sap review questions and answers2[1]

8/2/2019 Sap Review Questions and Answers2[1]

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SAP SD QUESTIONS AND ANSWERS

GENERAL/ORGANIZATIONAL UNITS/MASTER DATA

1. What is a client in an R3 System?A. The Highest Level element of all organizational units is the client.

The client can be an enterprise group with several subsidiaries.

2. Name the relevant organizational units in SD and explain howthey are used?

A. An enterprise is structured in SAP system according to businessfunctions that must correspond to the functionality assigned to theorganizational units.

Business Organizational unitsEnterprise ClientFI/ Sales Company code Sales org.Cost Acctg Controlling Area.Prodn / Distrn Plant 1 / Plant 2 Distn Chnl.Invt. Mgt Storage locations.

Company Code: It is a unit included in a balance sheet of alegally independent enterprise. It is the central organizationalelement of Financial Accounting.

Controlling Area: The Business Unit where Cost accounting iscarried out. For the purpose of Company wide cost accounting,once controlling area can handle cost accounting for severalcompany codes in one enterprise.

Sales Organization: It is the central organizational element thatcontrols the terms of sale to the customer.

Distribution Channel: It is the element that describes through

what channel goods and /or services will be distributed to thecustomer.

Plant: In the context of Production Planning and Control the Plantis the central organizational unit. It is a place of production orsimply a collection of several locations of material stocks in closephysical proximity.

Storage Location: It is a storage area comprising of warehousein close proximity. Material stocks can be differentiated within one

plant according to the storage location of inventory management.3. What is the company code in R/3 system?


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A. Company Code: It is a unit included in a balance sheet of alegally independent enterprise. It is the central organizationalelement of Financial Accounting.

4. Does SD master data have to be maintained at company code

level?A. Data records that remain in the database for a long period of time are called

master data. Eg: Creditors, Vendors, Materials, Accounts etc. SD masterdata can be assigned to Company Code and Sales Area.

5. What is a sales organization in the R/3 System?A. Sales Organization: It is the central organizational element that

controls the terms of sale to the customer.

6. Explain a distribution channel in the R/3 System?

A. Distribution Channel: It is the element that describes throughwhat channel goods and /or services will be distributed to thecustomer.

7. Which organizational units combine to make up a sales area?A. The Sales Organization, Distribution Channel and Division.

8. What does the material type control?A. Key that assigns the material to a group of materials such as raw

Materials, operating supplies or trading goods.

The material type defines certain attributes of the material andhas important control functions.* When creating a material master record, the material typedetermines* Whether the material number is assigned internally or externally* From which number range interval the material number comesWhich screens are displayed?* The order in which screens are displayed* Which department-specific data is displayed for the user toenter.

9. What is determined by specifying an industry sector?A. Key that specifies the branch of industry to which the material is

assigned.When you create a material master record, the industry sector youspecify determines* Which screens appear and in what order* Which industry-specific fields appear on the individual screens

10. Explain the concept of views in a material master record?


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A. The material master is grouped into several views, Basic Data,Sales organisation data, Sales General / Plant Data, Purchasing,Foriegn trade data, Purchasing data, Accounting data etc.Basic data is relevant for all areas. It is valid for all organisationalunits within a client.

Sales: Sales organisation data is relevant for sales anddistribution. It is valid for the respective sales organisation anddistribution channel.The sales plant data is also relevant for sales and distribution.Valid for the respective delivering plant.

11. Which material master view is valid for all clients?A. Basic data is relevant for all areas. It is valid for all organisational

units within a client.

12. To sell a material, which views do you have to maintain in themaster data?

A. Basic data, Sales org1, Sales org2, Sales General / plant, ForeignTrade Export, Sales Text.

13. What do the partner functions do in the customer master record?A. Defines the rights and responsibilities of each partner in a

business transaction.

Examples of partner functions in Sales and Distribution:

Sold-to party, Ship-to party, Bill-to party, Payer.

Examples of partner functions (roles) in Materials Management:Ordering address, Supplier of goods, Invoicing party, Differentpayee

Examples of partner functions in Service Management:Ordering party, Bill-to party, Ship-to party, Person responsible.

14. Which organizational units do you have to enter when creating a

sales order? Do you have to maintain the customer or materialmaster records for all of these units?

A. They are Sales organization, Distribution channel, Division. Yesthe master records have to be maintained at the Customer andMaterial masters.

15. We have 4 sales area and 2 company codes. The customer canbuy from both sales areas. How many customer numbers wouldthis customer have?

A. One.

16. What is an Account Group?


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A. When you create a master record for a business partner, you mustenter an account group.The account group determines:Which screens and fields are necessary for entering master dataWhether you can or must make an entry in these fields

How master record numbers are assigned (externally by you orinternally by the system) and the number range from which theyare assignedWhich partner functions are valid?Whether the business partner is a one-time customer or one-timevendor.

17. What additional influences our field selection for the customermaster?

A. The field status you define

Into which fields you have to enter data when creating thecustomer master record of an account groupInto which fields you can enter dataWhich fields should not be displayed by the SAP System?You define with the field status, for example, that the sales taxindicator is not suppressed.Bear in mind that a screen is not displayed when you maintain acustomer master record if you have suppressed all of the fieldscontained in it.You can define the field status to be dependent on either account

group or transaction.You do not have to make entries for text determination, partnerdetermination and other sales data at this point. You maintainthese fields later when you set the defaults for the individualfunctions


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SALES

1. What does the sales document type control?A. The sales document types represent the different business

transactions in Sales and perform a central controlling function forthe entire sales order process. The definition and configuration ofsales document types can be divided into three parts:1. Definition of the sales document types for itself (for example,standard order OR)2. Definition of additional sales document functions (for example,number ranges)3. Configurations for general sales and distribution functions (forExample, pricing)

2. How is a sales document structured?A. A sales document is grouped into three levels: header, item and

schedule line. Data is distributed on these levels as follows.

