SAP MDG interview questions

13 min read

In this vibrant and constantly evolving environment, SAP offers a variety of opportunities not only for freshers but also for professionals. According to research, an SAP MDG has a market share of 6.8 percent. Many large and small businesses compete for candidates by offering competitive remuneration packages. So, we’re here to assist you in this regard. We’ve compiled a list of the most frequently asked SAP MDG interview questions and answers. These SAP MDG interview questions and answers can help you ace the SAP MDG interview and land the job of your dreams as an SAP MDG developer.

Q1. What is SAP MDG?

SAP Master Data Governance (MDG) is a cutting-edge master data management solution that provides out-of-the-box, domain-specific master data governance to centrally create, change, and distribute master data across your entire enterprise system landscape.


Q2. What are the different SAP products?

SAP includes the following products:


SAP S/4 HANA: A digital core that supports all critical business processes enables organizations to optimize decision-making and increase productivity.

SAP Cloud Platform: This platform creates and develops applications using cloud infrastructure software such as PaaS.

SAP HANA: It disseminates business intelligence and simplifies business operations and the IT environment, which houses all of the organization’s data.


Q3. What are Master data, Metadata, and Transaction data?

MetaData is information about data. It provides information about the structure of data or MetaObjects. Master Data is the key business information such as customer information, employee information, materials, etc. This is more of a reference data set. For example, If a customer orders ten units of your product, rather than asking him for his shipping address ten times, the same information can be retrieved from the Customer Master Data.Transaction Data is the information about daily transactions.


Q4. Can you run a business warehouse without SAP R/3 implementation?

Yes, we can run a business warehouse without implementing R/3. We can copy structures from business warehouse data sources (ODS table, Infocube) to inbound data files or use third-party tools to connect your flat files and other data sources.

Q5. What is NetWeaver?

Netweaver is a technology platform that is so integrated that all of the products in the mySAP suite can run on a single instance of Netweaver known as SAP Web Application Server (SAP WEBAs). With Netweaver, you can access SAP data via the web (HTTP protocol) or even on mobile devices. Therefore you can save money on training users for the SAP Client-side GUI.


Q6. List some benefits of SAP MDG.


The following are some of the advantages of SAP MDG.


  • Standard processes for monitoring information changes Standard work processes for ensuring information accuracy
  • Standard tools for ensuring information quality
  • Examining the duplicates
  • Data collection and cleaning
  • Business Intelligence
  • Transparency in terms of information changes
  • Transparency in the data flow


 Q7.  Mention some of the setbacks of SAP.


  • It is costly.
  • Highly trained personnel are required.
  • Long implementation period
  • Interfaces are a little complicated; does not specify where master data is stored



Q8. What are variables?

Variables are query parameters defined in the parameter query definition but do not have values assigned to them until the queries are entered into the workbooks.


Q9. What are the different types of variables?

  • Variable characteristics
  • Hierarchies
  • Nodes in the hierarchy
  • Text \sFormulas
  • Types of Processing
  • User entry/default type replacement path


Q10. Tell me about the scope of Master data.

The scopes of Master data are as follows.


  • Individual material master data creation, modification, search, and display
  • Extensive use of out-of-container material credit, including focal and order information, as well as authoritative unit information
  • Changes in master processing
  • Transferring files


Q11. Define baseline data in AP and SAP AR?

The payment terms are based on the baseline date. Baseline data is typically the document date on the invoice, but it can also be the date of passage or posting date from the ledger.


Q12. What is the difference between OLAP and Data Mining?


OLAP (Online Analytical Processing): OLAP (Online Analytical Processing) is a reporting tool designed to understand your database schema, dimensions, and composition facts.


Data Exploration: It is an analytic process that involves examining data to look for consistent patterns or systematic relationships between variables.


Q13. What are the different stages of data mining?

  • Initial Exploration
  • Model building
  • Deployment


Q14. What is the role of ODS in BIW?

The ODS object is used at the document level to store debugged and consolidated transaction records. This is a term that refers to a data set compiled from one or more data sources. This data set can be analyzed using an Infoset or Bex query. A delta update may transfer data from an ODS object to InfoCubes or other ODS objects on the same device or via systems. In contrast to InfoCubes’ multidimensional data storage, ODS objects store data in transparent and flat database tables.


Q15. Define Business Content?

It is a pre-designed and pre-defined data model contained in the SAP distribution center that can be used specifically or with desired adjustments in various industries.


