SAP CRM Interview Questions and Answers
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1.What is SAP CRM?
SAP CRM (Customer Relationship Management) is a software tool provided by SAP to support end to end customer related supports. It handles various activities like invoicing, delivery, decision making, and accounts receivable and so on.
2.Why do companies use SAP CRM?
SAP CRM is one of the key modules in an organization which deals with handling customer effectively and efficiently. Today’s competitive market environment, it is necessary that companies make changes in a dynamic environment and take care of all the key activities related to customer service.
SAP CRM is known as integrated customer relationship management module by SAP that helps organization to achieve their business goals and allows to perform all Customer Relationship tasks efficiently. CRM is one of key component for making business strategy for medium and large scale organizations and helps in understanding the customers, their needs and customer service effectively.
SAP CRM is part of SAP ERP business suite and is used to implement customize business processes related to Customer Relationship management CRM and to integrate with SAP and non-SAP systems. SAP CRM allows organization to achieve customer satisfaction by meeting the service expectation and providing products required by customers.
3.Mention what are the master data in SAP CRM?
In SAP CRM, the Master Data is basic data about your customer which can be shared amongst different modules.
4.What are the different components under CRM?
- SAP CRM sales
- SAP CRM marketing
- SAP CRM analytics
- SAP CRM service
- SAP CRM web channel (E-Marketing, CRM mobile etc,)
- SAP CRM interaction center
- SAP Hybris
5.Explain what is Activity Journal?
You can record and update information from customer visit or telephone call in Activity Journal.
6.Mention what is the standard transaction type for Quotation?
The standard transaction type for quotation is AG, and the item category is AGN.
7.Explain few key advantages of using SAP CRM?
It allows you to use cross-industry and industry-specific end-to-end business processes.
You can use flexible and process-based deployment options.
It provides you an open adaptable technology platform powered by SAP NetWeaver.
8.Which version of SAP CRM that you have used?
SAP CRM 2008 (7.0) released in 2009 as part of SAP Business Suite 7.0.
SAP CRM 2007 (6.0) released in 2007.
9.Explain what is partner function in SAP CRM?
As the name indicates partner function describes the organization and people with whom the business is done, which includes any kind of business transaction. Partner function includes information like:
- Sold to party
- Ship to party
- Bill to party
- Payer
10.Explain SAP CRM Architecture in detail?
SAP CRM consists of various components that allow you to integrate CRM module with other SAP and non-SAP modules, internet, mobile devices like smartphones, tablets, and enterprise portal.
In the center, it has SAP CRM server which has sub components like:
- CRM Enterprise Functions
- CRM Middleware
- Adapters to communicate with hand held devices and internet.
SAP ECC/R3 system is used for backend, SAP BI system is used for analytical reporting and SAP SCM is used to enhance the capabilities of SAP CRM module.
You can see SAP CRM architecture and all its key components:
- SAP ERM Server (CRM Enterprise, CRM Middleware, Adapter)
- SAP ECC as backend system
- SAP BI for Analytical Reporting
- SAP SCM
- Mobile and hand held devices
- Internet
- Enterprise Portal
11.Explain what is Actions in SAP CRM?
“Actions” in SAP CRM are a way to add functionality to objects. For example, to send quotation to the customers from the quotation document, you can use Actions. Another use of actions is, for instance, creating in follow on document.
List out the standard transaction types for sales?
Some of the standard transaction types for sales are
- LEAD-lead
- AG-Quotation
- Opt-opportunity
- OPSM-Sales methodology
- TA-Tele Sales, etc.
12.Why do we need to integrate SAP Sales and Distribution and SAP CRM module?
SAP ECC and CRM are closely integrated with each other and they have to be synchronized in some configurational areas like Sales area, Customer master records, Organizational model, etc. (Learn from SAP SD training).
