20 Most Common SAP ERP Interview Questions and Answers Updated 2022

1. What is an ERP?

ERP stands for Enterprise Resource Planning Software and is an integrated computer-based system used to manage a company’s resources effectively. It ensures smooth information amongst various departments in an enterprise or a company and manages workflows.

2. What are the different types of ERP’s ?

  • SAP
  • Baan
  • JD Edwards (now acquired by Oracle)
  • Siebel
  • Peoplesoft  (now acquired by Oracle)
  • Microsoft Dynamics

3. What are other ERP systems available in the market?

Some of the major ERP systems other than SAP are from Oracle, Microsoft, and Infor. QAD, Lawson, Epicor, Sage, and IFS are the players in mid-size businesses, and Exact Globe, Syspro, NetSuite, Visibility, Consona, CDC Software, and Activant Solutions round out the ERP vendors for small businesses.

4. What is ODS?

ODS is Operational Data Store. It is a component of the business warehouse. It is mainly used for reporting of details.

5. Name the various stages of business that can be managed using ERP software.

ERP software packages can be used to manage the various business development stages including product planning stages, cost, and product development stages. ERP software packages can also be used to manage the various manufacturing stages involved in a company. The marketing and sales stages of the company can be managed and monitored using various ERP modules. ERP modules are designed to manage and report on the inventory management stages of the company. Finally, ERP software can also be used to manage the shipping and payment stages of the business.

6. What are the major benefits of reporting with BW over R/3?

Business Warehouse uses a data warehouse and OLAP concepts for analyzing and storing data While the R/3 was intended for transaction processing. You can get the same analysis out of R/3, but it would be easier from a BW.

7. What is NetWeaver?

Netweaver is an integrated technology platform such that all the products in the mySAP suite can run on a single instance of Netweaver known as SAP Web Application Server (SAP WEBAs).

The advantage of using Netweaver is you can access SAP data using the web (http protocol) or even mobile.  Thus you can save on costs involved in training users on SAP Client-side GUI.


8. What is a transaction in SAP terminology?

In SAP terminology, a transaction is a series of logically connected dialog steps.

9. Mention what are the different types of variables?

Variables are used in different application

  • Characteristics variable
  • Hierarchies
  • Hierarchy nodes
  • Text
  • Formulas
  • Processing Types
  • Replacement Path
  • User entry/default type

10. Explain what is meant by “Business Content” in SAP?

Business Content in SAP is a pre-configured and pre-defined model of information contained in the SAP warehouse which can be used directly or with desired modification in different industries.

11. What is a MultiCube?

MultiCube is an Infocube that is a collection of several BasicCubes. Using MultiCubes one can test the data from BasicCubes in a single context. MultiCubes itself doesn’t contain any data but works only on data from BasicCubes.

12. What is a pooled table?

Pooled tables are used to store control data. Several pooled tables can be united to form a table pool. The table tool is a physical table on the database in which all the records of the allocated pooled tables are stored.

13. What are the common transport errors?

The common transport errors include

  • Return code 4: Imported with warnings, generation of program, columns or row missing
  • Return code 8: Imported with syntax error, program generation error, dictionary activation error, etc.
  • Return code 12: Indicates import cancelled due to object missing, object not active, etc.
  • Return code 18: Indicates import cancelled due to system down while import, user expired during import and insufficient roles or authorization


14. Mention what are the three stages of data-mining?

Three stages of data-mining include:

  • Initial Exploration
  • Model building
  • Deployment

15. What is AWB?

AWB stands for Administrator Workbench. It is a tool for monitoring, controlling, and maintaining all the processes connected with data staging and processing in the business information warehousing.

16. What is LUW (Logical Unit Of Work)?

LUW is a span of time during which database records are updated either commit or rollback


17. What are the different types of the source system in SAP?

The different types of source systems in SAP include:

  • SAP R/3 source system
  • SAP BW
  • Flat files
  • External Systems

18. What are the two types of services that are used to deal with communication?

To deal with communication, you can use two types of services

  • Message Service: In order to exchange short internal messages, this service is used by the application servers
  • Gateway Service: This service allows communication between R/3 and external applications using CPI-C protocol.

19. What are internal tables, check tables, value tables, and transparent table?

It is the standard data type object; it exists only during the runtime of the program.

  • Check the table will be at field level checking
  • Value table will be at domain level checking
  • Transparent table will exist with the same structure both in the dictionary as well as in the database exactly with the same data and fields

20. Mention what is ALE, IDOC, EDI, and RFC?

  • ALE: Application Linking enabling
  • IDOC: Intermediately documents
  • EDI: Electronic data interchange
  • RFC: Remote function call