SAP TUTORIALS-
SAP SD Interview Questions And Answer 2025-26
Introduction-
SAP SD Interview Questions And Answer 2025-26-
In SAP Hana And ECC 6.0 SD (Sales and Distribution) is a key module in SAP ERP that helps businesses manage sales, customer distribution, and billing.. If you are preparing for an SAP SD interview, here are some commonly asked questions along with their answers-
Que 1-)How is the organizational structure defined in SAP SD?
Answer:-
-Client: The highest level in the SAP system.
-Company Code: Represents a legal entity for financial reporting.
-Sales Organization: Handles sales and revenue distribution.
-Distribution Channel: Defines how products are sold (e.g., wholesale, retail).
-Division: Groups similar products.
-Sales Area: A combination of Sales Organization + Distribution Channel + Division.
-Plant: Location for stock and shipments.
-Shipping Point: Determines where deliveries are processed.
Que 2-)How many types of partner functions are there in SAP SD?
Answer:-
-Sold-to Party (SP) – The customer who places the order.
-Ship-to Party (SH) – The recipient of the goods.
-Bill-to Party (BP) – The entity that receives the invoice.
-Payer (PY) – The customer responsible for payment.
Que 3-)Can an invoice be created in SAP SD without a delivery document?
Answer:-
-Yes, an invoice can be created in SAP HANA And ECC 6.0 SD without a delivery document using order-related billing. This is applicable in scenarios like service billing, consulting fees, or third-party sales, where physical goods are not shipped by the company. Instead of delivery-based billing, the system generates an invoice directly from the sales order (using billing type F2). The process is configured in the billing relevance field of the item category. Order-related billing ensures accurate financial posting and revenue recognition without requiring goods movement, making it ideal for non-stock and service-based business models.
Que 4-) Can you explain the concept of copy control in SAP SD?
Answer:-
-Copy control in SAP SD is a configuration that defines how data is transferred between sales documents, deliveries, and invoices. It ensures consistency and reduces manual entry by enabling automatic data flow. Copy control is set up using transaction codes VTAA (Quotation to Order), VTLA (Order to Delivery), and VTAF (Delivery to Invoice). It consists of routines that determine which fields should be copied, changed, or excluded. Businesses use copy control to streamline document processing, enforce rules, and maintain accuracy across transactions, ensuring seamless integration between different stages of the sales and billing cycle.
Que 5-) How does an access sequence work in SAP SD?
Answer:-
-An access sequence in SAP HANA And ECC 6.0 SD is a search strategy used to determine the right condition record for pricing, discounts, or taxes. It defines the sequence in which the system searches condition tables for valid pricing data. Each access sequence consists of multiple condition tables arranged in priority order. When pricing is determined, the system checks these tables one by one until it finds a match. If no valid record is found, default pricing applies.Access sequences ensure flexible and efficient pricing by allowing conditions to be maintained at different levels, such as customer, material, or sales organization.
Que 6-) Can you explain the concepts of condition table and condition record in SAP SD?
Answer:-
-In SAP HANA And ECC 6.0 SD, a condition table is a database table that stores pricing-related data, such as material prices, customer discounts, or taxes. It defines the key fields (e.g., customer, material, sales organization) used to maintain condition records. A condition record contains the actual pricing values stored within a condition table. These records are created using transaction VK11 and retrieved during sales order processing based on an access sequence. Condition tables and records ensure flexible and automated pricing determination, allowing businesses to maintain different pricing strategies for customers, materials, or sales areas efficiently.
Que 7-)How does pricing work based on item category in SAP SD?
Answer:-
-In SAP HANA And ECC 6.0 SD, pricing based on item category determines whether an item is relevant for pricing in a sales document. The item category controls pricing behavior, such as whether an item is billed, free of charge, or service-related. Each item category is assigned a pricing relevance indicator, which defines if the system should consider it for price determination. For example, TAN (Standard Item) includes pricing, while TANN (Free Goods Item) does not. This setup ensures that only relevant items contribute to the final invoice amount, improving pricing accuracy and aligning with business requirements. Configuration is managed in VOV7.
