Interview Questions on SAP SD (Sales and Distribution). SAP SD is part of SAP ERP that oversees all sales and distribution procedures within an enterprise.

It manages every facet related to this area, including inventory control processes.

As firms increasingly embrace SAP ERP systems, so does their demand for experienced and qualified SAP SD specialists and SAP SD S4 Hana interview questions.

If you seek to prepare for an SAP SD technical interview question, look no further- you have arrived at the right place.

This blog features frequently requested SAP SD interview questions and answers to help you ace your interview and secure employment in this lucrative sector.

No matter where you stand regarding SAP SDMM integration interview questions, our blog is here to provide insight and confidence for tackling them! Let’s dive in together and examine some of the most commonly asked questions!

1. What is SAP, and how does it help organisations?

SAP (Systems, Applications, and Products in Data Processing) is an enterprise resource planning (ERP) application that helps organisations grow and run by seamlessly handling various needs and coordinating with all departments to achieve common goals.

Managing data using simple tools like Excel becomes increasingly tricky as an organisation grows.

SAP provides a sophisticated and integrated solution to this problem.

2. Can you explain the different types of SAP modules and their functionality?

SAP has over 100 modules, which are broadly classified into two types: functional and technical.

Functional modules focus on screens, configurations, customisations, and settings, while specialised modules work with program queries.

The available modules are designed to work together seamlessly, enabling organization-wide coordination and data sharing.

3. What is the current version of SAP, and what are the operational and enhancement components?

The current version of SAP is ECC (Enterprise Resource Planning), the operational component.

EHP (Enhancement Package) is the enhancement package that provides additional functionalities and improvements to the core system.

4. What are the benefits of upgrading to SAP S/4HANA, and why would an organisation choose it over other ERP systems?

Upgrading to SAP S/4HANA offers several benefits, including improved efficiency, real-time data processing, and better decision-making capabilities.

Organisations may choose SAP S/4HANA over other ERP systems due to its comprehensive suite of functionalities, seamless integration with other SAP modules, and the ability to adapt to the changing needs of the digital landscape.

5. What is the significance of the growth of SAP from 2008 to 2015?

The growth of SAP from 2008 to 2015 signifies the increasing demand for Enterprise Resource Planning (ERP) systems and SAP’s ability to cater to that demand.

This period saw a surge in adopting SAP solutions, which contributed to the company’s expansion and solidified its position as a leading ERP provider.

6. How would the finance department complete the finance data for the customer?

The finance department would use transactions like VD01, create, 02, change, and 03 to complete the customer’s finance data.

The customer number would be extended to create the financial view.

7. What are some of the challenges SAP faces in the ERP market?

SAP has faced challenges in areas such as Customer Relationship Management (CRM), which is not as strong as other ERP providers.

Additionally, SAP’s reporting system is not as efficient as other options in the market, and its lack of a dedicated database can result in slow queries and long transaction times.

8. What are the reasons behind SAP’s inability to remove ECC 7, ECC 8, or EHP 8?

Since 1992, SAP has been adding functionality and releasing new versions without rewriting programs.

This has led to the current system being burdened with new functionalities and unprepared to adopt new ones efficiently.

As a result, SAP has been unable to remove ECC 7, ECC 8, or EHP 8.

9. What remains some customer complaints regarding SAP, and how is SAP addressing these issues?

Customers have complained about SAP’s slowness, analytics, and reporting issues.

SAP has responded by releasing enhancement packages and patches to improve performance and address these concerns.

However, the reporting system in SAP is still not as efficient as other options in the market.

10. How does SAP’s structure, including its presentation, application, and database layers, contribute to its performance issues?

SAP’s structure, which includes a presentation, application, and database layer, contributes to its performance issues because it relies on third-party databases like Oracle and G2K for data storage.

This can lead to data redundancy and latency issues.

The ERP system, which handles transactions like orders, credit memos, debit memos, deliveries, and more, is connected through ETLs (ETL), causing further data redundancy and latency issues.

This results in post-mortem reports that are not real-time.

11. What functionalities has SAP released modules for, and why is the ERP system unable to handle all necessary tasks?

SAP has released modules for functionalities such as import, export, compliance, warehouse management, transportation module, APO, customer service, advanced credit handling, and financial supply chain management.

Despite having over 100 integrated modules, the ERP system cannot handle all necessary tasks due to its complexity and limitations in its architecture.

