Basic SAP SD Concepts:

What is SAP SD?

SAP SD stands for Sales and Distribution. It is a module that handles sales, shipping, and billing of a
product or service.

Explain the sales cycle in SAP SD.

The sales cycle in SAP SD typically includes activities such as presales, sales order processing,
delivery, billing, and payment.

What are the key components of SAP SD?

The main components are Sales Order Processing, Delivery, Billing, Pricing, and Credit Management.

Explain the difference between a Sales Order and a Purchase Order.

A Sales Order is a document generated by the customer's request for goods or services, while a
Purchase Order is generated by a buyer to request goods or services from a vendor.

What is a Sales Document in SAP SD?

A Sales Document is a record that captures and represents the entire sales process, from order
creation to delivery and billing.

Sales Order Processing:

How is a Sales Order created in SAP SD?

Sales Orders can be created using transaction code VA01 or by copying from a preceding document.

Explain the significance of the Sales Document Type in SAP SD.

The Sales Document Type determines the processing of the sales document, such as whether it is a
standard order, rush order, or cash sales.

What is the purpose of the Item Category in a Sales Order?

The Item Category specifies the characteristics of a line item in a sales document and determines
how it is processed.

How is a Delivery Document related to a Sales Order in SAP SD?

A Delivery Document is created based on a Sales Order and contains information about the goods to
be shipped.

What is the difference between a Standard Order and a Rush Order?

A Standard Order follows the regular processing cycle, while a Rush Order is processed with urgency
to expedite delivery.

Pricing in SAP SD:

Explain how pricing is determined in SAP SD.

Pricing is determined based on various factors such as condition types, pricing procedures, and
customer-specific conditions.

What is a Condition Record in SAP SD Pricing?

A Condition Record is a master data record that defines the condition type, value, and calculation
method used in pricing.

How can you set up a condition type in SAP SD?

Condition Types are configured using transaction code V/06, where you define the condition class,
calculation type, and other parameters.

Explain the purpose of the Pricing Procedure in SAP SD.

The Pricing Procedure determines the sequence in which condition types are applied during pricing.

What is the significance of Condition Exclusion in SAP SD Pricing?

Condition Exclusion allows you to exclude certain conditions from the pricing calculation based on
specified criteria.

Delivery Processing:

How is a Delivery created in SAP SD?

A Delivery is created based on a Sales Order using transaction code VL01N or by copying from a
preceding document.

What is a Delivery Item Category in SAP SD?

The Delivery Item Category determines the processing of items in a delivery document and is linked
to the item category in the sales order.

Explain the concept of Delivery Split in SAP SD.

Delivery Split occurs when items in a sales order cannot be delivered together due to factors like
different shipping points or delivery dates.

How can you configure and use Batch Determination in SAP SD?

Batch Determination is configured in the material master, and it allows you to assign batches to
materials during delivery.

What is the purpose of the Shipping Point in SAP SD?

The Shipping Point determines the location from which goods are shipped and is a key factor in
determining the shipping conditions.

Billing in SAP SD:

How is a Billing Document created in SAP SD?

A Billing Document is created based on a delivery document or a sales order using transaction code
VF01.

Explain the significance of Billing Types in SAP SD.

Billing Types determine the structure and control the processing of billing documents in SAP SD.

What is the difference between Proforma Invoice and Commercial Invoice in SAP SD?

A Proforma Invoice is a preliminary invoice sent to the customer before the actual delivery, while a
Commercial Invoice is the final invoice after delivery.

How can you configure Milestone Billing in SAP SD?

Milestone Billing is configured by setting up billing plans and defining milestones in the sales
document.

What is the significance of the Billing Due List in SAP SD?

The Billing Due List is a tool that lists billing documents that are due for processing based on their
due dates.

Credit Management:

Explain the purpose of Credit Management in SAP SD.

Credit Management ensures that a customer's credit limit is not exceeded and helps in minimizing
the risk of bad debts.

How can you configure Credit Control in SAP SD?

