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CRM stands for customer relationship management sap is software that will cover all the ways you manage customer relationships across marketing, sales, e-commerce, and customer services best-in-class system will also offer tools for personalization, customer analytics, collaboration, and social media, and more

CRM includes primary CRM functions with advanced CRM capabilities and strengthens the relationship by placing the customer at the center of your sales, commerce, marketing, and service activities. CRM is known as integrated customer relationship module by sap 

Why CRM 

  • That build effective communication with customers
  • It maximizes the profits and increases the sales
  • Analyzing partner vendor and customers
  • Discovering a new customer and maintaining relationships with existing customers   
  • CRM enables trade promotional management to improve visibility and controls the trade promotion process. 

Sap CRM as one component known as CRM analytics which allows the organization to analyze all the information and relates to lead tasks associated with customer management used in defining outlining future strategy and providing products to the customers what they need such as complaints handling, quality of services, assistance in sale related activities

1. Does SAP CRM act as a database?


SAP is the software for many multiple business functions that will manage complex business processes. We have heard CRM next to SAP, stands for customer relationship management. There is no business that exists without its customer base.

                Build a bridge, not a wall

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              Relationship bridge correlates

                         two sides

          The business offer available for customer satisfaction

                      In-between C and M


SAP (System application, and product in data processing). CRM (customer relationship management). SAP CRM is a component engineer in an association

That deals with, how to handle varied activities such as delivery, invoicing, account receivable, decision making along with how to handle customer pros and cons efficiently and effectively. The organization brings out developments in an energetic environment that resolves customer doubts with the use of key activities. SAP CRM which also called an integrated relationship management module. SAP CRM act as an essential component for planning business strategies it could be small- or large-scale operations.  Enterprise resource planning that contains SAP CRM as a fragment. ERP which is used to design strategy for business processes correlates to SAP CRM and also integrates towards SAP and NON-SAP.

SAP CRM contains Distinct Submodules That Support The Key Functions Of The C R M Those are –

  •   SAP CRM marketing
  • SAP CRM analytics
  •   SAP CRM services
  •   SAP CRM sales
  • SAP CRM web channels
  •   SAP CRM hybris
  •   SAP CRM interaction centre IC

 Benefits Behind SAP CRM

SAP CRM manages many sales activities such as improving team performance, reducing sales cycles, achieving customer goals, increasing revenue. That takedown to the protection of data privacy with elegant speeder communication. SAP CRM provides a clear view of market segmentation.

Feature Of SAP CRM

  • Sales service marketing is the three basic business area that supports customer improvision in all direction. SAP CRM connected to customer interaction channels like E-commerce, internet, interaction center. SAP CRM relationships equal to higher customer satisfaction
  • CRM will collect, store, and analyze information and its records by an organization about customers, that could base on E-commerce, internet, social media account, a purchase would be made on the online store 
  •  SAP CRM tool accumulates each discussion; relates a business conversation with customers. That is gathered by the company single customized dashboard, the support agent no need to log in and log out from the several systems. Copying and pasting account numbers into a different software tool to get rid of basic information about customer services. Database recollects data created about a customer across assorted tools account and system are automatically stored in the database as that could easily access by a whole team 
  • CRM affixed site to evaluate and understand their company sales management this information place inside spreadsheet it could help for executive managers who plan for the forthcoming years 
  • Sophisticated software database modern CRM that connects every single tool used by an organization to engage its customer CRM database will improve customer experiences. 

It gains a lot by data-driven companies with considering CRM database. CRM can run actionable reports on just about any aspect of company business. From sale forecast to customer satisfaction metric. 

2. What is SAP CRM business transaction process and its structure with transaction types ?

Transaction types in sap CRM in a business transaction could be sales order, service ticket, credit transaction, non-cash transaction, cash transaction

 CRM business transaction Process behind the company assimilates business structure and function that could be useable throughout the business transaction. sap C R M business transaction represents the interaction between distinctive business partners that could enable the usage of similar processing concepts and interface through the business process that makes possible the use of varied components of business transactions 

Activity that brings out lead opportunity, quotation, contract, complaints, order, service contract, service request. 

