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?

Yes.
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?

Yes.
How many shipping points can you assign to a plant?

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

None.
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.

OR

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.
Payer:
Credit control area: