SAP SD interview questions must read

  1. 1.      What is SD?  Standing for Sales and Distribution, this is one of the larger SAP modules. It handles everything about sales from the order to the delivery, including order processing, pricing, packing, billing and shipping.
  2. 2.      What do the transaction codes do?  SAP SD has built-in transaction codes to speed up transaction recording. These include marking a customer for deletion, displaying a customer, changing a customer account, creating a vendor, changing a vendor account group, changing a sales order, creating inquiries, creating quotes, displaying an item proposal, processes on delivery in and out, pricing and customer management. There are 92 transaction codes.
  3. 3.      What is pricing?  Pricing covers both prices and costs. You can set up functions and conditions in SD to determine a price. For instance, a base price might be the cost times 2.7. Or if a customer is buying in quantity, the price can be discounted. Even the date can be s condition of price, perhaps because the item is on sale for the month of May. These calculated prices can also be manually changed, as in a negotiation.
  4. 4.      How does SD handle risk management?  Risk, in a sales and distribution environment, is basically the presence or loss of credit for the customers. This is important especially if the customer is in an unstable industry – or even an unstable government. The AR section would assign a credit limit to the customers and check at each order that this limit is not exceeded.
  5. 5.      Can SD cope with a global market?  Yes it can. The foreign trade application allows you to integrate importing and exporting into the supply chain, generate declaration forms, update foreign trade invoices on the fly, and check licensing parameters.
  6. 6.      Can SD work over the Internet?  SD can accept purchase orders and forward them as sales orders to the proper SD function. This is good for the customers because they can avoid phone calls and faxes, order at any time of the day (especially of value in global commerce where there is always a market open somewhere), and check the status of their orders. These transactions can be with a customer for whom you have assigned access, or create a new customer account online. Internet information is correlated to functions and variables in the internal SAP application.
  7. 7.      Can SD handle payment cards rather than just cash?  Yes, there are a wide variety of functions aimed at payment cards. These can handle cards for point of sales, financial obligations and Internet sales. There are modules which send the payment information to a clearing house for authorization. You can preauthorize, automatically or manually authorize sales orders. You can set up requirements for authorization.
  8. 8.      What kinds of billing can SD handle?  SD can do retroactive billing, where new pricing agreements affect billing documents that have already been processed. The billing function is available at every stage of an order’s processing. SD will also handle rebates. Billing can be either periodic or by milestone.
  9. 9.      What kinds of reports can you generate?  There are reports available for just about every condition or function offered. Reports can return lists and evaluations such as all the transactions of a particular customer during a specified data span, or which documents need to be processed. Reports can also generate work lists, which will tell you what stage a transaction is at, so you can initiate the next stage.
  10. 10.  What kinds of analysis can SD do?  SD offers a few different analyses to help you make business decisions, such as pricing analysis, account determination analysis, split analysis and billing analysis. The user sets up the conditions for the analyses, rather than having pot boiler analyses.