Neutral business transaction type that looks and feel of different business transaction in SAP customer relationship management is same

Structure of transaction 

The company as a precise business process along with, flexible manner it controlled and managed a business transaction in SAP CRM

SPRO path > CRM >transaction> basic setting 

SPRO path for business transaction inside sap CRM contains leading business transaction category the structure of CRM business transaction depends on it and consists of header and item level. 

Types of transaction 

  • Description 
  • Item numbering 
  • Transaction numbering 
  • Profile and procedure 
  • Leading transaction category 
  • Product determination 
  • Specific setting 

 3. What are methods of item category determination in sap CRM   

There is two item category determination are available 

1. Item category determination in sap CRM based on the affix quality of business transactions like business transaction type and item categories. We would define item category by selecting item category for IPM license and also set up item category determination by electing item category determination greater than assigned item category 

2. Advance item category determination, which determines item category from the sales company of a business transaction 

4. What is BDOC? Types and function of BDOC in sap CRM ? what are the types and classes of BDOC? 

BDOC is a canister of business data for transporting related information to the client

Types of BDOC in sap CRM 

The BDOC header and BDOC body are the two dividends of BDOC in sap CRM.

BDOC header consists of a single segment called control segment that consists of header information individual data segment consist actual table entries that prepare for a corresponding business object. 

BDOC body consists of one is more data segment another is error segment that stores error information 

The function of BDOC in sap CRM 

Business document message used in SAP CRM system is a barrel for the business data that consist business process the business document is exchanged internally within the CRM server application middleware and CRM client a business document used to carry a single unit as a business object individual slab is not required to be transferred 

 Smw01 or smw02 are used to display BDOC in a sap CRM system 

The types of BDOC 

  • Messaging BDOC
  • Synchronization BDOC
  • Mobile application BDOC

5. What is the difference between CRM and ERP? explain 

 The two software solutions automate core business processes. 

Enterprise resource planning ( ERP ) Customer relationship management (CRM ). 


MRP opens a way for varied manufacturers to understand and manage all resources needed for operating a successful business, and ERP evolved out of MRP. ERP outstretched to order management, supply chain management, inventory management, which relates to the service company. The core of ERP includes account payable, general ledger, accounts receivable, financial reporting, and payroll.

ERP controlling finance operational data through a single shared database Employ who drill down operational and financial operation data to uncover financial insight no need of IT and finance team for analysis and reporting, with this business growth improves in a faster rate, favoured data decision impacts from profit to new growth opportunities there are other benefits behind ERP element that company finance team as isolated account for all income and expenses results are tabulated at the end of each month or quarter commonly call it as closing the book with the usage of a spreadsheet, or it requires extensive manual work and finance team as to contact the varied department to call for financial information in case of ERP automating, en number of tasks the reduction time takes few days to compare to the company

ERP also introduces greater financial control into an organization such as role-based permission and the centralized system only who are improvised in proper job function and get access to improving audit trails sensitive data and reducing financial task. 


CRM is vendor software that manages company relationships and customer interaction for business processes under one shadow called customer relationship management. CRM act as a central repository for all customer data CRM tool super changed with accessible data. 

CRM features vary according to the department or company enable customer-centric experiences are 

1. customer-centric automation 

2. proactive customer interaction 

3. optimized processes

4. simplified collaboration 

5. actionable data dashboard 

6. cross-functional insight and reporting 

ERP connects the financial and operational system to the central database that helps to run company business successfully CRM will help to manage customer interaction with their business

Entire company based on ERP and CRM System, ERP primarily for the finance department and its data the sales and customer department uses customer data run by the CRM component.

Some ERP system includes CRM element in case of CRM software does not include ERP element does not belong to ERP software because it could not handle transaction data that accesses the order history of invoices but that data brought in through integration within the system ERP

The pairs CRM and ERP analyze and store data in a relational database, deliver data through traditional- premises model or software as a service ( Saas), retailer manages the software data center, customer access through the cloud.