Sales document header:

The data in the document header is valid for the entire document.This includes, for example, customer-related data.

Sales document items:

Each item in the sales document contains its own data. Thisincludes, for example, data about the material and quantitiesordered.Each sales document can have several items, while individualitems can be controlled differently. Examples include materialitem, service item, free-of-charge item or text item.

Item schedule lines:

Schedule lines contain delivery quantities and delivery dates. They

belong uniquely to an item. Every item that has a subsequentoutbound delivery in the sales and distribution process must haveat least a schedule line. The item can have several schedule lines,for example when the quantity ordered is to be delivered inseveral partial deliveries at different times.


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7. How do you distinguish a quantity contract?A. A contract is an outline agreement between the company and the

customer that is valid for a certain time period. The contract doesnot contain any schedule lines, delivery quantities, or delivery

dates. The release orders are created after the contract has beenmutually agreed upon, which contains schedule lines and can beprocessed same as that of the Standard order.

8. How do you use a scheduling agreement?A. A scheduling agreement is an outline agreement between the

company and the customer that is valid for a certain time period.The scheduling agreement contains fixed delivery dates forschedule lines, and quantities. Once the scheduling agreement isdue for delivery, you can create the delivery as normal or by using

delivery due list.

9. Which functions enable you to copy data from one document toanother in SD?

A. In copying control you determine which document types can becopied to another document type. Examples of this show how youcan create a:Sales document type from a sales doc. type e.g. Standard order(OR)


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PRICING

1. What should you do if R/3 standard pricing doesn't meet yourrequirements?

A. Create new pricing procedures by copying a similar pricing

procedure.- Specify a key with up to 6 characters and a description.- For a procedure, specify the condition types in the sequence oftheir usage.Maintain the lines of the pricing procedureAfterwards define the customer determination procedures fordetermining the procedure Define the document pricingprocedures for determining theprocedureAssign the procedure to the sales document types and billing

types. To determine the procedure, define the allowedcombinations of:- Sales area- Customer determination procedure- Document pricing procedure- Pricing procedure

2. What should you remember if you define your own condition type?A. Create new condition types by copying a similar conditions type

and changing it according to your requirements. One reason for

creating a new condition type is you may require a calculation rulefor a discount, which is not available in the standard system.Specify an alphanumeric key, which can have up to 4 digits, and atextual description.Specify an access sequence for the condition types. You do notneed to specify an access sequence for header conditions.Maintain the detail screen of the condition type.You can also assign a reference condition type if the conditionTypes you are working with are similar. Then you will only have tomaintain condition records for the reference condition type.

In addition, you can define the upper and lower limits for thevalue of a condition at condition type level. This way, you limit theamounts or the scale values in the corresponding conditionrecords.

3. What is a condition table?A. Condition table is the combination of fields for which you can

create condition records.

4. What is a condition record?

A. Data record that stores conditions or condition supplements.5. What is an access sequence?


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A. The access sequence is a search strategy which the SAP Systemuses to search for condition records valid for a condition type.

6. What is a pricing procedure and how is it determined?A. Defines the conditions which are permitted for a particular

document and the sequence in which the system takes theseconditions into account during pricing.

First, the relevant pricing procedure is determined based on thesales area, customer, and sales document type.

The system reads the condition type of the first step. Itdetermines the assigned access sequence for this condition type.The system reads the access sequence. The sequence of conditiontables represents the search strategy for finding the relevant

condition record.Each condition table represents one access, which can be made,or a condition record with the specified key.The system searches for valid condition records with the keyspecified by the condition table (accesses).If the first access does not find a valid condition record, then thesystem searches for the next access using the next conditiontable.Once the system finds a valid condition record for an access, itreads the condition record and copies the value that corresponds

to the scale into the sales document.The whole process is repeated for each condition type until thesystem has finished the entire pricing procedure.

7. What is particular about header conditions?A. These are known as header conditions and are valid for all items.

These header conditions are automatically distributed among theitems based on net value. The basis for distributing the headerconditions can be changed in the pricing procedure by selectingthe appropriate routine (e.g. weight, volumes) in the AltCBV

(alternative formula for condition base value) field.

8. What are group conditions?A. Conditions, which can be used to determine a scale, value based

on more than one item in a document.

9. What do you know about manual pricing changes?


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A. The prices, surcharges, and discounts determined automatically bythe system can be changed manually and are then marked assuch.In the condition records, you can specify limits within which amanual change can be made (for example, making a discount

which could only be changed within the range of 1% to 3%)As well as being determined automatically, conditions can also beentered manually in the sales document. They are marked ashaving been entered manually.You can change or create conditions on the condition screen.You can prevent one condition type from being changed manuallyby making the appropriate settings in customizing.

10. How are statistical conditions flagged?A. In the standard pricing procedure (RVA001) statistical conditions

like cost (VPRS), cash discount (SKTO) are marked with statisticalindicator, This indicator causes a surchage or discount to be set inthe document statistically (that is, without altering the value).

11. What are condition supplements?A. Group several conditions together in a condition supplement

procedure if you want these conditions to be accessed togetherduring pricing.

12. Condition records can be created with reference to an existingcondition?

A. Yes.

13. To create price changes you must create a new condition record?A. Not necessary the same conditions can be used with change price

function.