Que 8-)What are the different types of sales orders in SAP SD?
Answer:-
-Standard Order (OR) – Regular sales order for goods delivery and billing.
-Cash Sales (CS) – Immediate payment and invoice printing at the time of order.
-Rush Order (RO) – Faster processing where delivery happens immediately, and billing follows later.
-Third-Party Order (TA) – Goods are delivered directly by a vendor instead of the company.
-Consignment Order (KB, KE, KR) – Used for consignment fill-up, issue, and return.
-Scheduling Agreement (DS) – Long-term contract with delivery schedules.
Que 9-)Can you explain picking, packing, and posting goods issue in delivery processing in SAP SD?
Answer:-
-Picking – Selecting goods from storage for delivery. It ensures the correct quantity and batch are picked.
-Packing – Placing goods into shipping units like boxes or pallets, ensuring proper handling and tracking (Transaction: HU02).
-Posting Goods Issue (PGI) – Final step where stock is reduced, financial entries are created, and goods ownership is transferred to the customer (Transaction: VL02N).
Que 10-)How is credit management handled in SAP SD?
Answer:-
-credit management controls a customer’s credit limit to minimize financial risk. It is configured using Transaction FD32 to define credit limits per customer. SAP provides two types:
-1)Simple Credit Check – Compares order value with the assigned credit limit.
-2)Automatic Credit Check – Uses dynamic credit limits, including open orders, deliveries, and outstanding invoices.
Que 11-)How does rebate processing work in SAP SD?
Answer:-
-Rebate processing allows businesses to offer discounts based on sales volume over a period. The process involves:
-1)Creating a Rebate Agreement (VBO1) – Defines eligible customers, materials, and rebate conditions.
-2)Accruing Rebate Amounts – When sales occur, rebate amounts are calculated and stored in rebate condition records.
-3)Final Rebate Settlement (VB7) – At the end of the agreement period, the system calculates the total rebate and issues a credit memo.
Que 12-)What are the various pricing elements in the SAP system?
Answer:-
pricing elements are components that determine the final price of a product or service in a sales order. Key elements include.
-1)Base Price (PR00) – Standard product price.
-2)Discounts & Surcharges (K004, K005) – Customer-specific or quantity-based reductions/additions.
-3)Freight Charges (KF00) – Transportation costs added to the price.
-4)Taxes (MWST) – Country-specific tax calculations.
-5)Rebates (BO01) – Discounts based on sales volume.
-6)Condition Supplements – Additional pricing conditions tied to base price.
Que 13-)Can you provide an example of using the condition technique and condition type in SAP SD?
Answer:-
-condition technique is used for pricing determination. For example, when a customer places an order, the system determines the price using condition type PR00 (Base Price).
-1)Condition Table – Stores price records for materials.
-2)Access Sequence – Searches condition records based on priority (e.g., customer-specific, material-specific).
-3)Condition Type (PR00, K004 for discounts) – Defines pricing elements.
-4)Pricing Procedure – Combines multiple condition types to determine the final price.
Que 14-)What is the role of stock transport orders (STO) in intercompany transfers?
Answer:-
Stock Transport Orders (STO) work a main role in intercompany stock transfers by facilitating the controlled movement of materials between two company codes within the same organization. Unlike simple stock transfers, STO involves a purchase order (PO) process, ensuring proper documentation, valuation, and financial tracking. STO enables automatic goods receipt, invoice verification, and integration with FI and SD for correct pricing and taxation.It helps maintain accurate inventory levels, transparency, and compliance with intercompany pricing regulations. STOs can be created using ME21N and processed using outbound and inbound deliveries:-
Que 15-)What are the different types of Stock Transport Orders (STO) in SAP SD MM?