12. How has the R3 system evolved to meet market demands better?

The R3 system, initially developed with the resources available in the early 80s or 90s, has evolved to handle market demands better as technology advancements such as blockchain, big data, cloud computing, and IoT have occurred.

This evolution has allowed the ERP system to adapt to the changing market landscape and improve performance.

13. What are some of the areas where SAP needs to improve its reporting and architecture?

SAP needs to address its lack of a dedicated database and the complexity of its architecture to improve its reporting capabilities.

By embracing new technologies like blockchain, big data, cloud computing, and IoT, SAP can continue to compete in the market and enhance its overall performance.

14. What role does IoT play in SAP’s integration with the point of sales system, and how does HANA fit into this process?

IoT plays a crucial role in SAP’s integration with the point of sales system, as orders are often created remotely.

HANA, a high-performance analytical appliance, stores and processes this data, making the system faster and more efficient.

With a minimum RAM requirement of 128 GB and the ability to scale up to 12 terabytes, HANA is 1800 times faster than traditional databases.

15. How has SAP utilised HANA in its products, and what changes were introduced with the launch of S4 HANA enterprise management?

SAP initially tested HANA on BW and later on ERP.

In 2013, they introduced the SOH product on HANA, but it failed to fully capture HANA’s potential, as the programs remained the same 100,000 lines of JANG programs.

In 2015, SAP introduced S4 HANA enterprise management, which includes a distributed landscape with an ECC system as a backend and a front-end for various systems.

16. What are the advantages of having a distributed landscape in managing large volumes of components?

Having a distributed landscape allows for more flexibility in managing large volumes of components, such as spare parts or ERPs.

Each component, like lights and wires in an airline, can have separate servers ensuring proper functioning.

If a system crashes due to volume limitations, it will not return any results, ensuring that only the affected component is impacted rather than the entire system.

17. Why does each airline component need separate servers?

Each airline component needs separate servers to ensure their proper functioning.

For example, if a company needs 4 million components to build a thousand cars, each element would have different servers running in one server.

This separation helps isolate potential issues and prevent the entire system from crashing due to volume limitations.

18. What challenges has SAP faced in maintaining a distributed landscape and ensuring the proper functioning of its products?

SAP has faced challenges in maintaining a distributed landscape and ensuring the proper functioning of its products.

These challenges include managing large volumes of data, addressing volume limitations, and developing innovative solutions to create a more efficient and effective system for the modern business environment.

19. What is S4HANA, and when was it introduced?

S4HANA is a single system that can handle a large volume of data. It was introduced in 2015.

S4HANA is designed to be a single application with every module available, eliminating the need for a distributed landscape.

20. What remains SAP’s roadmap for ECC and S4HANA?

SAP has set a roadmap to sundown the ECC by 2025, ensuring all customers migrate to S4HANA by the same year. Since then, many customers have migrated to S4HANA, with almost seven versions available.

21. What are the implications for businesses with customers still using the old version, 4.6C, which S4HANA does not support?

The implications for businesses still using the old version, 4.6C, which S4HANA does not support, include the need to migrate to the new system and potential disruptions during the transition period.

This has caused customers to be less excited about the new version.

22. What is the impact of the ECC system becoming almost dead by 2023?

As of 2023, the ECC system will be almost dead, and users cannot directly learn S4ANA due to ongoing migration projects.

They must know what is in the S ECC to migrate and how to support it.

This means that users must know about both systems to ensure smooth transitions.

23. Why cannot users continue learning S4ANA without updating it?

Users cannot continue learning S4ANA without updating it because they may be placed in different projects within the company.

Updating S4ANA ensures users have the most recent knowledge and skills, making them more versatile and valuable in various projects.

24. Why is knowing both ECC and S4ANA crucial to making a career in SAP?

Knowing both ECC and S4ANA is crucial for making a career in SAP because the industry requires professionals who are proficient in the new system while still learning the existing ECC system.

Not knowing S4ANA might lead to being shortlisted, as it indicates resistance to change and a lack of interest in the industry.

25. Why has there been a transition to the need for SD plus S4ANA?

The transition to the need for SD plus S4ANA has occurred due to the industry’s requirement for professionals who can handle both systems during the migration period.

As S4ANA is designed for upgradation, knowing both systems is essential to support and manage ongoing migration projects.

26. What challenges do salespeople face when learning S4ANA?

Salespeople might face challenges when learning S4ANA because it takes time (around two months), and many others are also interested in learning the new system.