14. Condition records can be created by copying an existing conditionrecord?

A. Yes

15. Copy rules control the copying of condition records?


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A. The copy function allows you to copy the data in an existingcondition record to a large number of new condition records toreduce the time required for maintenance.The existing condition record contains a condition type and acondition table which are referred to as the source condition type

and source condition table in the copying rule. In the copyingrules, you make the possible assignments of source conditiontables and source condition types to target condition tables andtarget condition types.

16. Your organization has its own pricing condition types and linked totheir own condition tables. They would like to maintain therecords from a central area. How can they accomplish this?

A. Condition maintenance has been provided with a newmaintenance interface for Release 4.6A.

The new interface allows mass maintenance of conditions basedon characteristics (e.g. for the customers).This means that condition records can now be maintained acrossall condition types and condition tables. You will, for example,be able to display and maintain the material prices as well as thediscounts and surcharges for a customer in one step.You can also call up the previous maintenance transaction forconditions by choosing Select using condition type.

The new condition maintenance function can be configured

using area menus.The standard area menu for condition maintenance is COND_AV.A user-specific area menu can be assigned by choosing the menuoption Environment -> Assignment Area Menu.These user-specific area menus can be created usingtransaction SE43, e.g. by copying the user menu COND_AV, andadapted to meet specific requirements.

17. We need to provide a customer with prices for a select group ofmaterials. What tool does SAP provide us to accomplish this?

A. The net price list offers the option of creating price information fora customer on a selected quantity of materials.The net prices are determined by simulating a billing document.Using the ABAP list viewer is a simple way of creating customer-specific display variants. All fields in the VBRP table are availablefor this purpose


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18. How can we create a condition record that we will not be used inthe pricing determination but be able to be used for planningpurposes in CO-PA?

A. We can use the statistical conditions like VPRS, SKTO, which canbe used in price determimation statistically for planning purposes

in CO-PA.

19. What is the purpose of a group condition?A. Condition, which can be used to determine a scale, value based on

more than one item in a document. The system groups the itemsusing either the condition key for the appropriate condition recordor a separately defined condition key.You can define a condition type as a group condition. If the samecondition occurs in different document items, the item values areadded up and the result used as the basis for determining the

scale level. If the condition type is entered at header level, thevalue is apportioned among the items.

In Customizing you can set a condition type to be a groupcondition. The condition base value (e.g. weight) is thencalculated as the sum of the individual items within one group. Forgroup conditions with varying keys, item quantities areaccumulated for scale point determination purposes but the ratefor each item is taken from its individual condition record.Contro data : Entry for condition type Group condition : X

Unit of measure for accumulation, e.g. piecesGrKey Number: 1, 2 or 3 (see explanation below)

Complete document: All quantities with the same condition typeare accumulated.

For all condition types: All quantities are accumulated whichbelong to condition type routine 2.

Material pricing group: All quantities with the same condition type

and material-pricing group are accumulated.


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20. How can SAP handle multiply levels of a customer or producthierarchy in one condition record.

A. Hierarchy accesses optimize pricing for hierarchy data structures,such as the product hierarchy. To define the condition table keyfor hierarchies like this, you might have to include partial

quantities for a pre-defined quantity of characteristics.Without hierarchy accesses, you would need to create a conditiontable for each combination and assign all the accesses to thesetables in an access sequence.This requires a lot of maintenance and will reduce systemperformance. The sequence of the accesses will also be fixed.This is particularly disadvantageous for hierarchy data such asproduct or customer hierarchies.The functions in hierarchy accesses enable you to solve theseproblems by using a single access to a condition table.

In condition record maintenance, when you create the accesssequence for using this condition table at field level, you have todefine whether each field is a fixed component of the key orwhether it is an optional field.Priorities are assigned to the optional fields.During pricing, the system sorts the records found with this accessaccording to priority and displays the record with the highestpriority.Hierarchy accesses also provide clearer and easier master datamaintenance because the different condition records for a

condition type are created together in the quick entry screen formaintaining conditions.


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Shipping

1. Which organizational units are important for shipping goods?A. Delivering plant with assigned storage location, Shipping point.

2. Name the functions in the shipping process.A. Shipping processing in Sales and Distribution begins when you

create the delivery document. The delivery document controls,supports and monitors all sub processes of shipping processing,such as(Optional) picking and confirming (transfer orders),(Optional) packing,(Optional) planning and monitoring of transport (shipmentdocument) andPosting goods issue (goods issue documents).

When you create a delivery document, data is copied from thesales order, such as materials and confirmed quantities.When you create a transfer order, data is copied from theoutbound delivery to the transfer order for processing by thewarehouse management. The transfer order is essential forcontrolling the movement of goods within your warehouse. Thetransfer order is based on a simple principle: where you are takinggoods from and to, within your warehouse. There is a sourcelocation and a destination location for every transfer order.

Posting the goods issue can change the quality as well as thevalue of the stock. Changes based on a quantity basis are madeon the relevant balance sheet accounts and stock change accountsin financial accounting.

3. What conditions must be met before you can combine severalsales order items in one delivery?

A. To combine them successfully, the orders must all have the samecharacteristics that are essential for the shipping process, forexample:

shipping point Due date

Ship-to address

4. What must you do if you want to pack the materials that are to bedelivered?

A. Shipping materials are materials used for packing ortransporting goods (packaging materials).In order to store packing information for an outbound delivery inthe system, you must first specify a shipping material.

You must create material master records for the differentshipping materials. You can use material type VERP for these


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materials in the standard system. You define special data such aspacking weight and volume permitted for each shipping material inthe material master. You can activate these fields for eachmaterial type.

