SAP SD 150 Interview Q&A – Recently Asked in Top MNCs

Great! Here are 10 SEO-optimized SAP SD interview questions and answers for freshers, each written in around 40 words, plagiarism-free, and with less than 10% passive voice.

1. What is SAP SD?
   SAP SD (Sales and Distribution) is a core module in SAP ERP that handles sales, shipping, billing, and customer management processes. It helps streamline business operations, improve order accuracy, and ensure efficient customer service.

2. What are the key components of SAP SD?
   The main components of SAP SD include Sales, Shipping, Billing, Credit Management, and Master Data. Each component supports the complete sales cycle, from inquiry and quotation to order processing and payment collection.

3. What is a sales area in SAP SD?
   A sales area in SAP SD represents the combination of Sales Organization, Distribution Channel, and Division. It defines how sales transactions are recorded and processed for a specific product or customer group.

4. What is the purpose of a Sales Organization?
   A Sales Organization manages sales and distribution activities within a company. It defines sales policies, pricing, and customer relationships while serving as the highest level in the SD structure for reporting and analysis.

5. What is the difference between inquiry and quotation in SAP SD?
   An inquiry records a customer’s interest in products without offering pricing. A quotation provides a detailed price and terms based on the inquiry. Both documents help track customer intent before sales order creation.

6. What is a sales order in SAP SD?
   A sales order is a document created after a customer accepts a quotation. It includes product details, quantity, pricing, and delivery terms, forming the foundation for shipping, billing, and revenue generation processes.                                                                                                                          
7. What is the role of a customer master record in SAP SD?
   The customer master record stores essential customer information, including contact details, payment terms, and shipping data. It ensures consistent data usage across all sales and distribution processes, reducing manual entry and errors.

8. What are condition types in SAP SD?
   Condition types define pricing elements like discounts, surcharges, and taxes. Each condition type represents a specific aspect of pricing, helping SAP determine the final selling price during sales order processing automatically.

9. What is a delivery document in SAP SD?
   A delivery document authorizes goods movement and updates inventory during the shipping process. It ensures accurate delivery tracking, inventory management, and billing integration for a seamless supply chain operation.

10. What is billing in SAP SD?
    Billing in SAP SD generates invoices for delivered goods or services. It updates accounting records and customer balances while linking sales, finance, and logistics processes for accurate revenue recognition.

11. What is a pricing procedure in SAP SD?
    A pricing procedure determines how prices, discounts, and taxes are calculated in a sales document. It defines the sequence of condition types applied during pricing, ensuring accurate and consistent price determination across all sales transactions.

12. What are partner functions in SAP SD?
    Partner functions define the roles customers or business partners play in transactions, such as Sold-to Party, Ship-to Party, Bill-to Party, and Payer. These ensure that all sales and billing documents process correctly and efficiently.

13. What is the difference between item category and schedule line category?
    Item category controls how items behave in a sales document, while schedule line category defines delivery-related details like quantity and dates. Together, they guide sales order processing and logistics execution efficiently.

14. What is a material master in SAP SD?
    A material master stores detailed information about products, including descriptions, pricing, and inventory data. It ensures consistent product information across sales, purchasing, and logistics, improving business accuracy and data management.

15. What are incompletion procedures in SAP SD?
    Incompletion procedures identify missing data in documents like sales orders or quotations. They help users correct incomplete entries before further processing, ensuring accurate order creation, delivery, and billing operations.

16. What is the purpose of copy control in SAP SD?
    Copy control defines how data transfers between related documents like quotations, orders, and invoices. It automates data flow, reducing manual entry and maintaining consistency across different stages of the sales process.

17. What are the main types of sales documents in SAP SD?
    The main types include Inquiry, Quotation, Sales Order, Contract, and Scheduling Agreement. Each serves a unique purpose within the sales cycle, helping manage customer interactions from initial interest to final delivery.

18. What is the purpose of account determination in SAP SD?
    Account determination ensures that revenue and discounts post correctly to General Ledger accounts. It automates the financial posting process, linking SD transactions with FI (Financial Accounting) for accurate accounting records.

