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SAP SD Interview Questions and Answers

Explain credit management.

Credit management is to manage the credit limit of the customers which takes place in the credit control area. Credit Management can be implemented either centralised or decentralised or somewhere in between according to the corporate requirements.
Credit limits and credit exposure are managed at both credit control area and customer level. We can assign customer specific credit control areas and specify the appropriate credit limits in the customer master data record.

Example: - If it is centralised, then you can define one credit control area for all of your company codes.

If it is decentralised, then you have to define credit control area for each company code or each group of company codes.

What is SAP SD? What are the primary functions of Sales and Distribution?

SAP SD handles all the processes of order to delivery. It executes the business processes used in selling, shipping and billing of product and services.

  • Inquiries & Quotes
  • Sales Orders
  • Sales Return
  • Consignment
  • Contract & Scheduling Agreements
  • Credit & Debit Memo requests
  • Rush Orders & Cash Sales
  • Back Orders
What is ‘consignment stock processes'?

In consignment processing, goods are delivered to the customer but remain the property of the company until they are actually used. An invoice is not created until the customer withdraws goods from consignment stock.

Consignment fill-up and Consignment pick-up are not relevant for billing.

In Consignment issue both the customer special stock and the stock in the delivering plant are reduced. This transaction is relevant for billing.

To reverse a consignment issue, this is processed with document type CONR(Consignment return).

Explain what is the difference between rush order and cash sales?
  • Rush Order: Order delivery will be done on the same day while billing will be done later
  • Cash Sale: Billing and order delivery will be done on the same day
What is the organizational structure in sales and distribution?

The organizational structure in sales and distribution is

  • Sales Organization
  • Distribution Channel
  • Division
  • Sales Office
  • Sales Group
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