Order to Cash

[Former Member]

Hi Experts,

Could anyone please explain how the Order to Cash process involved in SD module.If any one having the links or materials please send it to me @ srirama_3@hotmail.com

Thanks,

Satheesh

[Former Member]

Hi Satheesh,

Order to Cash is the general terminology used in SD Module.

When we come to different processes , generally every thing will start with an order and ends with collecting cash from the customer.

It not only involves the simple business flow like order - delivery - pgi - billing, but also involves the participation several aspects.

The flow differs from one process cycle to another.

But the Simple process is termed as OTC commonly.

we gave to get acquainted with all the processes and the flow of materials through all the stages.

Award if it adds information.

Thanks

Mohan

[Former Member]

<b>A standard order to cash involves the following cycle:</b>

Process Cycle: Inquiry>Quotation>Sales Order->Delivery->Billing

T Code Used : VA11 ---> VA21 -> VA01 -

---

> VL01n--> VF01

Doc Type : IN -

---

> QT -

---

> OR -

---

> LF -

---

> F2

Item Cat. : AFN -

---

> AGN -

---

>TAN -

---

> CP( mvmt type -601)

You can configure your sales order doc type to carry out requisite delivery and billing.

Thanks

Award points if helpful

[Manoj_Mahajan78]

Satheesh,

Order to cash concept is nothing but effective order management process...

Sometimes Sales process also refereed as OTC..

Reward if u finds this as helpful..

Regds

MM

[Former Member]

Hi,

It is basically an entire sales cycle.

A customer orders some items from your company by creating a sales order(Tcodes: VA01, VA02, VA03, Tables:VBAK, VBAP etc).

Your company decides to deliver the items ordered by the customer. This is recorded by creating a outbound delivery document (TCodes:VL01N, VL02N, VL03N, Tables: LIKP, LIPS etc).

Once the items are available for sending to the customer, you post goods issue which reduces your inventory and puts the delivery in transit. This will create a material document. You will post goods issue using VL02N but the material document created will be stored in tables MKPF, MSEG.

You will then create shipment document to actually ship the items.(Tcodes: VT01N, VT02N, VT03N, Tables: VTTK, VTTP etc).

You finally create a sales billing document. (TCodes: VF01, VF02, VF03, Tables: VBRK, VBRP etc). This will have a corresponding accounting document created that will be in BKPF, BSEG tables.

When customer pays to your invoice, it will directly hit your AR account in FI.

You will have to remember that these are not a required sequence. Some times, you may configure your system to create a SD invoice as soon as you create a sales order or you may not create a shipping document at all. This is where your functional consultant will come into picture to study your order-to-cash process and design/configure the system to do so.

Reward if helpful

Manoj

[Former Member]

Hi Satish

Order to cash cycle in SD starts with Inquiry -> Quotation -> Order -> Delivery ->Picking-->Post Goods Issue -> Invoice -> Accounting Document generation

For Inquiry

Doc. Type: IN

T.Code: VA11(create), VA12(change), VA13(display)

Process: Quotation

Doc. Type: QT

T.Code: VA21(create), VA22(change), VA23(display)

Process: Order

T.Code: VA01(create), VA02(change), VA03(display)

Doc. Type: OR

For Delivery

Doc. Type: LF

T.Code: VL01N(create), VL02N(change), VL03(display)

For Billing

Doc. Type: F2

T.Code: VF01(create), VF02(change), VF03(display)

For Accounting Document

T.Code: FB03(display)

Regards,

Priyanka

[Former Member]

Hi Sateesh,

The order to cash cycle in SD is shown below

Inquiry -> Quotation -> Order -> Delivery -> Post Goods Issue -> Invoice -> Accounting

The document type and transaction codes are

<b>Process:</b> Inquiry

<b>T.Code:</b> VA11, VA12, VA13

<b>Doc. Type:</b> IN

<b>Process:</b> Quotation

<b>T.Code:</b> VA21, VA22, VA23

<b>Doc. Type:</b> QT

<b>Process:</b> Order

<b>T.Code:</b> VA01, VA02, VA03

<b>Doc. Type:</b> OR

<b>Process:</b> Delivery

<b>T.Code:</b> VL01N, VL02N, VL03N

<b>Doc. Type:</b> LF

<b>Process:</b> Billing

<b>T.Code:</b> VF01, VF02, VF03

<b>Doc. Type:</b> F2

Regards

Nadarajah Pratheb

[Former Member]

Hi Satheesh,

Order to Cash process involves the following :

Sales order Entry

Order processing

Outbound delivery

Invoicing

Customer management

Many companies have implemented leading SAP business applications to help run their daily order-to-cash activities. The addition of SAP solutions empowers companies to automate many of the business processes that were done by hand less than a decade ago. However,there is still plenty of opportunity to improve accuracy and efficiency in the order-to-cash cycle through automation of the document management process.

Recently, the activity of order-to-cash has been gaining the interest of companies desperately seeking measures to speed up their rev-enue cycle, improve customer satisfaction, and increase profitability. Beyond significant cost savings, companies converting to an auto-mated order-to-cash system can realize efficiencies throughout the order management process.

Regards

Srikanth.A