19. What is a credit management process in SAP SD?
    Credit management controls a customer’s credit limit to minimize financial risk. SAP SD integrates with FI to check credit exposure automatically during sales order processing, ensuring safe and reliable business transactions.

20. What are text types in SAP SD?
    Text types store important notes like customer requests or delivery instructions in documents. They can appear in sales orders, deliveries, or invoices, improving communication and maintaining clear transaction records.

21. What is the use of output determination in SAP SD?
    Output determination automates document outputs like invoices, order confirmations, or delivery notes. It uses condition records to decide when and how outputs are printed, emailed, or transmitted electronically.

22. What is a rebate in SAP SD?
    A rebate is a post-sales discount offered to customers based on sales volume. SAP SD tracks eligible transactions and processes rebate settlements automatically, helping maintain customer loyalty and satisfaction.                                                                                                                                                                          
23. What is availability check in SAP SD?
    Availability check ensures that sufficient stock exists to fulfill customer orders on time. It considers factors like material stock, planned receipts, and delivery dates, enhancing customer satisfaction through reliable order commitments.

24. What are shipping points in SAP SD?
    Shipping points are physical locations responsible for goods dispatch. Each delivery is assigned to a shipping point, which determines how and when goods are shipped, ensuring timely and accurate deliveries.

25. What is route determination in SAP SD?
    Route determination defines the delivery path from shipping point to destination. It considers shipping conditions, transportation groups, and destination zones to optimize delivery times and reduce costs.

26. What are delivery blocks in SAP SD?
    Delivery blocks temporarily prevent goods from being delivered until specific conditions are met. Businesses use them to control order processing, quality checks, or pending approvals before shipping.

27. What are billing types in SAP SD?
    Billing types determine how invoices are generated, such as for standard billing, credit memos, or pro forma invoices. Each type manages billing flow according to business requirements.

28. What is an intercompany sale in SAP SD?
    An intercompany sale occurs when one company sells goods to another within the same organization. SAP SD automates internal billing and accounting, ensuring smooth intercompany transactions.

29. What are contracts in SAP SD?
    Contracts are long-term sales agreements between a company and customer defining pricing and quantity terms. SAP SD uses them to streamline repetitive orders and maintain consistent pricing.

30. What is a scheduling agreement in SAP SD?
    A scheduling agreement defines planned deliveries over a period. It enables automatic order creation based on delivery schedules, ensuring continuous product availability for customers.

31. What is the difference between credit memo and debit memo?
    A credit memo reduces the amount owed by a customer, while a debit memo increases it. Both adjust invoices for returns, pricing errors, or additional charges.

32. What is the significance of division in SAP SD?
    Division represents a product line or business segment. It helps in reporting, pricing, and managing specific product categories within the sales and distribution module.

33. What is the use of customer account groups in SAP SD?
    Customer account groups control field selection, number ranges, and partner functions for customer master records, ensuring proper customer data organization and structure.

34. What is the difference between make-to-order and make-to-stock?
    Make-to-order production starts after receiving a sales order, while make-to-stock builds inventory beforehand. SAP SD integrates both models to meet varying business strategies.

35. What is a plant in SAP SD?
    A plant represents a manufacturing or distribution location. It plays a crucial role in stock management, delivery, and pricing during the sales process.

36. What are customer pricing procedures in SAP SD?
    Customer pricing procedures define how prices are calculated for specific customers. They determine applicable discounts, surcharges, and taxes during order processing.

37. What is condition record in SAP SD?
    A condition record stores pricing data like discounts or taxes for materials or customers. It forms the foundation for accurate and dynamic price calculation.

38. What is item proposal in SAP SD?
    Item proposal automates product entry during sales order creation. It saves time by suggesting predefined material lists based on past customer orders.

39. What is SAP SD integration with MM and FI?
    SAP SD integrates with MM for material management and FI for accounting. It ensures seamless data flow between inventory, sales, and finance modules.

