Order to receipt concept(OTR)

[Former Member]

Hi SD experts,

Pls explain me following concepts with examples

1) Order to receipt concept

2)Order to Cash

3)Return material authroization(RMA)

Points will be rewarded.

thanks & regards,

shabnum

[Former Member]

Order to Receipt concept is more popularly known as Procure to Pay. Procure to Pay is am MM cycle, wherein the Purchase requisition is received & based on Purchase Requisition Purchase Order is created. Material is received as per Purchase Order & the Payment is made to to Vendor for the same. In short, Procure to Pay cycle in SAP will be as under:

Purchase Requisition --> Purchase Order --> Goods Receipt --> Invoice Receipt --> Making Payment (FI)

Order to Cash is SD cycle as under:

Inquiry (VA11) --> Quotation (VA21) --> Sales Order (VA01) --> Delivery (VL01N / VL02N) (Create Delivery / Picking / Packing / Post Goods Issue) --> Billing (VF01) --> Receiving Payments. In Order to Cash capturing Inquiry & Quotation are optional in SAP System.

RMA is process of Sales Return.

Regards,

Rajesh Banka