💡 SAP SD Item Category Interview Questions & Answers (With Scenarios)
Preparing for an SAP SD interview? One of the most important areas is Item Category & Controls. In this post, we cover 47 basic to advanced questions with real-time scenarios and answers.
Basic Interview Questions
1. What is an Item Category in SAP SD? Why is it required?
Item Category controls the behavior of items in a sales document (pricing, delivery, billing). It differentiates between stock, free-of-charge, and service items.
2. How does SAP determine the Item Category in a sales document?
Based on 4 factors: Sales Document Type + Item Category Group + Usage + Higher-Level Item Category.
3. Which configuration table is used to control Item Category determination?
Table T184. Path: SPRO → Sales & Distribution → Sales → Sales Documents → Sales Document Item → Assign Item Category.
4. What are the main elements that influence Item Category determination?
Sales Document Type, Item Category Group (Material Master), Usage, Higher-Level Item Category.
5. Difference between TAN (Standard Item) and TANN (Free of Charge Item)?
TAN: Pricing active, delivery & billing relevant. TANN: No pricing, delivery relevant, not billing relevant.
6. What is the use of Item Category Group in the material master?
It classifies the material for Item Category determination (e.g., NORM, BANS, DIEN).
7. Where do you maintain the default Item Category for a material?
In Material Master → Sales: Sales Org. 2 → Item Category Group.
8. What is the role of Usage and Higher-Level Item Category in determination?
Usage allows overriding for special processes. Higher-Level IC is used in BOM scenarios.
Intermediate Interview Questions
9. Control functions available in Item Category?
Pricing, Billing relevance, Delivery relevance, Schedule line, Credit check, Picking, POD, Returns.
10. Difference between Schedule Line Category and Item Category?
Item Category → sales order behavior. Schedule Line Category → delivery aspects (ATP, requirements, goods movement).
11. How do you configure new Item Categories?
Copy a standard Item Category in VOV7 and adjust as per business needs.
12. When would you copy a standard Item Category to create a custom one?
Example: Free-of-charge item but still requires delivery & billing copy.
13. What is the significance of Business Data & Control Data in Item Category config?
Business Data → Pricing, Billing relevance, Statistical item. Control Data → Delivery relevance, Returns, Schedule line allowed.
14. How do Item Categories influence delivery & billing?
If delivery relevance = blank → no delivery. If billing relevance = blank → no billing.
15. Difference between Manual vs. Automatic Item Category determination?
Automatic: System picks based on determination table. Manual: User overrides if allowed.
Advanced Interview Questions
16. Can multiple Item Categories be determined for a single line item?
No, only one per item. Manual switch allowed if alternatives exist.
17. What happens if no Item Category is found?
Error: 'Item category cannot be determined.' Check T184, Material Master, Doc Type, Usage, Higher-Level IC.
18. Relationship between Sales Doc Type, Item Category, Schedule Line Category?
Sales Doc Type + ICG → Item Category. Item Category + MRP → Schedule Line Category.
19. When would you deactivate pricing in Item Category?
For free/statistical items (samples, promotions).
20. How do you make an Item Category delivery relevant but not billing relevant?
In VOV7: Delivery = X, Billing = blank.
21. Can Item Category trigger a billing plan type?
Yes, via 'Billing Plan Type' in Item Category.
22. Impact of Item Category on incompletion log?
Fields like Billing relevance, Delivery relevance trigger incompletion checks.
23. Item Category for Third-Party Sales?
TAS: Delivery irrelevant, Billing relevant, Schedule Line triggers Purchase Requisition.
Scenario-Based Interview Questions
24. Sell goods free of charge but still track stock?
Use TANN (Free of charge) or custom Z-category.
25. Item should not go for delivery, but billing should happen?
Delivery = blank, Billing = relevant.
26. Sales order created, but delivery not happening?
Check Item Category → Delivery relevance flag.
27. Consignment process Item Categories?
KBN (Fill-up), KEN (Issue), KRW (Return), KRN (Pick-up).
28. Material has multiple ICGs. How does SAP pick?
SAP uses ICG in material master. Usage/Higher-Level IC decide if multiple are valid.
29. Non-stock service to be billed without delivery?
TAD (Service): Delivery irrelevant, Billing relevant.
Deep-Dive Advanced Questions
30. How to define/customize Item Category?
Use T-code VOV7. Copy a standard Item Category (e.g., TAN) → Rename (e.g., ZAN) → Adjust controls (pricing, delivery, billing relevance).
31. What is the difference between Item Category and Item Category Group?
Item Category controls behavior in sales orders. Item Category Group is in Material Master and is input for determination.
32. What is the functionality of Completion Rule?
Defines how target quantity/value in contracts are completed (e.g., fulfilled once reached).
33. Explain the term Special Stock Indicator?
Indicates special stock types like consignment, project, sales order. Example: W = Consignment stock.
34. Explain the term Billing Relevance?
Defines billing type: A = Delivery-related, B = Order-related, C = Order-related without delivery.
35. At what level do we activate Billing Block?
At Header level (Sales Doc Type) or Item level (Item Category).
36. What is the functionality of Business Item?
Business Item is not billed separately; value rolls up to the main item (e.g., BOM sub-items).
37. Explain the term Schedule Lines Allowed?
Indicates if schedule lines are generated. Not active for text items (TATX).
38. What is the functionality of Statistical Value?
Item is informational only; not considered for revenue or pricing.
39. Returns check box will be activated for which Item Category?
For returns Item Categories such as REN, RE2.
40. Explain the terms Weight/Volume Relevant?
Determines whether an item contributes to delivery weight & volume calculations.
41. Explain the functionality of Determine Cost?
If active, system determines cost for the item, useful in COPA reporting.
42. How by default is Item Category Group copied into Material Master?
From Material Type configuration (e.g., FERT → NORM).
43. What is the T-code to define Item Category and Item Category Determination?
VOV7 → Define Item Category. VOV4 → Assign Item Category determination.
44. What is the use of Usage field? Example?
Usage differentiates item processing for special scenarios. Maintained in VOV4. Example: FREE for free goods.
45. Explain the term Create PO Automatically?
Used in third-party process. If checked in TAS, system automatically creates a Purchase Requisition.
46. Which Item Category will not be relevant for pricing?
Free-of-charge items such as TANN, KLN, REN.
47. How many manual Item Categories can be assigned for one determination?
Multiple manual alternatives can be assigned, but only one can be selected in the sales order.
Key Takeaways
- Item Category is central to SAP SD configuration and execution.
- Know the 4-factor determination and where each input is maintained.
- Practice scenarios like Free goods, Third-party, Consignment, Services.
- Key T-Codes: VOV7, VOV4, and Table T184.