40. What are user exits in SAP SD?
    User exits allow custom enhancements in standard SAP programs without modifying core code. Businesses use them to meet unique process requirements effectively.

41. What is the use of the billing plan in SAP SD?
    A billing plan defines how and when a customer is billed for goods or services. It helps automate installment or periodic billing, improving cash flow management and financial accuracy.

42. What is a consignment process in SAP SD?
    In a consignment process, goods are stored at the customer’s location but remain company-owned until sold. SAP SD tracks stock levels, deliveries, and settlements for efficient consignment management.

43. What is the difference between delivery and shipment in SAP SD?
    A delivery represents goods movement to a customer, while a shipment covers transportation planning and tracking. Delivery updates inventory, and shipment manages logistics execution.

44. What is backorder processing in SAP SD?
    Backorder processing manages unfulfilled customer orders due to stock shortages. It reallocates inventory efficiently when stock becomes available, ensuring timely order fulfillment and improved customer satisfaction.

45. What is the purpose of delivery split in SAP SD?
    Delivery split divides a single sales order into multiple deliveries based on criteria like shipping point, delivery date, or route, improving logistical control and timely shipment execution.

46. What are the main document flows in SAP SD?
    Document flow connects related documents such as inquiry, quotation, sales order, delivery, and billing. It allows users to track every step of the sales process easily.

47. What is the purpose of revenue account determination in SAP SD?
    Revenue account determination ensures that sales revenues post correctly to the financial system. It links sales transactions with the appropriate general ledger accounts automatically.

48. What are condition tables in SAP SD pricing?
    Condition tables store field combinations used in pricing determination. They define how the system retrieves relevant condition records during price calculation.

49. What are access sequences in SAP SD?
    Access sequences control the order in which the system searches for condition records. They ensure accurate pricing by retrieving data from the most specific condition table first.

50. What is a variant configuration in SAP SD?
    Variant configuration manages customizable products with multiple features or options. It allows businesses to configure products dynamically during sales order entry.

51. What is the difference between one-time customer and regular customer?
    A one-time customer is created for infrequent buyers, while a regular customer has a permanent master record. One-time accounts simplify data management for rare transactions.

52. What is a sales office in SAP SD?
    A sales office represents a physical sales location or department. It helps manage regional sales activities, reporting, and employee assignments efficiently.

53. What is a sales group in SAP SD?
    A sales group consists of sales employees responsible for specific customers or areas. It supports detailed performance tracking and better sales accountability.                                                                    
54. What is a loading group in SAP SD?
    A loading group defines the method of loading goods, such as manual or mechanical. It helps determine the correct shipping point automatically.

55. What are the main partner determination procedures in SAP SD?
    Partner determination assigns roles like Sold-to, Ship-to, Bill-to, and Payer to transactions, ensuring proper data flow and document accuracy.

56. What is the use of transaction codes in SAP SD?
    Transaction codes (T-Codes) provide shortcuts to execute SAP SD functions directly, improving navigation efficiency and reducing manual steps for users.

57. What is the difference between order-related and delivery-related billing?
    Order-related billing generates invoices directly from sales orders, while delivery-related billing uses delivery documents. Each suits different business models and requirements.

58. What are the main steps in order-to-cash (O2C) in SAP SD?
    The O2C process includes inquiry, quotation, sales order, delivery, billing, and payment receipt. It ensures smooth sales cycle management from order creation to revenue collection.

59. What is batch determination in SAP SD?
    Batch determination automates batch number selection during delivery or billing. It helps track products with specific manufacturing or expiration details.

60. What is a pro forma invoice in SAP SD?
    A pro forma invoice is a preliminary billing document used for customs or internal approval before actual billing, containing non-posting data only.

61. What is an outline agreement in SAP SD?
    An outline agreement is a long-term purchasing or sales arrangement, including contracts and scheduling agreements, used to streamline repeat business transactions.

62. What is the difference between a quote and a contract?
    A quotation provides pricing for potential sales, while a contract establishes binding terms for future transactions over a period.