5. What is a shipping point. What factors are important when it isdetermined?

A. A shipping point is an independent organizational unit at a fixedlocation that processes and monitors outbound deliveries as wellas goods issue. The shipping point is directly under the clientlevel.An outbound delivery is processed from a single shipping point.The responsible shipping point is determined in the order at itemlevel.A shipping point can process the outbound deliveries of several

plants. This is only useful if the plants are located in the samegeneral vicinity.Several shipping points can be assigned to one plant. They may,however, have different loading equipment or different processingtimes.

A shipping point is determined for each order item. The systemautomatically proposes a shipping point that you can changewithin given limits.The shipping point depends on the following criteria:

The delivering plant that is determined for each order item (fromthe customer-material info record, the ship-to party record, or thematerial master record)The shipping requirements (for example, express) contained in theShipping Conditions fieldThe required loading equipment contained in the Loading Groupfield in the material masterThe shipping condition is proposed from the sales document typeif a shipping condition has been assigned to it. If not, the shippingcondition is proposed from the master record of the sold-to party.

An outbound delivery is always processed by one shipping point.You cannot change the shipping point in the outbound delivery.When an order is processed for delivery by the shipping point, thesystem only copies into the outbound delivery those order itemsthat are defined for this shipping point.Order items with different shipping points are therefore not copiedinto the same outbound delivery

6. What is a transportation planning point? Which organizationalunits is it assigned to?


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A. The transportation planning point is the central point withinthe company that plans, processes, and monitors shipments. Itcan be a location or a group of people responsible for processing.Each shipment is created and processed by a single transportationplanning point.

Transportation planning points process shipments. They areassigned to one company code and are not linked to the otherorganizational units.

7. Before you can deliver an order, what prerequisites do you have tomeet?

A. Schedule lines contain delivery quantities and delivery dates. Theybelong uniquely to an item. Every item that has a subsequentoutbound delivery in the sales and distribution process must have

at least a schedule line. The item can have several schedule lines,for example when the quantity ordered is to be delivered inseveral partial deliveries at different times.

8. What do you know about picking deliveries?A. Picking is the process of preparing goods for delivery to the

customer with special attention paid to dates, quantity, andquality.You specify for each delivery item category whether it is relevantfor picking

9. What do you trigger by posting goods issue in the R/3 System?A. Posting goods issue for an outbound delivery completes shipping

activities.Goods issue

reduces warehouse stock

posts the value change to the stock accounts in inventoryaccounting

reduces delivery requirements

enters status information in the outbound delivery

is stored in the document flow creates a work list for billing

10. What is delivery scheduling?A. As part of the normal sale process, you want the system to

determine automatically the point at which your customerreceived the goods they had ordered. To do this you activate thedelivery scheduling and availability check functions. Thesefunctions are not necessary for credit memo requests.

11. How is the item category for a delivery created?


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A. When you copy an order item to a delivery, the system copies theitem category of the order item to the delivery item.If an order item category or the schedule line assigned to it isrelevant for delivery, the same item category is defined for thedelivery process.

12. What controls the delivery item category?A. The item category is controlled by the delivery type, item category

group of Material master, Usage of the item and the item categoryof the higher-level item.

13. What does a delivery type control?A. The delivery item category controls how delivery items are

handled and processed during the shipping process. The controlelements available provide a high degree of automatic

determination and checking.Specifically it controls:Item relevance for pickingCheck for over deliveryPicking location identificationTextsAvailability checkCheck minimum delivery quantityAutomatic batch determinationRelevant for proof of delivery

Packing control

14. What does a delivery item category control?A. The delivery type controls the entire delivery. You see the

delivery type in the delivery header.The delivery types take into account the various businesstransactions in delivery processing.Specifically it controls:Number assignmentPartner determination

Delivery split by warehouse numberTextsReference to orderRoute determinationRelevance for Shipment / Transportation processingOutput

15. How are items categories in the delivery determined?


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A. When we copy an order item to a delivery, the system copiesthe item category of the order item to the delivery item.If an order item category or the schedule line assigned to it isrelevant for delivery, the same item category is defined for thedelivery process.

The system cannot copy item categories for order-independent items in the delivery (for example, packingmaterial) or for deliveries without reference to an order(delivery type LO). For such items the system determines thedelivery item category by:Delivery typeItem category group ( from the Material Master)Usage

Additional usages are set internally for some functions, such as:PACK for generating packing itemsCHSP for a batch splitPSEL for product selectionFor the delivery items resulting from these functions, the systemcan determine a different item category.

16. When determining the delivery date what scheduling is taken intoaccount to arrive at the delivery date?

A. The system performs backward scheduling in the order. If the

result is a date in the past, the system automatically performsforward scheduling, which requires the confirmation of a newrequested delivery date. The same happens if the material is notavailable by the material availability date.

When you create an outbound delivery you can carry out forwardscheduling again. This is generally done when the materialavailability date determined in the order falls in the past by thetime you create the outbound delivery (delay when creating theorder). You can specify for each delivery type whether scheduling

should be redetermined.

Scheduling takes into account the following times:Transit time (Time required in order to ship a delivery to the ship-to party)Loading time: Time required for loading the goodsPick/pack time: Time required for picking, packing, and so onTransportation lead time: Time required for organizing thetransportation


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17. When does the system switch to forward scheduling to determinethe delivery date?

A. When the system performs a backward scheduling and the resultis a date in the past then it switches to forward scheduling.

18. If you are not using the transportation component and yourorganization wants to maintain the shipping related conditions (iepostal charges) what tools are available in SAP?