This creates competition, making it more difficult for individuals to stand out.

27. What are the seasonal trends in SAP careers, and how do they impact job availability?

SAP careers are seasonal, with hiring seasons from March to May and September to November.

During these periods, job availability is higher.

However, between these seasons, finding a job might be more challenging.

Relocating from one location to another can be difficult, especially for those with children in school or families.

28. What factors should be considered when choosing a job in the software industry?

When choosing a job in the software industry, one should negotiate joining bonuses and consider location and package options.

This will help ensure the right candidate is selected and benefit the individual in their career progression.

29. Why is S4ANA a valuable tool for professionals in the software industry?

S4ANA is a valuable tool for professionals in the software industry because it requires knowledge of both ECC and S4ANA, which are essential for managing migration projects and supporting the new system.

Additionally, understanding S4ANA and SD helps individuals navigate the competitive job market and achieve their goals in the software industry.

30. What is the focus of master data in FCP?

The focus of master data in FCP is on the customer and material master.

Master data is information that is used repeatedly and changes very little.

It is created by a system, such as HP creating Walmart as a customer, and then generated by the system.

This customer can be used in various transactions, such as creating a quotation or delivering an order.

31. What is the primary purpose of transactional data, and how does it differ from master data?

Transactional data is transient and focuses on a short period, such as a few months or a year.

Its primary purpose is for reporting purposes.

In contrast, master data is permanent and is used again and again.

For example, Walmart could be used for multiple orders, inquiries, or orders with the same number, 1000.

32. How is master data generally used, and what is its significance for SD consultants,consultants, FICO consultants, and others?

Master data is generally permanent and used repeatedly, which makes it crucial for managing customer relationships and data management.

For SD consultants, MM consultants, FICO consultants, and others, understanding the different types of customers and how they are created is essential for their roles.

33. Why is it important for consultants to understand the difference between transactional and master data?

Consultants need to understand the difference between transactional and master data because they have different purposes and characteristics.

Understanding these differences allows consultants to manage customer relationships and data more effectively, which is essential for their roles in the software industry.

34. How would you create a new corporate customer in the system as a salesperson?

To create a new corporate customer, I would use the transaction code VD01, design, and 02 to display, 02 to change, and 03 to show.

I would also create a sales view by extending the customer number.

35. How would you create the sales and general views of the customer?

To create the sales view and general view of the customer, I would use the transaction code VD01, design, and 02 to display, 02 to change, and 03 to show.

36. Create the customer’s finance view.

To create the finance view, I would navigate to accounting, accounts receivable, and master records and enable account key 001.

37. What is the purpose of the contact person tab in the system?

The contact person tab is used to enter any contact information about the company, such as a phone number, email address, or other contact details.

38. Describe the general view of a company like Walmart in the system.

I would give a customer an address and contact details to provide a general view of the company.

Then, I would click on the button to move to the sales view of the customer master.

39. What are the steps to create a sales view for a customer in the system?

In the sales view, I would select a customer group, which can be public sector or private. The currency used will be USD.

Then, I would move on to the shipping tab, filling in essential fields such as shipping conditions, order combination, delivering plant, complete delivery flag, partial delivery, and delivery tolerances.

40. How would you create a customer account group in Excel?

Creating a customer account group in Excel requires understanding the enterprise structure elements, including sales org, distribution channel, division, and other relevant fields.

I would select a customer group and fill in essential fields to create a more efficient and effective customer management system.

41. What is master data level shipping in Amazon with SAP SD?

Master data-level shipping in Amazon occurs when customers have shipping preferences that must be applied at the transaction level.

For instance, customers who want to ship goods to their daughter or wife can choose a specific shipping method for that order only.

42. What is the purpose of the order combination field in the system?

The order combination field makes it tricky to combine goods going out to a single customer on the same date for economic reasons.

If an order contains M01 material, M02 material, and M03 and M04 material, it can be combined into a single delivery.

However, this is not always the case, as some customers may not like the combination.

43. Can you explain the concept of delivery tolerances in the pharmaceutical industry?

Delivery tolerances refer to the customer’s tolerance for under-delivery or over-delivery.

This concept is crucial in the retail distribution of pharmaceuticals.

Some customers prefer a single shipment for convenience, while others may be more flexible with their delivery schedule.