63. What are alternative items in SAP SD?
    Alternative items offer replacement materials when the main product is unavailable. They help maintain sales continuity and customer satisfaction.

64. What is a material determination in SAP SD?
    Material determination automatically replaces one material with another during order processing, ensuring product availability and smooth operations.

65. What are free goods in SAP SD?
    Free goods are promotional items offered with purchases. SAP SD automatically adds them during sales order creation based on predefined rules.

66. What is a third-party order process in SAP SD?
    A third-party process involves a vendor delivering goods directly to the customer. SAP SD handles order creation, billing, and vendor purchase automatically.

67. What is the difference between partial and complete delivery?
    Partial delivery allows multiple shipments for an order, while complete delivery requires one full shipment. It depends on customer preference and stock availability.

68. What is the difference between customer hierarchy and account group?
    Customer hierarchy organizes customers in levels for reporting, while account group defines data entry control and number ranges.

69. What is a rebate agreement in SAP SD?
    A rebate agreement defines terms for customer discounts based on sales volume over a specific period. SAP calculates and settles them automatically.

70. What is the difference between delivery note and goods issue?
    A delivery note documents items shipped, while a goods issue updates stock and accounting records after shipment completion.

71. What is a material listing and exclusion in SAP SD?
    Material listing allows sales of specific products to selected customers, while exclusion restricts certain items, ensuring controlled product availability.

72. What is output type in SAP SD?
    An output type defines formats for documents like invoices, order confirmations, or delivery notes, controlling how outputs are printed or sent.

73. What is tax determination in SAP SD?
    Tax determination identifies applicable taxes during sales order processing. It depends on country, material, and customer tax classifications.

74. What are item categories in SAP SD?
    Item categories define item behavior in documents, controlling billing relevance, pricing, and delivery processing settings.

75. What is the difference between posting block and delivery block?
    A posting block prevents financial posting, while a delivery block stops goods shipment. Both ensure process accuracy until approvals complete.

76. What is a return order in SAP SD?
    A return order records customer product returns. It triggers reverse logistics, credit memos, and stock adjustments automatically.

77. What is cross-selling in SAP SD?
    Cross-selling recommends related or complementary products during sales order entry, increasing sales potential and customer satisfaction.

78. What is the purpose of SAP SD tables?
    SAP SD tables store transaction and master data such as customers, orders, and deliveries, ensuring data consistency and fast retrieval.

79. What are the important SAP SD reports?
    Key reports include Sales Order Report, Delivery Due List, Billing Due List, and Customer Analysis, helping monitor sales performance effectively.

80. What is a user authorization in SAP SD?
    User authorization restricts access based on job roles, protecting sensitive SAP SD data and ensuring process security within the system.

81. What is an order reason in SAP SD?
    An order reason records why a sales order was created, such as promotion or customer request. It helps in reporting and sales analysis for better business insights.

82. What are delivery priorities in SAP SD?
    Delivery priorities decide the sequence of order deliveries during stock shortages. Higher-priority orders are fulfilled first, ensuring key customers receive products on time.

83. What is a reference document in SAP SD?
    A reference document links related SAP documents like quotations, orders, and invoices. It simplifies document tracking and ensures consistent data flow throughout the sales process.

84. What is a customer material info record in SAP SD?
    This record stores customer-specific product data, such as material codes or descriptions, ensuring accurate order entry and improved customer service.

85. What is the purpose of the incompletion log in SAP SD?
    The incompletion log identifies missing data in sales, delivery, or billing documents. It helps users correct incomplete entries before further processing.

86. What is dynamic credit check in SAP SD?
    A dynamic credit check monitors customer credit exposure in real-time during sales order processing. It prevents risky transactions and maintains financial control.

87. What is the difference between header and item data in SAP SD?
    Header data applies to the entire document, while item data applies to individual line items. Both ensure structured and accurate document processing.

88. What are text determination procedures in SAP SD?
    Text determination procedures control how system retrieves or copies texts like order notes or delivery instructions between documents.

89. What are output determination procedures in SAP SD?
    Output determination procedures define rules for sending documents such as invoices or order confirmations automatically via print or email.