6.    What are the key advantages of using SAP CRM for your business? explain

  • To run small scale industries its feel overwhelming to find new sales lead and field potential employee authorizing task to employ is that we have to be a master of all the trade to race with business, customer relationship management help to maintain these relationships
  • Customer relationship management as implement external integration and software module generally it includes lead generation tool here some reason CRM system will address benefits of small business. 

Cost analysis and reduction 

CRM software is a steep cost, implementing CRM software system reduces the cost of the small business that includes robust financial analysis tool that integrates whole 

from banking services to customer invoicing support, forecasting, and inventory management tool in SAP CRM system the use of this tool you could understand other financial information to know detail about finance on a microscale we could predict how much of the distinctive product and services would assign at any time to maximize revenue and also this tools reduce a cost

Improving existing relationship 

When you become a regular customer of the small business, that opens a way for maintaining those relationships- and it is most important to keep those relationships green as positive and professional. so we need to know a few methods that CRM systems implement to help us with this

1. Invoicing 

The CRM system can invoice at a specific slated date with goods or pre-programmed services to mitigate these cases, integrate with the customer service system.

2. Remainder 

  • When you are input a data to the existing customer base into a CRM system and integrate 
  • You can set time for the system for a new conversation or continue the conversation. 

3. Smart message 

CRM will take customer contacts that promote you to send an e-mail that analyzes client information and former conversation that gives suggestions to the mail certain features recorded as conversation threads that might be useful for the relationship

4. Delivery of the goods through marketing

There are some marketing strategies such as product, promotion price place, and people will act as a key for marketing element for positioning the business strategy for to target new customers

we need to opt-out existing customers from the adverting customers with attracting new content that depends on your market goal software system will help you to use social media platforms for marketing your company effectively and maximize user interaction by daily tweet automatization

5. Increased conversion rate 

Tough stuff for the business owner or leader of the sales manager is that about the vast majority of the leads even when there is silence in the communication with no sign of re-returning 80 % of all the head who estimated that never convert actual sales with the usage of the CRM system this number goes up substantially sometimes even up to 30% more for potential leads turns into tangible clients due to the holistic approach the conversation increases in case of CRM took the lead conversation when implementing a cloud e-mail campaign and social media campaign accidentally 

7.   Give brief details of metadata, master data, and transaction data in SAP CRM? 


Metadata is data that gives information about meta-object it is a subset of a business document type that is downloads from the CRM server saved to the IDES database and transaction layer persistent storage used by the mobile client at runtimes its create sap CRM mobile sale application metadata is typically maintained authored and mapped to physical assets in business glossary-tool

Business data stewards and user technical data stewards and architects are the authors of the metadata glossary the detailed data of metadata is in the spoken languages so that users such as a business technician will understand the data in terms of its representation like

What is currency, how do we define, about the owner also defines all physical assets like entities, jobs, reports, attributes in the enterprise it’s not only about entities and attributes also about jobs, programs, calculations, reports, excels sheets these are all used in enterprises 

Descriptive types of metadata describe creating the data, what does it contain, interpretation of data, identifying persistence, publication date

Administrative metadata helps to manage resources when created and modifies or achieved who can be accessed how large it is 

Structural type of metadata setting of data its organization with relation to other datasets 

Master metadata 

Master metadata is the data integration type and metadata information. Shared amidst industries organization and department that includes any data related to transactional, reference, and analytical data decision based on what information is to share as master data it involves various consideration, 

Master metadata play a crucial role in the core operation of a business that could be any information includes employees, suppliers, analytics, and its data about entities such as organization, product, people, services, and the project will involve in the transaction

 master metadata does not frequently change it is used by multiple business units in a single repository at the enterprise level and stores, manage master data 


Considered cost, market data information purchased from data vendors may have a substantial cost organization consistently improvised the data efficiently. 