A.


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Transportation

1. What is a route?A. The route specifies the itinerary of a shipment and defines other

factors, such as the means of transport and the transportation

service agent. A route can consist ofstages. A stage can be aleg, a load transfer point, or a border-crossing point.You must define the start and end points of the legs as well as theload transfer points and the border-crossing points astransportation connection points.

2. What factors influence the automatic route determination?A. Route determination is carried out in the order item and

depends on:The country and the departure zone of the shipping point

(assigned in Customizing)The shipping condition defined in the sales document type orentered in the sold-to partyThe transportation group assigned to the materialThe country and the transportation zone of the ship-to party(assigned in the customer master)

3. How can you create a shipment?A. You can create shipments manually using the Create shipment

function. You can select deliveries due for shipping using different

selection criteria and create the documents manually.You can also use a planning proposal. This is a pre-definedprofile according to whose rules, deliveries are automaticallycombined into shipments and completed with data.The system can also create shipments automatically. To do this,you use a collective processing run that is executed online or inbatch mode. The system creates one or more shipment documentsaccording to different processing rules.If the shipments are created and optimized by an externaltransportation planning system, you can link to this system with

an interface.

4. What does transportation planning do?A. A transportation chain supports the shipment of inbound or

outbound deliveries for which several modes of transport are to beused. This means that the deliveries are involved in varioussubsequent shipments.A transportation chain has the following characteristics:One or more deliveries are involved in several shipments.There are one or more points of departure and one or more

destinations.Various modes of transport can be used.


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Several shipment documents are created: preliminary legs, mainleg, and subsequent legs. Special shipment types are available forthis in the system

5. What is particular about the shipment cost document?

A. The shipment cost document consists of the following sections:Shipment cost header The shipment cost header containsgeneral information on the entire document. Status, reference, andadministrative information is provided. As far as the statusinformation is concerned, the statuses are cumulated statuses thatare derived from the individual items.Shipment cost item The items contain general data for shipmentcost calculation and settlement, such as service agent, pricing andsettlement date, tax amount and tax base amount, andorganizational data such as company code, plant, and purchasing

organization. Each item has its own status for the shipment costcalculation, account assignment and transfer functions.Shipment cost sub-item Shipment costs are calculated atshipment cost sub-item level. The calculation result is alsorecorded at this level.

6. What prerequisite must be met before the shipment costs can besettled?

A. The Shipment cost types and item categories are importantcontrol elements of the shipment cost document; they contain

several control characteristics for the shipment cost document.The shipment cost type controls the document at the headerlevel, for instance:Number rangesStatus requirements of the shipment document for creating ashipment cost documentThe item category contains:Parameters for shipment cost calculation, such as partnerfunctions, date rules, and item procedure groupsParameters for shipment cost settlement, such as settlement

relevance, account assignment category, cost distribution, andorigin of CO assignments The calculation base determines theorigin of the data that is used during pricing as a basis for thecondition type. It also determines which information is available fordetermining the prices. For all calculation bases, the informationfrom the shipment header and possibly the shipment stage and theshipment cost item is available. The calculation base also defineshow the scale bases such as gross weight, net weight, and volumeare calculated. If you use the delivery item as the calculation base,for example, information from the delivery header and the delivery

items is available, but not from the shipping units. Weights andvolumes only refer to the delivery item.


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The condition type controls which calculation base is used forcalculation.When the shipment costs are calculated, the system determinesthe shipment cost sub-items from the different calculation bases ofthe condition types included in a pricing procedure. The calculation

itself is then carried out for each sub-item7. How can you transfer shipment costs to Financial Accounting?A. Transfer to Financial Accounting to establish accruals requires

the entry and acceptance of services performed. Thecorresponding sheet is automatically created by the system duringtransfer.Each service entry sheet is based on an external service order.So that the costs can be transferred to Financial Accounting andthus settled, the system must determine a valid service order.

This external service order must have been created in Purchasing.You can create the service order monthly for the service agent.Important criteria for the service order include service agent,purchasing organization, purchasing group, plant, and itemcategory.


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Billing

1. Which business transactions can be billed in the SAP R/3 System?A. Orders and deliveries.

2. How do you decide which data should be copied from thereference documents to the billing document?

A. The system administrator can define how data is transferred in thebilling process in the copying control table. Controls aredetermined for:the header (target: billing type, source: sales document type)the item (target: billing type, source: sales document type, itemcategory)The following controls are found at header level:Reference document: which documents may be used as reference

for billing?Determination of foreign trade data, allocation numbers, referencenumbers, and item numbersThe following controls are found at item level:Billing quantity: which quantity should be invoiced - the order ordelivery quantity?Pricing and exchange rateShould pricing, for example, be carried out again or should pricesfrom the order be copied over, and at what exchange rate?Updating the quantity and value in the reference document

Where should the conditions in the billing document be carriedover (for example, copying over shipment costs from the shipmentcost document)?

3. Which data is updated when you create a billing document?A. Document flow of the preceeding documents is updated,

Accounting document is generated and the FI transaction iscompleted.

4. In the standard system, account determination is dependent on

certain factors. What are they?A. The sales revenue accounts are created in FI, in order to receive

certain evaluations and to be able to carry out reconciliation withthe Profitability Analysis.For this reason you can set different criteria for accountdetermination of the relevant accounts. The following criteria aredefined in the standard system:Chart of accountsSales organizationAccount assignment group for payer

(this allows you to divide customers into different groups, e.g.domestic and overseas customers)


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Account assignment group for materials(this allows you to divide materials into different groups, e.g.services and retail goods)Account key(account keys are assigned to the condition types in the pricing

procedures, this allows conditions such as freight conditions toposted to special freight revenue accounts).You must ensure that the configurations you make for accountassignment match the configurations in FI and CO.

