SAP SD – BASIC Q & A

1) What do you know about CLIENT (Company) in SAP?

Client –A self-contained technical unit; A client is also a synonym for group.

2) What is Company Code in SAP ?

Company code can be considered as complete Accounting unit which can represent the smallest unit of external accounting.

At Company Code level we create Balance sheet required by law Profit & Loss statement.

Company code – will be an independent accounting unit & many company codes may use the same chart of account.

3) Main places where Company Code will be assigned are?

Company code company Company code Credit control area Company code Controlling area Company code financial management area

4) Tell me what all you know about Sales Organization ( SO) in SAP ?

SO highest-level of organizational unit in SD. SO Responsible for Distributing goods and services; Negotiation sales conditions;

Product liability & other customer rights of recourse.. SO is assigned to a company code.

5) Explain about Distribution Channel – DC in SAP?

DC- represents strategies distribute goods & services to customer . DC is assigned to a SO; which is not unique. Customer, Material & Condition master data can be shared by maintaining a reference/common

DC.

6) Explain Division in SAP. Division -- is used to group material & services.

One material will have only one Division. Customer, Material & Condition master data can be shared by maintaining a

reference/common Division. Cross division used to enter many materials with various divisions in a sales order. A Division is assigned to atleast 1 S.O & this assignment is not unique. We can choose division specific sales, it is controlled by customizing for sales document

type.

7) Explain Sales area in SAP

Sales area combination of a Sales organization ( S.O) , DC and Division ; ie Sales area = S.O + DC+ Division

Sales area should belong only one company code which is achieved by assigning the S.O to company code

All Sales & Distribution document is assigned to one sales area; This assignment cannot be changed.

8) Explain assignments of Sales Area

Sales area assigned- Credit Control Area. Sales office assigned to Sales Area

9) Explain about Business area ( BA) in SAP ?

Business Area – A ( Separate) business unit for which internal reporting can be carried out. Company code can be divided into many business areas

Business area is not limited by company codes ; so the business areas in all company codes must have the same description.

Business area can be shared by several company codes. Business area can be used to prepare balance sheets and profit and loss statements for Co.Co as

well as internal areas like divisions

10) Whar are main Rules for Business area ( BA) determination BA assignment by Plant & Item division. BA assignment by sales area. BA assignment by S.O & D.C, Item Division.

11) Tell me something about Plant in SAP ?

Plant -- Location where material is kept. It’s a production facility or MaterialRequirement planning ( MRP) in the System. In S&D Plant is where relevant material stocks kept Or is the location from which Materials and Services are distributed

Plant is always assigned -- Co.Code Inventory valuation -- done at Plant or done at company code level , but the stock is

managed at Storage location level. A Delivering plant assigned to -- Combination of Sales organization + Distribution

channel. Delivery Plant Determination at sales Document level is done looking into

o CMIR – Full form is Customer master info record (CMIR has precedence over customer and material master)

o Customer Master- SH- Ship to Party (Sales area- shipping tab page)o Material Master- Sales Org. 1 View.

Plant is mandatory for determining the Shipping Point; if the Delivering plant determination is not happened then --No automatic determining of shipping point /No automatic tax determination/ No ATP( availability check) can be carried out & no OBD( outbound delivery) can be set up.

12) Explain about Shipping Point in SAP

Shipping Point is always highest organizational unit in Shipping. A shipping point assigned atleast to 1 Plant; Shipping point can be assigned to N number of

plants. Also many Shipping point can be assigned to 1 plant. shipping point comes under client level.

Examples of Shipping point - loading ramp/ mail depot / rail depot etc Shipping point is mainly responsible for processing shipping. Outbound Delivery ( OBD) is processed by only one shipping point.

The shipping point is determined automatically (@ item level); for each item in the sales document. Shipping point which is automatically determined can be manually changed if required. At delivery doc level we can change shipping pint before saving the document initially.

13) Explain Shipping point determination in SAP.

Delivering Plant + Shipping condition Sales document type /Customer master data-Sold to Party (Shipping Tab Page)+ Loading group-Material master data (Sales: Gen/plant)

*Shipping condition – is taken from sales document type if available and is given importance than customer master.

14) What are the different Master data you know in SAP ?

Customer master data; Customer material information record; material master data; Condition

Master; Common master; Additional master data

15) Explain Customer master Data (CMD) in SAP?

CMD consist of mainly 3 parts .

General Data (Centrally stored & Client specific which is valid for organizational Units ) + Sales Area data + Company Code data

CMD includes all necessary data for processing -- Order, Deliveries, invoices & Customer Payment.