Q16. What are the three layers in the R/3 System?

  • Presentation Layer
  • Database layer
  • Application layer


Q17. What is the process of creating a table in the data dictionary?

To create the table in the data dictionary, take the following steps:

  • Domain creation (data type, field length, range)
  • Developing data elements (properties and type for a table field)
  • Making Tables (SE 11)


Q18. What is BDC?

Batch Data Communication is abbreviated as BDC. BDC methods include:

  • Call transaction
  • Batch Input session
  • Direct Input


Q19. What Are Set Parameters And Get Parameters?

To use parameter IDs, you must first set values in the global memory area before getting values from the parameter ID memory area. For an online program, you must Set values from screen fields before Getting these values from screen fields.


Q20. Explain internal tables, tables with values, tables, and translucent tables?

Internal tables are a standard for entities that exist only during program execution. The table will be checked down to the field level. At the domain level, the value table will be validated. Transparent tables have the same format in both the dictionary and the database and the same details and fields.


Q21. Mention the different Types Of Source Systems In Sap?

In SAP, there are several types of source systems:

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


Q22. What is the core difference between Domain and Data Element?

Element of Data: It is a bridge between the domain and table types.

Domain: It specifies attributes like length, type, and possible value range.


Q23. What are application, presentation, and database servers in SAP R/3?

An application layer of the R/3 System comprises the application server and the message server. Application servers run application programs in an R/3 system. The application servers then communicate with presentation components, the database, and each other via the message server. All data is collected on a centralized server known as a database server.


Q24. What are the standard steps for implementing the SAP Payment Run?


The standard steps for implementing the SAP payment run are as follows:

  • Parameter entry: It includes vendor accounts, business codes, payment systems, etc.
  • Proposals Scheduling: The System generates a list of invoices that will be charged.
  • Payment Booking: Individual payments will be recorded in the ledger.
  • Making a payment form


Q25. What is Extractor?

Extractors are a data retrieval mechanism in the SAP source system. It populates a data source’s exact structure with SAP source system datasets.


Q26. What are ALE, IDOC, EDI, and RFC?

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


Q27. What is the major difference between SAP BASIS and SAP ABAP?

SAP ABAP is the programming language that SAP uses to customize, generate forms, generate reports, etc. The SAP administration module is used to control code changes, upgrades, database administration, network setup, etc.


Q28. What are the common transport errors?

The following are examples of common transportation errors:

  • Return code 4 denotes imported warnings, program generation, and missing columns or rows.
  • Return Code 8 represents imported syntax, program error generation, dictionary activation error, etc.
  • Return code 12 shows that the import was aborted because the object was inactive or missing.
  • Return code 18 suggests that the import was aborted due to a system failure while importing.


Q29. What are the types of services used to deal with Communication?

Reason Codes are tags that can represent the under/overpayments when incoming customer payments are allocated. They should not be confused with “void reason codes” used when printing outgoing cheques.


Q30. What do you mean by one-time vendors?

It is not possible in some industries to create new master records for each vendor trading partner. One-time vendor allows for using a dummy vendor code on invoice entry, and the information that would normally be stored in the vendor master is keyed on the invoice itself.

Q31. What is an extended star schema?

The fact tables and dimension tables make up the star schema. The master data tables are kept in a separate table with references to the characteristics in the dimension tables. The Extended Star Schema refers to these separate tables for master data.


Q32. What are the main functions and features of SAP MDG?

Below mentioned are the key functions and features of SAP MDG:
  • Monitoring the content of Cockpit data in SAP MDG.
  • An explicit or direct understanding of the current state of data quality
  • Continuously integrating and monitoring SAP MDG processes to resolve information-related issues.
  • Improved master data quality and control in SAP ERP Analysis that includes master data should be reliable and accurate.

Q33. What are the different Business challenges in SAP MDG?


  • Implementing master data governance in your company
  • In a distributed environment, there is a lack of transparency in the execution of master data processes.
  • Viewing master data object transactional information at the system level
  • Understanding the governed master data’s data quality



Q34. Describe the standard stages of the SAP Payment Run.

SAP’s standard stages for executing the SAP Payment Run are as follows:


  • Specifying parameters: It consists of entering company codes, vendor accounts, payment methods, etc.
  • Proposal Scheduling: The System suggests a list of invoices that should be paid.
  • Payment reservation: Actual payments are recorded in the ledger.
  • Payment form printing: Payment forms are printed.


