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SAP S4 HANA Interview Questions

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1:What is SKU numberin SAP S4HANA?

Stock Keeping Unit also referred as SKU number is a unique code used to identify particular line items.

2: What are APS, ASN and ASRS?

APS: It stands for Advance Planning and Scheduling

ASN: It stands for Advanced Shipment Notifications

ASRS: Automated Storage and Retrieval Systems

3:What are compliance labels?

Compliance label are used as shipping labels, carton labels, pallet labels and they usually contain bar codes. It is used for the identification of goods delivered.

4:Explain what is consignment inventory?

Consignment inventory is in the possession of the customer but still owned by the supplier. It means you will pay the supplier only when their goods are sold.

5:Explain what is chargeback?

When any shipment that does not meet the customers decided terms and conditions, a financial penalty is charged against the supplier by customer. This charge is referred as charge back. For example, lack of proper packaging or labeling.

6:Explain what is cycle time S4HANA?

Cycle time is the time consumed to get and order from order entry to the shipping dock.

7:Explain what is bonded warehouse?

Bonded warehouse is a dedicated portion of a facility where imported goods are stored before the customs duties or taxes are being paid.

8:Explain what is blind shipment and bread bulk?

When the source of the supplier is hidden from the customer, such shipment is referred as a blind shipment.

Bread bulk is referred to overseas shipments, where the cargo being shipped consists of smaller units like crates, bales, cartons and so on.

9:What are the major transportation issues in warehousing?

The major transport issues in warehousing are:



Tracking and communications

Warehouse Safety

10:Explain what is batch picking?

The technique of transporting inventory which are grouped into small batches at one go is known as batch picking.

11: Explain what is wave picking?

Wave picking is a technique of assigning orders into groups and release them together, so as to allow several activities to run parallel and complete the task.

12:Explain what is the difference between logistics and transport?

The difference between logistics and transport is:

Logistics: Logistics is referred as the procedure of managing goods, resources and information from the source to the consumers in a manner that it fits the requirements of both parties.

Transportation: Transport is the movement of the goods from one point to the other. It is considered as part of logistics.

13:In inventory management what do you mean by allocation?

It is a demand which is created by the Sales Order or Work Orders next to a particular team.

14: Explain what is a capacity requirement planning?

It is a process for determining the quantity of machine and manual labor resources necessary to assemble a production.

15:Explain what is activity based costing?

It is a method which helps in the breakdown of the costs into specific activities in order to maintenance of accuracy in the distribution of costs in product costing.

16:Explain what is the meaning of Triage?

The sorting of products or goods based on their condition or quality is referred as Triage. Some of the goods need to be repaired and sent back, others have to be sold off as used or defective goods.

17:Explain what is meant by Reverse Logistics?

Reverse Logistics is the collection of all processes that come into play for goods that move in the reverse directions which means transportation of goods customer to the business.

18: What are the main supply chain challenges companies faces today?

The five big challenges that companies face today is,

Ignoring the continued growth of e-commerce as a channel in the industrial sector

No attention to the potential risk like volatile transportation costs

Over expectation that supply chain management technologies will fix everything

Over-reliance on past performance to predict future sales

Increase complexity added to supply chain operations with implementation of unnecessary technologies

Lack of understanding of the full capacities of suppliers and service

19:What are the areas should be focused more in order to improve warehouse transportation?

The areas should be focused more in order to improve warehouse transportation are:

Delivery Frequency

Turnaround Times

Journey Times

Fixed Routing

Unification of product

Performance standard

Vehicle fill


Vehicle and operational records


20:Explain what is WTS (Warehouse Tracking System)? How does it work?

WTS or Warehouse Tracking System is a software application which is specifically designed for the warehouse industry. It uses the system of barcode labels which allows you to track product movement, audits and shipments easily. It enables you to identify each piece of stock by a unique serial number.

21:What are the types of SAP S/4HANA Users?

The different types of SAP S/4HANA Users are:

Occasional − These users types occasionally use the system and need simple and easy-to-use applications. Expert − These users type is a fully trained SAP user who knows the system effectively and uses multiple systems and different UIs. Developer − These users are responsible for adaption and extension of existing applications. These users have to access several applications with different user interfaces.