Credit Control is configured by defining credit limits, risk categories, and assigning them to
customers using transaction code FD32.

What is Automatic Credit Check in SAP SD?

Automatic Credit Check is a system-driven process that checks a customer's credit limit against open
sales orders to determine if a delivery can be released.

How is Credit Memo Processing handled in SAP SD?

Credit Memos are created using transaction code VF01 by referencing the original billing document
and entering a negative quantity or value.

Explain the concept of Credit Memo Request in SAP SD.

A Credit Memo Request is created when a customer requests a credit for returned goods or other
reasons.

Output Determination:

What is Output Determination in SAP SD?

Output Determination is the process of determining the form and medium in which documents, such
as invoices or order confirmations, are sent to customers.

How can you configure Output Determination in SAP SD?

Output Determination is configured in the SAP SPRO transaction under Sales and Distribution ->
Basic Functions -> Output Control.

Explain the difference between Master Data and Transaction Data in SAP SD.
Master Data in SAP SD includes information that is used across multiple transactions, such as
customer and material master records. Transaction Data pertains to specific business transactions,
such as sales orders and deliveries.

What is the purpose of the Customer Master Record in SAP SD?

The Customer Master Record contains information about a customer, including address details,
credit limits, and payment terms.

How can you create a Customer Master Record in SAP SD?

Customer Master Records are created using transaction code XD01 or by copying from an existing
record.

Shipping:

Explain the purpose of Route Determination in SAP SD.

Route Determination determines the most efficient shipping route based on factors such as shipping
conditions and transportation groups.

How is Shipping Point determined in SAP SD?

The Shipping Point is determined based on the shipping conditions, loading group, and plant in the
sales order.

What is the significance of Shipping Conditions in SAP SD?

Shipping Conditions determine the transportation and shipping activities associated with a sales
order.

How can you configure Transportation Groups in SAP SD?

Transportation Groups are configured in the SAP SPRO transaction under Logistics Execution ->
Transportation -> Basic Transportation Functions -> Define Transportation Groups.

Explain the purpose of Delivery Note in SAP SD.

A Delivery Note is a document that accompanies the goods during shipment and provides
information about the contents of the delivery.

Intercompany Processing:

What is Intercompany Processing in SAP SD?

Intercompany Processing involves managing sales transactions between different legal entities
within the same corporate group.

Explain the concept of Intercompany Stock Transfer in SAP SD.

Intercompany Stock Transfer involves transferring stock between different plants belonging to the
same company code.

How is Intercompany Billing handled in SAP SD?

Intercompany Billing is used to invoice the receiving legal entity for the goods or services provided
by the supplying legal entity.

What is the purpose of Intercompany Sales Order Processing in SAP SD?

Intercompany Sales Order Processing involves creating sales orders between different company
codes within the same corporate group.

How can you configure Intercompany Pricing in SAP SD?

Intercompany Pricing is configured by maintaining the necessary conditions, condition types, and
pricing procedures in SAP SPRO.

Integration with Other Modules:

How is SAP SD integrated with SAP MM (Materials Management)?

Integration with SAP MM involves sharing information between the Sales and Distribution and
Materials Management modules to ensure seamless procurement and order fulfillment.

Explain the integration between SAP SD and SAP FI (Financial Accounting).

Integration with SAP FI ensures that financial transactions related to sales and billing are recorded
accurately in the financial accounting system.

What is the role of the Material Master Record in SAP SD-MM integration?

The Material Master Record contains information about materials and is crucial for maintaining
consistency between SAP SD and SAP MM.

How does SAP SD integrate with SAP WM (Warehouse Management)?

Integration with SAP WM involves coordinating the movement and storage of goods in warehouses,
ensuring that goods are picked, packed, and shipped efficiently.

Explain the significance of Batch Management in SAP SD-MM integration.

Batch Management ensures traceability and control of materials by assigning batches during
procurement, manufacturing, and sales processes.

Document Flow and Traceability:

What is Document Flow in SAP SD?

