The top most organizational unit in SD module is called the sales organization. All the transactions relating to selling and distribution of products or services are represented by the sales organization unit. One sales organization can be associated with more than one distribution channel. It is represented by a 4 char code in SAP and is assigned to more than one plant. These plants are in turn assigned to company code. So obviously n number of sales area can be brought under a single company code.
 

Explain the concept of a ‘distribution channel’.

After a product or service is sold, it takes various channels before it reaches the intended audience(customers). A distribution channel depicts such channels (e.g. Retail, wholesale, direct sale etc.).  In sap it is identified by a 2 char code. It is assigned to more than one sales areas.
 

Explain what a ‘distribution chain’ is.

A distribution chain is the possible combination of sales organization and distribution channels.
 

Explain in detail what a ‘sales order’ is.

Sales order is a contract between Sales organization and a customer, for supply of specified goods and/services over a specified time frame and in agreed quantity or unit.

A sales order contains:

• Organizational Data
• Header data
• Item data
• Schedule line data

Name all the ‘special sales document types’.

• SO - Rush order
• G2 - Credit
• RE - Return order
• KN - FOC(Free of charge) subsequent delivery order.
• RK - Invoice correction request.

Explain what is ‘consignment stock process’.

There can be business scenario where we allow our stock to be stored at the customer’s site. Or even if the stock or material is stored in our place, a particular amount is reserved for the customer. He may sell or redistribute this stock allocated for him at his wish. We bill him only the amount he has consumed. This business process is called ‘consignment stock process.

The special stock(consignment) in our system both customer wise and material wise. The standard sales order document type used is KB and delivery type is LF.
 

What are the Standard output types in SD?

Standard Output Types in SD are as under:

1.	Sales Order Confirmation:	BA00
2.	Outbound Delivery Note:	LD00
3.	Billing Document:	RD00
5.	Cash Sales:	RD03
6.	Inquiry:	AF00
7.	Quotation:	AN00
8.	Contract:	KO00
9.	Picking List:	EK00

What are the fields in pricing procedure?

There are 16 fields in pricing  procedure which can surely be termed as back bone when configuring pricing in SAP SD.  These are:

1) Step
2) Counter
3) Condition type
4) Description
5) From
6) To
7) Manual
8) Mandatory
9) Statistical
10) Print
11) Subtotal
12) Requirement
13) Alternative calculation type
14) Alternative condition base value
15) Account key
16) Accrual
 

What is Condition type?

Condition types are used to define how the particular condition is going to perform.  Condition types are linked to access sequence which in turn are linked to condition tables. Condition types are used wherever we use condition technique. Hence it is used in pricing, material determination, output control etc..  Some important condition types in pricing are pr00-pricing, kfoo-freight, k007-customer discount etc.

Read also:
Text Determination Procedure in SAP SD

SAP SD Books :-
SAP Sales and Distribution, Interview Questions, Certification and Configuration Books

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