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
Company
Company
Company

code
code
code
code

company
Credit control area
Controlling area
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. Its a production facility or

Material
Requirement planning ( MRP) in the System.

12)

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.

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.

13)

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.
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.