Document Flow provides a chronological view of all documents related to a particular transaction,
such as a sales order or delivery.

How can you view the Document Flow in SAP SD?

Document Flow can be viewed using transaction code VA03 for sales orders, VL03N for deliveries,
and VF03 for billing documents.

Explain the purpose of the SAP SD Document Status.

Document Status indicates the current processing status of a document and helps users track the
progress of a transaction.

What is the significance of the Document Type in SAP SD Document Flow?

Document Types define the category and purpose of a document and are important for determining
how the document is processed.

How does SAP SD ensure traceability of goods during the entire sales process?

Traceability is achieved through the use of unique document numbers, batch management, and the
Document Flow feature in SAP SD.

Output Determination:

What is Output Determination in SAP SD?

Output Determination is the process of determining the form and medium in which documents, such
as invoices or order confirmations, are sent to customers.

How can you configure Output Determination in SAP SD?

Output Determination is configured in the SAP SPRO transaction under Sales and Distribution ->
Basic Functions -> Output Control.

Explain the difference between Master Data and Transaction Data in SAP SD.

Master Data in SAP SD includes information that is used across multiple transactions, such as
customer and material master records. Transaction Data pertains to specific business transactions,
such as sales orders and deliveries.

What is the purpose of the Customer Master Record in SAP SD?

The Customer Master Record contains information about a customer, including address details,
credit limits, and payment terms.

How can you create a Customer Master Record in SAP SD?

Customer Master Records are created using transaction code XD01 or by copying from an existing
record.

Shipping:

Explain the purpose of Route Determination in SAP SD.

Route Determination determines the most efficient shipping route based on factors such as shipping
conditions and transportation groups.

How is Shipping Point determined in SAP SD?

The Shipping Point is determined based on the shipping conditions, loading group, and plant in the
sales order.

What is the significance of Shipping Conditions in SAP SD?

Shipping Conditions determine the transportation and shipping activities associated with a sales
order.

How can you configure Transportation Groups in SAP SD?

Transportation Groups are configured in the SAP SPRO transaction under Logistics Execution ->
Transportation -> Basic Transportation Functions -> Define Transportation Groups.

Explain the purpose of Delivery Note in SAP SD.

A Delivery Note is a document that accompanies the goods during shipment and provides
information about the contents of the delivery.

Intercompany Processing:

What is Intercompany Processing in SAP SD?

Intercompany Processing involves managing sales transactions between different legal entities
within the same corporate group.

Explain the concept of Intercompany Stock Transfer in SAP SD.

Intercompany Stock Transfer involves transferring stock between different plants belonging to the
same company code.

How is Intercompany Billing handled in SAP SD?

Intercompany Billing is used to invoice the receiving legal entity for the goods or services provided
by the supplying legal entity.

What is the purpose of Intercompany Sales Order Processing in SAP SD?

Intercompany Sales Order Processing involves creating sales orders between different company
codes within the same corporate group.

How can you configure Intercompany Pricing in SAP SD?

Intercompany Pricing is configured by maintaining the necessary conditions, condition types, and
pricing procedures in SAP SPRO.

Integration with Other Modules:

How is SAP SD integrated with SAP MM (Materials Management)?

Integration with SAP MM involves sharing information between the Sales and Distribution and
Materials Management modules to ensure seamless procurement and order fulfillment.

Explain the integration between SAP SD and SAP FI (Financial Accounting).

Integration with SAP FI ensures that financial transactions related to sales and billing are recorded
accurately in the financial accounting system.

What is the role of the Material Master Record in SAP SD-MM integration?
The Material Master Record contains information about materials and is crucial for maintaining
consistency between SAP SD and SAP MM.

How does SAP SD integrate with SAP WM (Warehouse Management)?

Integration with SAP WM involves coordinating the movement and storage of goods in warehouses,
ensuring that goods are picked, packed, and shipped efficiently.

Explain the significance of Batch Management in SAP SD-MM integration.

Batch Management ensures traceability and control of materials by assigning batches during
procurement