Example:-
An organization model defines the sales area you should use in CRM and check in SAP ECC system. Sales area contains below components:
- Sales organization
- Distribution channel
- Divisions
You download the data from sales area to ECC system and this is performed when you configure CRM module. You need to verify the configurational data in ECC before setting up in CRM.
13.Explain what is the prerequisites to create an opportunity?
Lead is the pre-requisites for creating an opportunity. Once it is qualified as a hot lead then, it is send through workflow and then opportunity is created.
14.Explain what is the difference between a CRM lead and an Opportunity?
Lead: It is an account or contact with very little information.
Opportunity: It is a contact or account which has been qualified.
15.What is SAP CRM Web Client UI interface?
SAP GUI is used to perform administration tasks in SAP CRM. To perform customization and configuration of CRM activities, client tool is recommended by SAP known as SAP CRM WebClient User Interface.
16.How you can open SAP Web Client User Interface?
You can login to SAP CRM WebClient via SAP GUI. To open login window, you can use below Transaction code.
T-Code: CRM_UI and press Enter key. If nothing happens, it shows that you are using older version of SAP CRM.
17.How do you perform configuration in SRM Client Web User Interface?
To perform the enhancements in SAP SRM WebClient, you can use Web UI configuration and application enhancement tools. These tools allow you to add new fields, change layout, add tables, etc. to the existing applications.
In general scenario, companies don’t prefer to use standard applications and some customizations are required. These tools can be used.
- Web UI Configuration Tool
- Application Enhancement Tool
18.Explain what is logical links in SAP CRM?
The navigational bar in SAP CRM has two level menu structure. The top level menus are referred as work centers, and these work centers contain logical links that point to the actual CRM application. Below the two-level menu system, there is a set of logical links which enables the CRM user to directly create the CRM business object. These links are referred as direct links. Logical link allows navigation to different pages.
19.What is Account Planning?
Account planning function in CRM allows organizations to manage planned revenues, costs and contribution margin. Organizations can strong decisions during planning and control the costs for spends and discounts. Planning function is integrated in account management functions and can be integrated with SAP ECC and BI and reduces the effort to maintain data and increase data accuracy.
20.What are the master data in SAP CRM module?
In SAP CRM, the Master Data is basic data about your customer which can be shared amongst different modules.
21.What are different partner function in SAP CRM?
As the name indicates partner function describes the organization and people with whom the business is done, which includes any kind of business transaction. Partner function includes information like:
- Sold to party
- Ship to party
- Bill to party
- Payer
22.What is Activity management feature in CRM?
Activity management in CRM is used to administer the activities assigned to employees in an organization. Data in an activity is important source of information for all the employees that are relevant for that information.
Activities in CRM are used to record sales activities. Common activities are email or a telephone call or a customer visit or a follow up call, request to set the status to complete etc. in CRM lifecycle. Appointments, interactions logs can be marked as private. You can also create activities as subsequent documents for a wide variety of other business transactions, such as opportunities, leads, sales orders, or contracts.
Activity management can be performed at any time during CRM life cycle. When a customer contract is about to expire, you can make a telephone call to customer (activity) as a follow up document to remind the employee to make follow up call to customer and to check if he is willing to renew the contract.
23.Mention how CRM assign the business roles?
To assign business roles, SAP CRM uses two basic ways
- Indirect assignment of business roles PPOMA_CRM
- Directly through security roles assigned to user masters in SU01
24.Explain what are adapters?
A CRM middleware is used for the exchange of data between the CRM system and connected ERP system. It is also used to assign data and convert it into various formats and to connect with external systems.
25.What is an Opportunity?
An Opportunity is defined as sales prospect, requested service or product, sales volume and a sales probability. Opportunity can be a possibility of sales of service or product and can result from a bid invitation, sales deal or from a trade fair.
26.What is Opportunity Management in CRM?
Opportunity management is one of the integral part of CRM module and allows you to control sales process.
Opportunity management in Sales should be used in following scenarios:
- When Sales cycle in an organization spans for a longer time period.