Q35. What should be your approach to writing a BDC program?

The method for writing a BDC program should be to:

  • Create the recording.
  • Convert the legacy system data to the flat file and save it in the internal table “Conversion.
  • Then Transfer the Flat file into the SAP system using the SAP Data Transfer function.
  • Call transactions or create sessions, depending on the BDC type.


Q36. What are pooled tables?

Control data is stored in pooled tables. A table pool is formed by combining several pooled tables. A table pool is a physical database table that holds all of the information from the allocated pooled tables.


Q37. Is it possible to use SAP MDM only with SAP Exchange Infrastructure, or can a company also use other EAI tools?

The SAP Exchange Infrastructure serves as the foundation for SAP MDM. Generally, SAP solutions are powered by the SAP NetWeaver platform, emphasizing NET and J2EE/Java interoperability.


Q38. Mention the major benefits of reporting with BW over R/3.

Business Warehouse analyses and stores data using a data warehouse and OLAP concepts, whereas R/3 was designed for transaction processing. The same analysis can be performed in R/3, but a BW would be more convenient.

Q39. What are the reasons codes are implemented in Account Receivable?

Reason Codes can be assigned to describe under or overpayments when incoming customer payments are allocated. They should not be confused with invalid reason codes when printing outgoing cheques.


Q40. What is an update type concerning a Match code ID?

If the data in one of the match code ID’s base tables changes; the match code data must be updated. The update type denotes when and how the match code needs to be updated. The update type also specifies which method to generate match codes.


Q41. What are the MDM Business Scenarios?

  • Master Data Consolidation
  • Master Data Harmonization
  • Central Master Data Management
  • Rich Product Content Management
  • Customer Data Integration
  • Global Data Synchronization


Q42. What is Master Data Consolidation?

In the Master Data Consolidation scenario, users use SAP NetWeaver MDM to collect master data from multiple systems, detect and clean up duplicate and identical objects, and manage local object keys for cross-system Communication.


Q43. What is Master Data Harmonization?


The Master Data Harmonization scenario complements the Master Data Consolidation scenario by forwarding consolidated master data information to all connected, remote systems, depositing unified, high-quality data in heterogeneous system landscapes. You can synchronize the globally relevant data across your system landscape using this scenario.


Q44. Describe the capabilities and functions of SAP NetWeaver MDM?

SAP NetWeaver MDM collects master data from across the entire system landscape (including SAP and non-SAP systems) and stores it in a centralized repository. High information quality is always ensured by syndicating harmonized master data globally relevant to the subscribed applications. The central control of master data, along with maintenance and storage, helps support a company’s quality standards.


Q45. What is Parametric Import?

Parametric Import, conceptually similar to parametric search, is a new and significantly more efficient approach to importing and transforming data. The comprehensive set of distinct values for each field in the source data is listed by metric import.


Q46. Is SAP MDM an xAPP?

No. SAP MDM is a component of the SAP NetWeaver platform. SAP MDM can be licensed and used standalone in heterogeneous environments and the future in conjunction with other solutions or xApps.


Q47. Why is SAP MDM a part of SAP NetWeaver?

The SAP NetWeaver is a platform for integration and application development that aids in unifying and aligning people, information, and business processes across technologies and organizations. SAP Master Data Management (MDM) is a NetWeaver building block that enables information integrity across the business network and facilitates better information communication across a heterogeneous IT landscape.


Q48. What prompted SAP to start the development of SAP MDM?

Integration is the key to business success. And, given the prevalence of heterogeneous system landscapes today, only companies with continuous processes and optimal access to consistent information can secure a decisive competitive advantage. The underlying principle is the availability of reliable and consistent master data.


Q49. How will SAP MDM be implemented?

Along with selected system integrators, SAP’s Global Professional Services Organizations will provide implementation services.


Q50. What objects will be supported by SAP MDM? What services will be offered?

SAP MDM will support the following master data objects in its initial release: business partner, product master, product structures, document links, technical assets, and change masters. Depending on the object type, services provided will include object maintenance, object search, workflow, mass changes, change notifications, duplicate checking, and notifications for object creation and discontinuation.


Final Thoughts

TekSkilled’s SAP experts have picked these questions to give you the confidence to attempt the interview. . We at Tekskilled train students to become proficient in SAP skills under the supervision of industry experts.


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