44. How does law fieldwork in the system require complete delivery?

If checked, the complete delivery required by the law field does not make sense as it doesn’t have a practical application.

For instance, consider an order placed on June 1st and put on June 2nd, with the same line item going to New York and New Jersey.

45. Why are understanding customer tolerances and delivery tolerances critical in the pharmaceutical industry?

Understanding customer and delivery tolerances is crucial in the pharmaceutical industry.

It helps companies better manage their supply chains and ensure customer satisfaction.

This is essential for the efficient operation of the business and for maintaining strong customer relationships.

46. What is the market share of SAP among other ERPs like Oracle, Burn, and People?

SAP captures over 60% of the market, while other ERPs like Oracle, Burn, and People are charged 40%.

47. What are the advantages of using SAP in a company?

SAP’s highly integrated modules help integrate all departments within a company, providing more information about transaction data, product sales, and revenue.

It also saves time and maximises output by analysing resources.

48. How does SAP integrate with other modules like sales and distribution?

SAP integrates with other modules, such as sales and distribution, by requiring information from the accounts department, such as sales and revenue.

This integration allows for efficient customer order processing and delivery.

49. What are the main messages and materials under the ERP?

The main message and materials under the ERP are summarised in the following gimbal: SAP Oracle, Burn, and People.

50. What are YARP tools, and how do they benefit an organisation?

YARP tools are essential for organisations to achieve flexibility, transparency, and better control over their operations.

They help streamline processes, improve financial power, and provide better reporting systems.

51. How do YARP tools like Oracle and Microsoft help simplify an organisation’s operations?

YARP tools like Oracle and Microsoft are highly integrated and help simplify the organisation’s operations by integrating various modules and capturing most of the market.

This ensures that the company remains competitive.

SAP is a customised solution for all businesses, including FMCG, food and beverages, the chemical industry, manufacturing, the automobile industry, the detailed sector, and banking.

Each sector has its business process, and clients often want the same in their SAP system.

52. What sectors does SAP cater to with its customised solutions?

SAP provides customised solutions for FMCG, food and beverages, the chemical industry, manufacturing, the automobile industry, the detailed sector, and banking.

53. How are customised solutions in SAP addressed?

Customised solutions in SAP are addressed using advanced application programming consultants (ABAP), who handle both confront and technical changes in tables, fields, programs, scripts, and outputs.

54. How does SAP ensure compatibility with client-specific changes?

SAP ensures compatibility with client-specific changes by converting the output to its requirements and checking for compatibility with the SAP standard system.

55. What are the advantages of SAP?

SAP offers several advantages, including testing the solution for all business processes in just one minute, ongoing support after implementation, flexibility, transparency, and a user-friendly interface.

56. What is the structure of SAP as a market leader?

As a market leader, SAP has a unique structure consisting of several layers.

The first layer is the P L presentation layer, which includes the user interface, application application, core programming, and database layer.

The second layer is the DBL (Database Layer), which handles reporting logs and information about transactions, revenue, and product sales.

57. How are SAP modules classified?

SAP modules are divided into functional, technical, and techno functions.

The available modules do not require additional technical expertise as they are part of the active category.

Technical functions are considered app functions.

58. What is the importance of domain experience in SAP modules?

Domain experience is essential in SAP modules as it refers to the relevant area of the module.

It helps professionals work more efficiently in their respective fields.

59. What type of experience is required for a CCO (Credit Control Officer)?

A CCO requires experience in accounts related to finance and control.

60. What kind of experience is necessary for a sales and distribution professional?

A sales and distribution professional should have experience in sales and distribution, understanding the concept of sales and distribution, the logic of H D, and how to approach customers, inquire, and reach the product.

61. What is the role of consultants in SAP?

Consultants work on the application layer, end users, and database layer management using HANA software.

62. How is the customer’s tolerance for under-delivery and over-delivery specified?

The customer’s tolerance for under-delivery and over-delivery is specified in the shipping tab of the sales view of the customer master.

This allows the company to accommodate customer preferences and ensures efficient and timely product delivery.

63. Why is procurement experience necessary in SAP?

Procurement experience is essential in SAP for working in the inventory and procurement department and the material department.

64. What knowledge is beneficial for understanding SAP HR?

Knowledge of HR modules, such as time management, payroll, and recruitment, is beneficial for understanding SAP HR.

65. How will the team approach Samsung for SAP implementation?

The team will approach Samsung by presenting the advantages of SAP, product features, project costs, and workforce duration to the Samsung CEO, GM, or SOD.