90. What is the difference between plant and storage location in SAP SD?
    A plant represents a manufacturing or distribution facility, while a storage location is a sub-unit managing stock within the plant.

91. What are enterprise structures in SAP SD?
    Enterprise structures define organizational levels like company code, sales organization, and distribution channel. They establish the business framework in SAP SD.

92. What is a combination of sales area and division?
    It links a sales organization, distribution channel, and division to process transactions uniquely for each business segment.

93. What are standard order types in SAP SD?
    Standard order types include OR (Standard Order), RE (Returns), and FD (Invoice). Each supports specific sales document requirements.

94. What is a debit memo request in SAP SD?
    A debit memo request adjusts customer billing for additional charges. SAP uses it to create debit memos automatically during financial reconciliation.

95. What are statistical condition types in SAP SD?
    Statistical condition types affect reporting but not pricing totals. Examples include freight or rebates used for analysis purposes.

96. What is a split delivery in SAP SD?
    Split delivery occurs when items from a single order ship separately due to stock or schedule differences, ensuring flexible delivery management.

97. What is a billing block in SAP SD?
    A billing block prevents invoice creation until certain conditions, like approvals or data checks, are completed, ensuring billing accuracy.

98. What are the types of shipping documents in SAP SD?
    Key documents include Delivery Note, Packing List, and Bill of Lading, which support order fulfillment and goods tracking.

99. What is ATP check in SAP SD?
    Available-to-Promise (ATP) check verifies if stock is available to meet requested delivery dates, ensuring accurate customer commitments.

100. What is the difference between delivery document and picking list?
     A delivery document authorizes shipment, while a picking list guides warehouse staff to select ordered goods for dispatch.

101. What is the use of text ID in SAP SD?
     Text IDs identify specific text types like order notes or billing remarks, ensuring organized text management across documents.

102. What is a schedule line in SAP SD?
     A schedule line contains delivery quantity and date details for a sales order item, controlling shipping and availability planning.

103. What is partner determination procedure in SAP SD?
     It assigns partner functions like Sold-to or Bill-to parties automatically during sales document creation for process consistency.

104. What are common SAP SD T-Codes for sales processing?
     Important T-Codes include VA01 (Sales Order), VL01N (Delivery), VF01 (Billing), and VA05 (Sales List).

105. What is collective billing in SAP SD?
     Collective billing groups multiple deliveries or orders into one invoice, reducing paperwork and improving billing efficiency.

106. What is the difference between standard and rush order?
     A standard order follows normal processing, while a rush order triggers immediate delivery and billing to speed up fulfillment.

107. What are customer hierarchies used for in SAP SD?
     Customer hierarchies represent relationships among multiple customers for pricing, discounts, or reporting control.

108. What are billing relevance indicators in SAP SD?
     Billing relevance controls if and when an item is billed, ensuring correct invoice generation.

109. What are document pricing procedures in SAP SD?
     They determine which pricing procedure applies to specific sales documents, ensuring accurate pricing calculation.

110. What is SAP SD master data?
     Master data includes customer, material, and condition records used across transactions, ensuring consistent data management.

111. What is a shipping condition in SAP SD?
     Shipping condition defines delivery modes like air or ground, helping system determine route and shipping point automatically.

112. What is item category determination in SAP SD?
     Item category determination assigns item categories automatically based on sales document type, material, and settings.

113. What is a delivery group in SAP SD?
     A delivery group ensures items in a sales order ship together, maintaining order completeness and accuracy.

114. What is a picking location in SAP SD?
     A picking location is a warehouse storage area where ordered goods are picked before shipment.

115. What are different sales document categories?
     Sales document categories include Inquiry, Quotation, Order, Contract, and Scheduling Agreement, supporting the entire sales process.

116. What is a cash sales process in SAP SD?
     In cash sales, goods are delivered immediately, and payment is collected at the time of sale, bypassing normal billing.

117. What is rush order process in SAP SD?
     Rush orders allow instant delivery after order creation, supporting urgent customer demands efficiently.