- Many Sales representatives work in an organization.
- Large sales order vales and they are distributed.
27.How CRM can handle e-mails from customers?
SAP CRM provides workflow enabled email processing capabilities. It can retrieve e-mails sent from your customers, route e-mails automatically to appropriate users based on workflow rules, manage multiple attachments in emails, send automatic replies to your customer and so on.
28.What is the difference between CRM and ERP?
CRM combines sales, contact, marketing, management and customer support. ERP stands for Enterprise Resource Planning; it standardizes and streamline business processes across services, sales, finance, HR management, etc.
29.What is Opportunity hierarchy? Where do we use this?
When your sales project is split into multiple sub projects and you want to keep track of all the subprojects and to link them to sales project, you can use complex hierarchies. You can connect different opportunities to each other and this allows you to connect sales projects and subprojects with each other.
- Opportunities hierarchies can be used in following scenarios:
- To link an opportunity to sales project
- To link a sub opportunity to a product
- Combine several sales project connected with each other
- Structure sales project consists of several subprojects
30.What is a Lead in SAP CRM?
A lead can be defined as first stage of sales process. It represents a person who has shown interest in buying a service or a product. A Lead can be generated from marketing lead generation processes like trade fairs, advertisement, direct marketing or can be from sales person activities like calling or an email.
31.Explain what is IPC?
IPC stands for “Internet Pricing and Configurator.” The IPC carries a set of engines that execute pricing and product configuration functionality in a variety of scenario and sap applications.
32.What are the important components of IPC?
The important components of IPC are:
- Sales Pricing Engine (SPE)
- Sales Configuration Engine (SCE)
- Free Goods Engine
- Listing
- Free Goods Engine
33.What are the different categories of Lead?
Leads can be classified into categories: Cold, Warm and Hot by marketing department. If a lead look promising, then sales department can create an opportunity from this lead.
34.What is the difference between Lead and Opportunity?
A Lead is different from an opportunity in a manner that it is predecessor of an opportunity. Opportunities are used for more complex and longer sales project cycles, Sales Rep use opportunities to control the sales project and maximize the chance of winning customers and minimizing the sales time.
35.In real time what SAP CRM consultant to?
In real time, SAP CRM consultant analyze the business requirements and then configure the ERP.
36.What is Sales Quotation?
Sales quotation is generated to ensure that a specific quantity of product will be delivered at specific time period and at specific price.
37.Explain Quotation Processing and Order Management life cycle?
Quotation processing and order management involves following steps in SAP CRM and ECC system:
Create Quotation
A quotation is created in the system to provide the customer. Items are added for this quotation (Performed in SAP CRM).
Enter Product and configure
Next is to enter the products requested by customer. Products can be configured for every item of the quotation (Performed in SAP CRM).
Check Availability
Next is to check the availability of products for every item of the quotation (Performed in SAP CRM and ECC).
Pricing and Value
Next is to add the price of each product and the value of each item (Performed in SAP CRM).
Send Quotation
Next step is to send the quotation to the customer (Performed in SAP CRM).
38.What is an Outline Agreement?
An outline agreement is defined as an agreement that allows customer to release the products or services at previously agreed conditions. You can define conditions like price, terms of delivery, etc. and these conditions are true for all sales orders that customer creates with reference to sales agreement. These outline agreements are used for customer retention.
39.What are the different standard transaction types for sales?
Some of the standard transaction types for sales are:
- LEAD – lead
- AG – Quotation
- Opt – Opportunity
- OPSM – Sales Methodology
- TA – Tele Sales, etc.
40.How do you calculate tax in billing in CRM?
The key factor which is used to calculate the tax and for tax determination is tax event. Applicable tax type, tax rate, locations and other factors are determined. It uses decision tree to make tax determination and calculation more simple and transparent. You can also use simulation tool in TTE for tax determination and for testing customizing settings.
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