Master data management will establish its solution for no change in data such as data defined as constant in the varied system

Life cycle 

Data value persist for a substantial, time customers record stay relevant for the year


Data used in various sites that value tip higher as master data typical candidates for master data includes product Customer market data tend to be used by a large number of analytical tools 

8. What is opportunity management in sap CRM with an example?

Opportunity management is an integral part of sap CRM from the very start that provides a framework for presenting the sales project and tracking their progress. With this, that provides the basis for analysis and optimization of your enterprises  

during the workflow, you will receive a lead you check it and accept it, opportunity as created through the system and copies data from the lead copy control device this data includes a description for business partner and opportunity 

9. What is the difference between lead and opportunity in sap CRM explain?


The leader who used to track all the elements of the sale transaction 


opportunity is a specified sales deal that requires a relationship to an account opportunity is a record that will be related to the contact or lead recorder of the person with whom we are hoping to do business

10. How you delete out the business partner in the sap CRM system 

It takes two steps to delete a business partner in a sap CRM system such as 

Step – 1 Use transaction BUPA_DEL 

Step – 2 Established records for deletion and set relevant system in transaction BUPA_ PRE_DA. 

11. What do you mean by market plan, CRM marketing, and marketing calendar? 

 CRM Marketing 

CRM marketing display the description of how the company interact with the customer about marketing the product and services and customers by hosting special events and sending promotional mail and it contains three aspects of marketing first is company interaction with customers is it through hard copy, newsletter, sales letter, and events and the second one with the use of software company manages customer interaction third is the internet efficiency with the usage of CRM marketing team measure how marketing efforts are working to keep the customers engaged 

Customer relationship management marketing circumscribes all the ecosystem CRM marketing supports the marketer in their efforts to build and manage customer relationships manages the relationship by improvising and optimizing to drive customer retention, revenue, loyalty, and lifetime value.

Market plan 

The market plan outlines the document with marketing efforts of a business in the forthcoming period could take a month or year that is to define the promotional marketing strategy and advertising activities which will plan up to the day

There are seven types of market plan 

Market research 

Target market 


Competitive analysis

Market strategy 



Marketing calendar 

Marketing calendar covers your marketing activities for the entire year and requires an initial investment in time that could pay off later 

12. What is the partner function in SAP CRM? 

  Partner function presents the detailed study of the person with whom the business process will carry and is a kind of relationship that depends on what action is performed by the partner towards the connected customer. Partner function in sap created by using transaction code that is VOPAN or its navigates to the below path that is displayed IMG -sales and distribution – Basic function- partner determination – set up partner determination – set up partner determination for customer master.

13. Explain the rebate processing function in sap CRM? 

Rebate is to build long-term customer relationships is a sales strategy. And this is a special discount paid retroactively to the customer based on specific terms and conditions defined in the rebate agreement and assigned in the debate agreement and rebate processing available in the SAP CRM Web Client UI 

14. What are the 4different ways to create a marketing campaign in CRM?

There are four key ways to create a marketing campaign 

1. Contest marketing campaign 

This campaign encourages new organic websites and traffic. And spread awareness of the company and its product. 

2. e-mail  marketing campaign 

A company uses a marketing campaign to contact current customers, to inform them about sale coupons, discounts, and new products and services.

3. Product launch campaign

Launching a new product aimed at spreading awareness of the new product. The reason behind customer need and its executed by the manufacturer in collaboration with any distribution partner 

4. Traditional media campaign 

This media campaign will rely on traditional media outlets to promote a product or services such as TV, print, advertising, radio, and direct mail advertising

15. Method of calculating tax while billing in sap CRM? 

Transaction tax engine ( TTE ) calculates billing for CRM sales. Which determines and calculates invoice statements for external calculation used in both CRM and SRM

16. What is the action profile in SAP CRM 

Action profile is a post-processing framework. And it automatically triggers output and follows up activities. The different application uses action process such as billing, case management, etc.

