
Customer Account Dr
Asset Sale Cr
AccumulatedDepreciation Dr
Loss on Sale (if applicable) Dr
Asset Sale account Dr

8. Asset account Cr
Prof it on sale (if applicable) Cr
Note: In case of any Sales Tax /Exciseduty applicable for this transaction, SAP will calculate the Sales Tax/Excise Duty based on theTax Codeselected
the entry is posted tothe GL Account (Sales Tax Payable)
Accounting entry for salewithout a customer:
Accumulated Depreciation Dr
Loss on Sale (if applicable) Dr
Asset Sale account Dr
Asset account Cr
Prof it on sale (if applicable) Cr
Accounting entry for scrap
Accumulated Depreciation Dr
Loss on Sale of Assets Dr
Asset account Cr
SALE OF SCRAP
The sale of scrap (non-stock) shall be mappedas a direct manual FI entry. The customer will be created as a FI customer. No Logistics module will be
inv olved in theprocess.
A FI Inv oice will be preparedfor thesale of scrap with the followingentries:
Customer Dr
Sale of Scrap Cr
Excise Duty Payable Cr
ADVANCES FROM CUSTOMERS
Adv ances are received from thecustomers against delivery. Theseadvances will be recorded in a special general ledger account. The accounting entry for
the same will be:
Bank Account Dr
Adv anceCustomerPayments Cr
These adv ances will be lateron adjusted against theinvoices raised on the customers. Advances canbe adjusted against more than oneinvoice at the time
of clearing of the invoices against advances.
Adjustment of Advances
Customer Account Cr
Adv anceCustomerPayments Dr
A f inancial document would be created foreach Bank Guarantee receivedand this document numberwill be ref erred toin the Sales Order which would then
monitor the value andthe validity of the of the Bank Guarantee instrument wise while doing thebilling.The letter of credit /Bank guaranteegivenwill be
recorded as a noted item.
Accounting Entry for Goods receipt
Stock/Inventory account Dr
GR/IR account Cr
Freight clearing account Cr
Accounting Entry on invoice verification of supplier
GR/IR Dr
Vendor account Cr
Accounting Entry on invoice verification of freight vendor
Freight clearing account Dr
Freight Vendor account Cr
GOODS RECEIPT
Based on the Purchase order and the Quantity actually received Goods Receipts (GR) will be done. Based on the GR donethe following accounting entry
will be passed in the Financial Accounts

9. RM/PM Stock Account Dr
GR/IR Account Cr
Freight Clearing Account Cr
EXCISE INVOICE VERIFICATION
On receipt of the excise invoicecum gate pass the following entry will be passed
RG 23 A / RG 23 C Part 2 Account Dr
Cenvat Clearing Account Cr
Plants are assigned to which entity ?
is pricing possible with delievry ?
explain intercompany sales process ?
what is atp check ?
what is avalability check
asap methodology
How pricing procedure is determined ?
How many types of master data ?