The document provides a comprehensive set of SAP SD interview questions and answers, covering key concepts such as data transfer from legacy systems, copy controls, organizational elements in sales areas, and the functionalities of SAP ECC 6.0. It emphasizes the importance of defining corporate structure elements and understanding various stock types, as well as detailing responsibilities of implementation teams and the significance of condition records. Additionally, it discusses transaction definitions and the advantages of using text references in SAP.

1. SAP SD Interview Questions
and Answers
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2. 1. What is the purpose of text
determination, account
determination, partner determination, output
determination, storage location
determination ?
Text determination: For transferring information from
material or customer to order/delivery or invoice (and
anything in between) .
Account determination: For transferring financial and
costing information to proper financial docs
Partner determination: For determining who is legally
responsible for who the goods are going to and whatever
else you want to drive through this functionality.
Output determination: What kind of output does a
sales/delivery/billing document create and who gets it.

3. 2. What are the five imp fields to be maintained
in account determination ?
Account Determination: Sales View, Sales
Organization, Distribution Chanel, Chart of
Accounts, Account Assignment Group for Customer and
Material and Account Keys.

4. 3. What is meant by transfer of data from legacy
code to sap Legacy Code ?
It should be legacy data to SAP. What it means is you want
to transfer all the customer and materials and all other
information from Older (legacy system) to new SAP
system. You can do it using many tools, most noticeably
MDMs.
Before installation of SAP, Data maintained by Company is
called Legacy Data. At the time of installation, it is
required to transfer Data from Legacy to SAP like Masters
(Material/Customer, etc). It can be done in various ways
like BDC, LSMW, etc.

5. 4. What and where types of copy controls we
change ?
Copy Control: IT is basically meant so that Data is copied
from preceding Document to subsequent one. What
subsequent Document is required is to some extent
determined by Customer Requirements as well as
Document Types. e.g. In general case of Standard Order, it
will be Copy Control (Order to Delivery) from OR to LF .

6. 5. What is purpose of maintaining common
distribution channels and common divisions ?
Common Distribution Channel and Common Division are
maintained so that if any master data like customer or
material maintained with respect to one distribution
channel can be used in other DCH. It prevents the
multiplication of master records.
E.g: A customer is created for say sales area 1000/20/00
then the same customer can be used in sales area
1000/30/00 if we maintain 20 as common distribution
channel. Hence no need for extending the customers the
same for materials also.

7. 6. What is the difference between the
Availability check 01 (Daily requirement) and
02 (Individual Requirement) in material
master?
01 and 02 are the checking group. Availability check is
carried out with the help of these checking group and
checking rule. Checking group 01 and 02 are maintained on
the material master.
01 - Individual requirement -For this system generates
transfers the requirement for each order to the MRP .So
that MM can either produce or procure.
02- Collective requirement.-In this all the requirements in
a day or in a week are processed at a time. System stores all
request and passes on to the MRP in MRP run.

8. 7. What is the further Subdivision of a plant?
The further subdivision of a plant are the storage
locations, which allows stocks of materials to be broken
down according to predefined criteria such as the location
and materials planning aspects. It can also be subdivided
into locations and operational areas. They are further
subdivided into locations takes geographical criteria into
account, operational areas reflects responsibilities for
production is also a subdivision.

9. 8. What is the definition of a Plant according to
SAP?
According to SAP a plant is a place where either material is
produced or goods and services provided. Plant is classified
into Business Object. In Organizational unit within
Logistics, serving to subdivide an enterprise according to
production, procurement, maintenance, and materials
plan aspects. Coming to the Structure a plant can assume a
variety of roles. As a part of 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. The plant is the organizational unit
for material valuation, according to a rule. For the
placement of materials in storage (stock put-away), a
storage location is assigned to a plant.

10. 9. Briefly explain any three organizational
elements make up a sales area and their
function?
An organizational unit that sells and distributes
products, negotiates terms of sale, and is responsible for
these transactions is known as Sales organization.
Channel through which the salable materials or services
reach the customers, typical distribution channels include
wholesale, retail and direct sales. You can assign a
distribution channel to one or more sales organizations are
known as Distribution channel.
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 is known as Division.

11. 10. What is the relation between credit control
area and company codes and explain the credit
control area?
More than one credit control areas is not possible to assign
to a company code, since a credit control area can include
one or more company codes. Credit control area is a n
organizational unit in an organization that specifies and
checks credit limits for customers.

12. 11. What is Business area and how is it used?
The costs and revenue according to the business area
posted by the system is called as Business Area. It is used in
Sales Area if the accounts are to be posted according to
sales and Plant Division if the accounts are to be posted
according to products. The business area is defined in
Customizing for Sales. A unit in an enterprise, grouping
product and market combinations as homogeneously as
possible for the purpose of developing unified business
policy. Business Area according to Financial Accounting
(FI) defines that the 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.