5. What is particular about pricing in BillingA. At the time of billing, the following possible pricing types may be

set for the items:A: The pricing elements are copied from the reference documentand updated according to a scale.

B: Pricing is carried out again.C: The manual pricing elements are copied, and pricing is carriedout again for the others.D: The pricing elements are copied unchanged from the referencedocument.G: The pricing elements are copied unchanged from the referencedocument. The tax conditions are re-determined.H: The pricing elements are copied unchanged from the referencedocument. The freight is re-determined.The system administrator can assign a pricing type or define new

ones for each billing type and item category combination.The system administrator can also define how the rate isdetermined.

6. What is the billing date and where is it determined?A. You can process invoices periodically. All deliveries due for billing

on a certain date can be combined into one collective invoice.To do this, you must first:maintain individual billing dates in the factory calendar usingspecial rules

enter the factory calendar in the customer master record of thepayer (Billing schedule on the billing screen)When you create a document, the system copies the next invoicedate from the factory calendar to the appropriate document as thebilling date.Note:The calendar is client independent.

7. What should you remember when processing the billing worklist?

A. If you are working with the billing due list, enter the selectioncriteria, for example, sold-to party, billing date, destination


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country. The system uses the selection criteria as a basis forcombining the transactions to be billed.When selecting, you can also decide whether the billing due listshould only contain documents that are order-related, delivery-related, or both.

8. What is a rebate agreement? What are the prerequisites for rebateprocessing?

A. It is an agreement between the business and the customer. Thistakes the form of a special discount paid retroactively to thecustomer. This discount is based on the sales volume for thecustomer over a specific time period. The rebate is only relevant ifthe customer purchases the required sales volume.

9. How do you define rebate agreements and how is the rebate

amount calculated?A. As defined above.

A rebate agreement usually consists of a number of individualagreements in the form of condition records. A rebateagreement number uniquely identifies a rebate agreement and thecondition records it contains.The rebate agreement includes general information and terms thatapply to all the condition records it contains. For example, themethod of payment and the rebate recipient you specify for arebate agreement will apply to all the condition records you create

within the agreement

10. Credit and debit memos are created in the R/3 standard systemwith reference to which document types?

A. You can create credit and debit memo requests:

Without reference to a previous business transaction

With reference to an order

With reference to a billing document

11. Which data can you change in the billing document once it has

been transferred to Financial Accounting?A. Output Data.

12. What is a billing plan in the R/3 System?A. When processing an order, instead of storing a single billing date,

you can store a detailed billing plan with several billing dates inthe sales document at item level.

13. A billing transaction can be blocked by setting a billing block inwhat documents and at what level.

A. Sales Order at the header and item level.


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14. SAP provides a tool to perform collective billing, What documentscan be created using this tool?

A. By processing billing due list.

15. When you create a down payment invoice does the system create

an accounting document and if it does what type of document?A. The down payment request (SD) is automatically posted in

Financial Accounting (FI) as a down payment request (posted as anoted item). The item has special G/L indicator F, which ensuresthat posting is statistical. Posting is made to a differentreconciliation account, which allows you to differentiate downpayment requests from other receivables.

16. What is account determination based upon?A. The sales revenue accounts are created in FI, in order to receive

certain evaluations and to be able to carry out reconciliation withthe Profitability Analysis.For this reason you can set different criteria for accountdetermination of the relevant accounts. The following criteria aredefined in the standard system:Chart of accountsSales organizationAccount assignment group for payer(this allows you to divide customers into different groups, e.g.domestic and overseas customers)

Account assignment group for materials(this allows you to divide materials into different groups, e.g.services and retail goods)Account key(account keys are assigned to the condition types in the pricingprocedures, this allows conditions such as freight conditions toposted to special freight revenue accounts).You must ensure that the configurations you make for accountassignment match the configurations in FI and CO.

17. What does a billing document update in CO-PA?A. Order processing is the focal point of SD activities and contains

three principle stages:

Order entry, delivery with goods issue, and billing.


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In costing-based profitability analysis, data is transferred to CO-PAas soon as an order is entered. The system generates a line itemwith a profitability analysis document for each sales order item. Inthe same way, the billing data are also transferred online. Thesystem generates a line item for each billing item.

In account-based profitability analysis, data is transferred to CO-PA when it is posted to FI from SD. This means that when thefinancial accounting documents are generated for goods issue andin billing, the system creates line items in CO-PA and transfers thedata to the accounting valuation base. Data is not transferredwhen a sales order is entered because nothing is posted to FI atthat stage.


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Credit Management

1. What do we use Credit Management for in the SAP System?A. An independent function for credit/risk management is available in

the SAP system alongside Financial Accounting and Sales andDistribution to minimize credit risk when delivering goods orproviding services. With the credit management function, you candefine how a customer is to be handled in terms of creditand set the system to respect these credit procedures inrelated business transactions

2. At what organizational level does the credit limit check take place?A. The total of the limits at the level of the credit control areamust not exceed the total limit for all credit control areas. The

credit limits at the control area level are checked duringsales order processing.You have four ways of determining a credit control area:Company codeSales area (sales organization, distribution channel, division)The sales areas can be assigned to a credit control area inCustomizing (Enterprise Structure Assignment Sales andDistribution Assign sales area to credit control area).Customer master (payers sales area segment) User exitEXIT_SAPFV45K_001

You can use this user exit to derive the credit control area from allthe fields in the sales order header.