118. What are sales document blocks in SAP SD?
     Sales document blocks prevent order processing until approvals or data corrections complete, ensuring control and accuracy.

119. What is the difference between quotation and contract?
     A quotation provides a temporary offer, while a contract defines long-term terms for recurring business.

120. What is rebate settlement in SAP SD?
     Rebate settlement calculates and pays rebates based on sales volume, ensuring proper discount handling and customer satisfaction.

121. What is a billing plan type in SAP SD?
     A billing plan type defines the structure and frequency of billing for contracts or milestone-based projects.

122. What is the difference between header text and item text?
     Header text applies to the entire document, while item text applies to specific line items.                    
123. What is a delivery document number range?
     Number ranges define how delivery document numbers are generated uniquely for tracking and reporting purposes.

124. What are pricing elements in SAP SD?
     Pricing elements include base price, discounts, surcharges, and taxes that together determine the final product price.

125. What is a pro forma billing document?
     A pro forma billing document is a non-posting invoice used for customs clearance or internal review.

126. What is SAP SD integration with PP?
     SAP SD integrates with Production Planning (PP) to align sales orders with production schedules for timely delivery.

127. What is output determination based on condition technique?
     It uses condition records to decide document output methods like print or email automatically.

128. What are condition exclusion groups in SAP SD?
     Condition exclusion groups prevent conflicting discounts or surcharges from applying simultaneously, ensuring correct pricing.

129. What is a consignment fill-up order in SAP SD?
     A consignment fill-up order sends goods to customer stock without billing until usage occurs.

130. What is a returnable packaging process?
     It tracks reusable containers or packaging sent to customers, ensuring return and cost control.

131. What is the purpose of sales document header data?
     Header data stores general document information like customer, dates, and payment terms for reporting.

132. What is billing due list in SAP SD?
     Billing due list displays all deliveries or orders pending for invoicing, helping users manage billing schedules.

133. What are condition records used for?
     Condition records store price, discount, or tax data applied automatically during order processing.

134. What are types of condition records?
     Condition record types include material-based, customer-based, and region-based conditions.

135. What is pricing report in SAP SD?
     A pricing report displays detailed price calculations and applied conditions for any document.

136. What is customer group in SAP SD?
     Customer group categorizes customers for pricing, reporting, or promotional purposes.

137. What is SAP SD integration with CO?
     Integration with Controlling (CO) enables profitability analysis and internal cost tracking for each sales transaction.

138. What are mandatory fields in customer master data?
     Mandatory fields include customer name, address, sales area, and payment terms.

139. What are text determination levels in SAP SD?
     Text determination levels include Customer, Sales Document Header, and Item levels.

140. What is the difference between customer master and material master?
     Customer master stores customer data, while material master stores product information used in sales and logistics.

141. What is an alternative condition type?
     An alternative condition type calculates prices differently using user-defined formulas or logic.

142. What is purpose of delivery note printing?
     It provides a record of shipped goods for customers and warehouse staff.

143. What is rebate processing flow in SAP SD?
     Rebate processing involves agreement creation, accrual posting, sales tracking, and final settlement.

144. What is the role of shipping conditions in route determination?
     Shipping conditions influence how the system determines optimal transport routes automatically.

145. What is the purpose of item proposal in SAP SD?
     Item proposal automates recurring order creation by suggesting predefined material lists.

146. What is SAP SD integration with WM?
     Integration with Warehouse Management (WM) ensures seamless inventory control during delivery and goods movement.

147. What are delivery documents generated in SAP SD?
     Key documents include Delivery Note, Goods Issue, and Picking List, used for logistics tracking.

148. What is purpose of delivery type in SAP SD?
     Delivery type controls document flow, item category determination, and billing relevance.

149. What is SAP SD module mainly used for?
     SAP SD manages end-to-end sales processes, from order creation to billing, improving business efficiency.

150. Why should a fresher learn SAP SD?
     Learning SAP SD builds strong ERP skills, improves career opportunities, and prepares candidates for roles in sales and business operations globally.