13. 12. Briefly explain the internal organizational
elements within a sales organization and their
function?
The 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 a sales order is entered
for a sales office within a certain sales area, the sales office
must be assigned to that area. The staff of a sales office may
be subdivided into sales groups. For example, sales groups
can be defined for individual divisions. Individual
personnel master records are used to manage data about
salespersons. A sales person can be assigned to a sales
group in the personnel master record.

14. 13. What is Cumulative Condition Record?
Cumulative Condition Record is a field that Condition
Update during configuration for a condition type that has
anything to do with the cumulative condition records.

15. 14. How can a company's structure represent by
defining and assigning corporate structure
elements in R/3 system and what is the
purpose of doing that?
The Enterprise organization chart shows 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.

16. 15. What is Functional Specs?
Functional specification is a comprehensive document
which describes the desired functionality. It contains
technical information and data. It describes the
scope, current functionality and desired functionality of a
function/transaction

17. 16. What a new about SAP ECC 6.0?
SAP ERP Central Component 6.0 provides more than 300
functional enhancements that can improve process
efficiency. In addition, it integrates the functions of most
SAP industry solutions so that these solutions no longer
need to be installed and set up separately. The new SAP
software also simplifies daily business tasks through more
appealing and integrated user-interface concepts that
increase user productivity and satisfaction.

18. 17. SAP SD Customer Groups Sales Distribution
Module OVS9?
SAP's Sales and Distribution module is quite
comprehensive and contains various features for analysis.
One such feature within SAP SD is the creation of
Customer Groups. Simply speaking, customer groups are
part of the customer master data in SAP IMG. Customers
are assigned to a particular customer group by assigning a
two digit alphanumeric key. Such customer group key
needs to be assigned to each and every customer master
records. The main benefit of customer groups is that it can
be used in generating statistics and creating condition
records such as records for pricing.

19. 18. What is the Definition of Transaction?
A transaction in SAP is like a program in normal computer
languages, and is identified by a four-character transaction
code. A transaction can be initiated directly from the
command field on the presentation interface or from the
corresponding menu option. There are two kinds
of transactions: report and dialog transactions.
Report transactions are SAP programs that collect selection
parameters from the selection
Dialog programs consist of more than one interactive
screen called a dynpro. These transactions sometimes also
need pre selected information for triggering them, not
unlike the explicit selection screens in report programs.

20. 19. What are the responsibilities of "CORE
TEAM" and "FUNCTIONAL TEAM" in an
implementation?
Core Team are the power users who are selected for the SAP
implementation. The Functional Team gather the initial
implementation requirement from these core team users
who will be the bridge between the SAP Functional Team
and their department users with the expert work
knowledge.

21. 20. What are posting Keys and How are they
used while making postings?
Posting Keys are defined at Client Level. Posting keys
determine whether a line item is a debit or credit as well as
the possible field status for the transaction. In this
context, it is essential to understand the factors that
determine the field status of a transaction. The field status
within a FI document is controlled by Account Type, field
status of Posting Key and the field status of the G/L
account.

22. 21. What are Types of Stock ?
In SAP, there are many kinds of stock types:
 Valuated Stocks are the stocks which belongs to your
company. There are three types of valuated stocks
 Unrestricted Stock is the physical stock that is always
available at a plant/storage location
 Quality Inspection Stock is not counted for unrestricted
use and may be made available for MRP.
 Non Valuated stock is the stock which you will keep in your
premised and this is not valuated in your company
 The GR-blocked stock denotes all the stock accepted
‘conditionally’ from the vendors. This stock is not
considered available for ‘unrestricted use.’
 Special stock is the stock managed separately that does not
belong to company or that are stored at particular location.

23. 22. What is the advantage of using the text as a
reference instead of duplicating it?
Referencing avoids data entry errors and allows a standard
message relayed. And To reduce load on the system
referencing is considered better than copying.
 1) Consignment Issue : from us to customer i.e. when the
customer actually sells or consumes the material.
 2) Consignment Return : from customer back to us.

24. 23. When will you combine deliveries into one
invoice?
We will combine multiple deliveries into one invoice, when
the bill to party , payment terms and billing date is same.
And also when billing date, that means billing is done only
once in a month for that particular customer, then
you combine all deliveries of that month create invoice

25. 24. Explain to me in detail Alternate condition
base value, and alternate calculation type?
 ALTERNATE CALCULATION TYPE : This function allows
you use a formula as an alternative in finding the value of
the condition type, instead of standard condition
technique. this can be used to calculate complex tax
structures.
 ALTERNATE CONDITION BASE VALUE : The alternative
condition base value is a formula assigned to a condition
type in order to promote an alternative base value for the
calculation of a value.

26. 25. What are all the documents will generate
after saving invoice?
After saving invoice 5 documents are generated:
 1. Revenue Account
 2. Customer Receivables Account
 3. profit center Account.
 4. Special Purchase Ledger Account
 5. Profit Analysis Account.

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