3. What is a risk category?A. Risk Category enables the credit manager to classify customers

according to commercial risk. Along with the document type,the risk category helps to determine which kind of credit check thesystem automatically carries out. For example, you may want tocarry out stringent checks at order receipt for high risk customers,but waive a credit check for customers with a very strong payment

history.


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4. You can use Customizing to control which business transactionsshould be blocked if the credit limit is exceeded. Which are they?

A. You can prevent the creation of the confirmed quantity for adelivery, but transfer of requirements takes place anyway.

With the Customizing we can block the following businesstransactions related to anOutbound Delivery:Output determinationPickingPackingGoods Issue

The subsequent functions related to an Order can also beblocked thru customizing:

Output determination (Order confirmation note)Transfer of requirements / Availability check (Confirmed qty /purchase requisition)Shipping (worklist shipping)Copying control for Delivery (delivery)

5. What can be assigned to a credit control area?A. The credit control area is an organizational unit that specifies and

controls the credit limit for a customer.Depending on your company requirements, receivables can be

managed using a central or a decentralized credit policy.With a decentralized credit policy, each company code candetermine its own credit data for its customers.A sales organization is assigned to only one company code. Abusiness transaction is assigned to only one credit control area.In a centralized organization, company codes are combined intoone credit control area for Credit Management. In this way, youcan carry out Credit Management for the customer acrosscompany codes.As of Release 4.0, additional criteria can influence determination

of the credit control area. Determination is carried out in thefollowing sequence:User exit (EXIT_SAPFV45K_001)Sales area segment from payer master record (Credit control areafield in the Billing view)Sales areaCompany code for the sales organizationDetermination via the company code corresponds to thefunctionality previously available. This form of assignment is stillset as the standard.

Only header data from the sales order is considered for the userexit.


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A change to the credit control area is only allowed if nosubsequent documents exist.

6. Where can you manage currencies for credit management?A. If the credit control area includes company codes with a local

currency that differs from that of the credit control area, then thereceivables are recalculated in the currency of the credit controlarea.Any open order, delivery or billing values are also recalculated inthe credit control area currency.

7. When does the system carry out credit checks?A. Use the system settings to specify when you would like to carry

out a credit control check. You could, for example, require thatchecks be carried out only during sales order processing.

Subsequent functions in Sales and Shipping cannot be carried outas long as the relevant document is blocked by a credit check.A check carried out at goods issue can no longer block thetransaction, as goods issue is the final function in Shipping. If acredit check is carried out during goods issue and the transactionexceeds the credit limit, it is not posted for delivery. The systemissues an error message.The credit control area, the risk category of the customer, and thebusiness transaction all influence the type and scope of automaticcredit checking.

Credit groups combine different business processes that are to betreated in the same with regards to the credit check. These creditgroups are assigned to the sales document types and the deliverydocument types, for which a credit limit check is to be carried out.You determine for each item category, whether an item of thatitem category is included in the credit functions (check and updateof open credit values). The Active receivables field must beactivated for item categories that are to be taken into accountduring the credit check.You can also call a check from the control table for automatic

credit control. This check can be programmed in a user exit.For further information see the online Implementation Guide:Sales and Distribution System modifications User exits User exitsfor credit checks and risk management. There you will find a list ofprograms in which you have to define checks that deviate fromstandard settings.

8. What is the impact of credit checking on the sales document if thecustomer is over their credit limit?


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A. If the customer is over their credit limit the subsequent sales andshipping process can be blocked. Provided that an order is blockeddue to credit check subsequent functions like printing of order,confirmation for creating of delivery can be blocked.If delivery is blocked due to credit check then printing and picking

are not possible.The standard version contains predefined requirements whichconfirm the credit status of a Sales and Distribution document. Ifthe document is blocked, these requirements are not met.Requirements are used to prevent subsequent functions frombeing carried out for blocked orders or deliveries (see the nextslide).You must first make the appropriate settings for each conditionand related subsequent function in Customizing.Make sure that the block indicator set in a checking rule for

automatic credit control is only activated when a correspondingrequirement confirms this indicator in the document as well.This allows you to determine which subsequent functions are to beallowed or prevented within your company when a document isblocked.Note:You can prevent the creation of the confirmed quantity for adelivery, but transfer of requirements takes place anyway. This isbecause it is assumed that in most cases a delivery will be madeat some point in the future.


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Cross-Functional Techniques

1. What do you know about texts in the business process?A. check take place?A. The system does the availablility check for the plant at the item

level.

2. Where is the availability check controlled?A. On the Sales and Distribution tab page in the material master you

can: enter in Gen./Plant in the availability check field, whichand/or what type of availability check should be carried out forthis material during order processing.There are also various tables in Customizing, on which theavailability check is also dependent.

3. What can you do if there are not enough available goods?A. The material can be delivered partially if the customer agrees

upon, or through availability check other plants can be checked forstocks of same material.

4. What is a requirement class used for?A. Communication between sales and distribution and procurement is

carried out via requirements.The transfer of requirements type can influence the availabilitycheck.The employee responsible for materials planning receives

information about sales orders in the system and the quantitiesthat SD needs in order to deliver these orders.The material for the order can come from in-house production orexternal procurement.If there is insufficient material available, purchase orders can bemade via materials planning.

5. What is an Account Group?A. When you create a master record for a business partner, you must

enter an account group.

The account group determines:Which screens and fields are necessary for entering master dataWhether you can or must make an entry in these fieldsHow master record numbers are assigned (externally by you orinternally by the system) and the number range from which theyare assignedWhich partner functions are valid?Whether the business partner is a one-time customer or one-timevendor.