17. What is the component in the software tool of sap CRM? 

SAP CRM analytics

SAP CRM sales

SAP CRM marketing

SAP CRM interaction center IC

SAP CRM service

SAP CRM hybrids

18. What are the sap CRM server components 

  • Adapter: with the help of internet data exchange between an external system and CRM middleware
  • CRM enterprise function 
  • CRM middleware – the tool which 

help the system to interact with SAP and non- SAP system 

The other component of sap CRM are

  • Mobile devices
  • Internet
  • Other hand devices
  • Enterprise portal 
  • SAP BI ( analytical reporting )
  • SAP ECC ( backend system ) 
  • SAP SCM 

19. Explain the text determination 

The process of configuring and creating new text for flow in the transaction and defining texts will be known as text determination.

 The text would be sales text, customer text, item note, packing note it picked from corresponding master data or entered manually in screen. 

20. Elaborate availability of partner function in sap CRM  

Which describes the organization and people with whom the business will carry. Partner function is widely used in the ECC system its a kind of relationship between two customers.

21. Why does the company uses SAP customer relationship management? 

SAP CRM deals with managing customers effectively and efficiently today competitive edge company as to make a change in the product and services which assigns key activities which is helpful for the customer services it is an integrated customer relationship management module 

22. What are adapters in CRM? 

The adapter allows for communication between two endpoints like a CRM system and a connected ERP system that exists in any hosting environment. 

23. What is an activity journal? 

Activity journal that will record and update the information available from telephone calls and customer visits. The information inside the activity journal is product-related and analyzes the sales data, tracks the progress of the team and distribution of the sample in the pharmaceuticals industry, and detects the possible problem area.

24. What is the market plan? 

A market plan is one type of document which lays out marketing efforts of business in the upcoming period, which is usually a year, it plans for, promotional,  marketing strategies and advertising activities plan for the period  

25. What are the ways to handle customer complaints with CRM software? 

Organization of customer data: Our prospects will reach out 

to us through multiple sources such as websites, social media, search engines, pad-ads, calls, etc. 

Landing page customer sources logged in by the CRM software for helping in understanding the marketing efforts and identify which channels perform better. For this reason, customer service will leverage this software to offer personalized service that will make customers spot on the resolution 

Webform setting: This is another way to manage customer complaints using communication channels that will reduce complaints that help customers to request or check on anything they need or even download relevant resources, or that make a way to post any queries it gets answered 

Automated workflow: That tracks customers in every stage of the conversion funnel enhance e-mail marketing strategies with automated workflow based on how and when the customer engages with your brand

26. What is service request management? 

The service request management is monitors and reports the agreed key performance indicator that corresponds with compliance. It is a duty to provide information to the user. 

27. What is the standard transaction type for a quotation? 

There are five standard transactions type for a quotation such as public- key, pay- to-script- hash, Pay- to -public – key – medley, multi-signature Data-output

28. Mention how CRM assigns business roles? 

Business role act as a central object for controlling the navigation bar. And determines the varied profiles of the UI and what is visible on the UI. 

Assignment of business roles 

  • Step1: Go to IMG path
  • Step2: Pick a suitable role that you want, create a copy of, and note the PFCG role ID.
  • Step3:  Create a Z copy of the standard PFGC role by referring PFGC transaction 
  • Step4: Once the PFCG role is created and go to the IKG path 
  • Step5: IMG path 

29. What is an outline agreement with types? 

It’s a longer-term arrangement between a purchasing organization and a vendor regarding the performance of services with two types, scheduling agreement, and contract base.

30. What is the meaning of LP SAP? 

LP SAP is an optimization process that is used in the medium for long-term planning horizon to create a period of packaging by multiple planning


         SAP CRM will act as a business tool for many processes. It can implement many customize business processes integrated into the sap and nonsap CRM system to help to achieve CRM strategies. Customer relationship management software-30-sap-CRM-interview-questions are is used by companies to keep a record of their interaction with potential and current clients. 

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