66. What is the purpose of partnering with companies like Samsung for SAP implementation?

Partnering with companies like Samsung helps in effectively implementing the system by providing advantages, coordinating with the CEO, GM, or SOD, and understanding their business process.

67. Who remains responsible for implementing SAP in Samsung in collaboration with IBM?

The IBM team is responsible for implementing SAP in Samsung.

68. What is the role of a business partner in SAP implementation?

A business partner is responsible for purchasing SAP software and handing it over to the implemented company after implementation.

They must pay SAP monthly or annually.

69. Describe the SAPK CRM customer relationship management module.

The SAPK CRM customer relationship management module has two interfaces: a physical engineer interface and a user interface.

The physical engineer interface is an online interface in C R M, while the user interface is in CRM only.

70. What is the purpose of connecting SAPK CRM to Workday?

Connecting SAPK CRM to Workday allows users to access and correct information in SAPK.

71. What remainssignificant about the enterprise structure in the SAP system?

The enterprise structure is essential for successfully implementing SAP, as it allows clients to work on the platform and perform day-to-day transactions and activities.

72. What is the main topic of the SAP system?

The main topic of the SAP system is the enterprise structure, which involves understanding the company organisation hierarchy and how to configure it.

73. Create the company organisation hierarchy maintained in the SAP enterprise structure.

Every company has different departments, and departments with a hierarchy level will be maintained under the enterprise structure.

74. Explainthe significance of company codes in Samsung for SAP enterprise structure.

Each division in Samsung has its company code, which is the direct name of the company.

This information is crucial for the company’s backbone and the SAP enterprise structure.

There are different sales groups for household products, high-tech products, electronic food, and software products.

75. Can you explain the different sales groups mentioned in the text?

The text mentions four different sales groups – household products, high-tech products, electronic food, and software products. Each group has its own sales employees responsible for selling the product to customers and managing the sales process.

76. What are the three areas of the sales organisation in the ELT?

The sales organisation has three areas: enterprise tech sales, sales office, and sales group.

77. How are divisions similar to product lines in SAP?

Divisions are similar to product lines, with each division maintaining a product based on the product category character district.

For example, a software product has one division, a hardware product has one division, and high-tech products like cameras, mobiles, and laptops have another division.

78. Why is understanding the enterprise structure and configuration in the SAP system important?

Understanding the enterprise structure and configuration in the SAP system is essential for businesses to effectively manage their operations and maintain a competitive edge.

By understanding the company organisation hierarchy, the number of sales organisations, and the distribution channels, businesses can better navigate the complex landscape of the SAP system and ensure efficient operations.

79. What is a legal entity, and how is it managed?

A legal entity is independent of a physical entity with an on-profit loss and balance statement.

It is managed by home finance and controlling consultants.

80. How would you create a customer account group, and how to create your own?

To create a customer account group, I would first make a customer with a specific title, search term, street address, country, region, state, and transportation zone.

This will allow the system to pick up the customer automatically without a number.

The first screen displays the customer’s title, search term, contact details, and contact person tab.

81. Pardon, what is the purpose of studying and understanding the business process in SAP implementation?

Studying and understanding the business process helps in mapping requirements to the SAP.

82. What is the “2B” concept in SAP implementation?

The “2B” concept determines the gap between the requirement and the SAP.

83. How does the customer manage their delivery preferences in a B2C or B2B scenario?

In a B2C scenario, customers may switch to having all items shipped together, even if delays result.

In a B2B scenario, a customer might order multiple packages from a company like Pfizer, which receives orders from various retail pharmacies.

SAP SD consultant interview questions segregate the orders and send them to their headquarters.

This blog’s SAP SD interview questions aim to give a complete picture of what to expect during SAP SD job interviews and the top answers for SAP SD scenario-based interview questions.

These questions cover various critical areas of SAP SD, from module functionality and integration with other modules, troubleshooting scenarios and best practices, and possible troubleshooting solutions and advice for best practice implementation.

By becoming acquainted with these interview questions for SAPSD freshers, you will be better equipped to pass an SAP SD interview successfully and demonstrate your expertise in this widely utilised software program.

This is helpful for both SAP SD interview questions for experienced and SAP SD fresher interview questions.

Hopefully, this blog has assisted in your preparations for an SAP SD interview. We wish you much success on your career journey!