Answer:-
1-)Intra-Company STO – Transfers stock between plants within the same company code. It involves a stock transport purchase order (PO) but does not create an invoice:-
2-)Inter-Company STO – Moves stock between plants in different company codes. It includes billing, pricing, and financial postings, integrating with SAP SD and FI:-
3-)Stock Transfer with Delivery – Uses outbound and inbound deliveries for logistics control, commonly integrating with shipping and transportation modules:-
Que 16-)Can you explain what a condition table and condition record are in SAP SD?
Answer:-
-SAP HANA And ECC 6.0 SD, a condition table is a database table that stores pricing-related data, such as customer-specific prices, discounts, and taxes. It defines the key fields (e.g., customer, material, sales organization) used for pricing determination.A condition record contains actual pricing values stored within a condition table. For example, if a specific customer receives a 10% discount, the system retrieves this from the relevant condition record during sales order processing. Condition records are maintained using VK11 (Create), VK12 (Change), and VK13 (Display). These elements work together to enable dynamic and flexible pricing in SAP SD.
Que 17-)Is it possible to create a delivery without a shipping point in SAP SD?
Answer:-
IN SAP HANA AND ECC 6.0 - No, it is not possible to create a delivery without a shipping point in SAP SD. The shipping point is a mandatory organizational unit that determines how and from where goods are shipped. It is assigned based on shipping conditions, loading group, and delivering plant. Without a shipping point, the system cannot process outbound deliveries. If a shipping point is missing, check the configuration in OVL2 and ensure proper assignment in the material master and sales order. Shipping points help streamline logistics by defining where picking, packing, and goods issue processes take place.
Que 18-)What is a shipping point in SAP SD, and how does it work?
Answer:-
-IN SAP HANA AND ECC 6.0, SD a shipping point is the organizational unit responsible for processing deliveries. It determines where and how goods are picked, packed, and shipped. A shipping point is assigned based on shipping conditions (from customer master), loading group (from material master), and delivering plant.
Que 19-)Can you explain the concept of quota arrangement in SAP SD?
Answer:-
IN SAP HANA AND ECC 6.0, SD a quota arrangement is used to distribute procurement or sales requirements among multiple sources of supply. It helps in cases where a material is procured from multiple vendors or plant The quota arrangement is maintained in the material master (Transaction: MEQ1), where each source is assigned a quota percentage. When a sales order or purchase requisition is created, the system automatically distributes the demand based on predefined quotas.
Que 1-)What is SAP SD?
Que 2-)What is the role of the sales organization in SAP SD?
Que 3-)How does pricing determination work in SAP SD?
Que 4-)What are the different types of sales documents in SAP SD?
Que 5-)What are partner functions in SAP SD, and why are they important?
Que 6-)What is the difference between order-related and delivery-related billing in SAP SD?
Que 1-)What are the key master data elements in SAP SD?
Que 2-)How is the material master used in SAP SD?
Que 3-)What are customer-material info records, and why are they needed?
Que 4-How do partner functions work in customer master data?
Que 5-)What is the use of the output master in SAP SD?
Que 6-)How do you maintain credit management master data?
Que 1-)What is the difference between an Inquiry and a Quotation?
Que 2-)What is the difference between a Sales Order and a Purchase Order?
Que 3-)What are the different types of Sales Documents?
Que 1-)What is a Pricing Procedure in SAP SD?
Que 2-)What is the difference between Condition Types and Access Sequences?
Que 3-)How do you create an Invoice in SAP SD?
Que 1-)What is Rebate Processing in SAP SD?
Que 2-)What is Route Determination in SAP SD?
Que 3-)What is a Third-Party Sales Order in SAP SD?
Que 4-)What is a Consignment Process in SAP SD?
Que 5-)How do you handle a sales return in SAP SD?
Que 6-)How do you handle a blocked sales order due to credit check?
Que 7-)What is an outline agreement?
Que 8-)What are different type of outline agreements?
Que 9-)What are the key components in SAP SD?
Que 10-)Define what the types of contracts are.
Que 11-)What is a partner function?
Que 12-)Define ‘Simplification’ in SAP S/4HANA Sales.