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6. What role does the account group play for the customer masterrecord and what does it control?

A. Account group helps in determining whether data field isdisplayed, maintenance is mandatory or optional, the numberranges, partners & text of the customer master.

In the third party business transaction the Vendor delivers theGoods.In consignment stock processing goods are delivered to thecustomer but remains the property of the customer until they areactually used.

7. What are the most important influencing factors for selecting fieldswhen you maintain customer and material records?

A. Account group of Customer andMaterial type, and Industry type for the material.


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Logistics Information System

1. What is the Logistics Information System for?A. It is for Reports and analysis., evaluation & planning.

The Logistics Information System allows you not only to evaluate

actual data, but also to create planning data. The informationsystems provide an easy-to-use planning functions that are alsosupported by a forecastingfunction

The Logistics Information System (LIS) is made up of thefollowing information systems:

Sales Information System

Purchasing Information System

Inventory Controlling

Shop Floor Information System

Plant Maintenance Information System

Quality Management Information System

Retail Information System (RIS)

Transport Information System (TIS)

2. Where does the data in the Sales Information System come from?A. The following data from the sales and distribution processes

update the information structures:

Sales documents (for example: orders, returns, requests forquotation, quotations)

Deliveries

Billing documents (debit memos, credit memos, cancellations)

The data flows from the document structure to the informationstructures.

3. What are standard analyses for?
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A. Standard Analyses:In the standard system, the following standard analyses areavailable in the Sales Information System:CustomerA customer analysis is always useful if you want to access data

directly from the customer statistics. Direct access via customer ispossible and is not dependent on the sales organization.MaterialThis analysis should be used if you want to access specificstatistical data that is directly linked to a material. You can usethis analysis to answer questions such as: What quantity of aparticular material was sold?Sales OrganizationThis analysis makes it possible for you to view data from theperspective of sales organization.

Shipping PointThe shipping point analysis is based on data that has beenupdated from the creation of the delivery note. You can use thisanalysis to answer questions such as: Who delivers in what way(freight forwarding) and to where (route)?Sales EmployeeThis analysis enables direct access via the sales employee. Youcan use this analysis to answer questions such as: What salesvolume has specific sales employee achieved with regard to aspecific customer? You can use the information from this analysis

as the basis for a commission settlement.Sales OfficeThis analysis enables direct access via the sales office. You canuse this analysis to answer questions such as: What sales volumehas a certain sales group achieved in a certain division?Variant ConfigurationThis analysis enables you to evaluate data for configurablematerials. In the case of the configurable material car, forinstance, you can analyze the following questions: How many carswith the color red were sold? How high is the number of incoming

orders for cars with a particular engine power?In order to ensure that data is updated consistently and with ahigh level of performance, you need to observe certain specialfeatures during the statistics update.Exception AnalysisIn the exception analysis, you can display Exceptions, which youhave defined using the Early Warning System. The exceptionanalysis acts as a filter; this means, only the exceptionalsituations are displayed. The exceptional situations can behighlighted in color.

4. When is an info structure updated?
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A. Data analysis in the Sales Information System is based onstatistical data that has been updated from Sales and Distributionto the information structuresEvents: Sales information systemThe following data from the sales and distribution processes

update the information structures:Sales documents (for example: orders, returns, requests forquotation, quotations)DeliveriesBilling documents (debit memos, credit memos, cancellations) Thedata flows from the document structure to the informationstructures

5. What is an update analysis for?A. Updating in the Sales Information System

CurrenciesCurrency amounts are always updated in the statistics currency.The statistics currency is assigned to the sales organization. Thus,SIS allows you to analyze and compare the data of several salesorganizations that do not belong to the same company code andcould therefore have differing local currencies.You specify the statistics currency of a sales organization inCustomizing for Sales and Distribution.QuantitiesQuantities are updated in the base unit of measure. The base unit

of measure is the unit of measure in which the system managesthe material stocks. It is specified in the material master record.Weights and VolumesWeights are updated in kg, volumes in dm3.Cancellations If a sales event is reversed (that is, canceled) thestatistics are automatically adjusted to reflect this change.Returns/credit memosReturns and credit memos are updated in their own fields

6. When should statistical data be restructured?


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A. When there are missing or incorrect settings in customizing(statistics and update groups).You create or change info structuresor updates after your system goes live.Updating ofstatistical data can take place in two ways:As a synchronous update (U1)(Immediate start, i.e., when an

event takes place that triggers an update)As an asynchronousupdate (U2)(Delayed start, i.e., updating is slightly delayed afteran event that triggers an update).Availablity check takes place at Order & Delivery level.It is controlled at Req. Class, SCHEDULE LINE CAT., itemCategoery & MRP type.Back order processing can be initiated.Req. Class is used for to controlling Availablity Check.Account Group controls the amount of data and the respose ofcustomer master records. functions.

Account group helps in determining whether data field is displayed, maintenance is mandatory or optional, the number ranges ,partners & text of the customer master.In the third party business transaction the Vendor delivers theGoods.In consignment stock processing goods are delivered to thecustomer but remains the property of the customer until they areactually used.An invoice is not created until the customer withdraws the goodsfrom the consignment

Stock. The customer has the right to return the goods up untilthat point.Credit Management is used for Specifying Companies Credit Policy& how a customer is to be handled in terms of credit and set thesystem to respect these credit procedures in related businesstransactions.Risk category is the risk associated with the payment guaranteeforms for the receivables. Order, Delivery & Goods Issue businesstransactions should be blocked if the credit limit

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