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Order to cash cycle

Former Member
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Hi SAP Gurus,

I need to know the following things:

1) the basic difference between Delivery and shipment, picking and packing, billing and invoice

2) what should be the cycle flow ?

3) I have created an order and the document flow is

std order : completed

outbound delivery : being processed

picking : complete

goods issue : complete

What are the next steps involved to comlete the sales cycle for this.

Thanks in advance.

Naveen

Accepted Solutions (0)

Answers (4)

Answers (4)

Former Member
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SD module is highly integrated with the other modules in SAP.

Sales Order –

Integration Points Module

•Availability Check - MM

•Credit Check - FI

•Costing - CO/ MM

•Tax Determination - FI

•Transfer of Requirements - PP/ MM

Delivery & Goods Issue –

Integration Points Module

•Availability Check - MM

•Credit Check - FI

•Reduces stock - MM

•Reduces Inventory $ - FI/ CO

•Requirement Eliminated - PP/ MM

Billing -

Integration Points Module

•Debit A/R - FI/ CO

•Credit Revenue - FI/ CO

•Updates G/ L - FI/ CO

(Tax, discounts, surcharges, etc.)

•Milestone Billing - PS

SD Transaction Code Flow:

Inquiry / Document type IN

Tcode for creation VA11,VA12,VA13. tables VBAK,VBAP

Quotation / QT

Tcode for creation VA21,VA22,VA23. tables VBAK,VBAP

Sales Order OR

Tcode for creation VA01,VA02,VA03. tables VBAK,VBAP

Delivery LF

Tcode for creation VL01,VL02,VL03. tables LIKP,LIPS

Billing F2

Tcode for creation VF01,VF02,VF03. tables VBRK,VBRP

Regards,

Rajesh Banka

Former Member
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hi

2.Sales cycle:

Quotation-Order-delivery-Billing

3. proof of delivery(option) , billing

Former Member
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hi

delivery: The SAP delivery is the documented means of preparing for a movement of goods. The delivery document type controls the entire delivery document.

Delivery document is created for a sales order and for doing the delivery a shipping point is required from where the goods will be actually shipped to a customer. The delivery document contains information for packing and * picking*. If packing is there then material is first packed and then it is picked for doing the delivery. The goods have to be picked completely and then PGI is done.

Shipment: The shipment document is the central element of transportation planning and shipment completion. It contains all the information necessary for carry out transportation.

Shipment can use to 1. combine deliveries into one inbound or outbound shipemnt.

2. Specify shipment stages 3. Assign goods to Handling units

4. Assign service agents 5. Specify planned transportation deadlines 6. Record actual transportation deadlines 7. define transport relevant texts

Picking: The picking process involves taking goods from a storage location and staging the right quantity in a picking area where the goods will be prepared for shipping.

Picking is carried out 1. automatically during outbound delivery creation 2. Routinely at certain times 3. Manually according to overview of the day's workload that the employee has requested.

Packing : Packaging materials are materials used for packing or transporting goods. To store the packing information for an outbound delivery in the system, you must first specify a packaging material and create material master records for different packaging materials (material type VERP). In the material master, you specify special data such as packing weight and volume permitted for each shipping material. You can also activate this field for different material types.

Selected items from an outbound delivery can be packed in an individual packaging type called a Handling Unit. The handling unit is assigned a unique sequential number from a predefined number range. The handling unit header contains information about the packaging material used in packing. The overview screen of the packaging material displays the quantities of the delivery items or other handling units. You can change or enhance the data proposed from the material master record of the packaging material to include additional information, such as a pallet number.

Packing is primarily the process of assigning delivery items to packaging materials. This produces handling units, which can then in turn be packed in additional packing materials. Multilevel packing is also possible. You can also unpack items from handling units, as well as emptying and deleting the handling units themselves.

In customizing, you specify if each delivery item category is “relevant for packing”. Possible settings are –

a. packing allowed (default)

b. packing not allowed

c. packing mandatory

The system updates the packing status for each item in the outbound delivery, for example – partially packed or fully packed.

The packing function is available in following documents –

a. Sales Orders (as packing proposals)

b. Inbound and Outbound deliveries

c. Shipment document.

The packing proposal in the order can be copied to the outbound delivery. You can control this at the header level in the copy control table for deliveries. You can make packing in the outbound delivery subject to certain conditions. You activate the settings for this in customizing (standard: packing now allowed if there is credit block).

You can change packing in the outbound delivery as long as post goods issue has not been done. Packing in the outbound delivery is copied to the shipment. You can then choose to pack all the deliveries together.

You can use user exits to specify rules for automatic packing during creation of outbound deliveries. You activate automatic packing for each delivery type separately.

Similar packaging materials are grouped together in packaging material types. The material grouping for packaging materials is used to group together materials that have similar packaging requirements (for example, materials requiring same packaging materials).

You can display the allowed packaging materials for a material to be packed. The packaging materials are proposed from the table allowed Packaging Materials for each material group which you maintain in customizing. The system checks if the packaging material being used for packing is allowed. However, if the field Material Group: Packaging material has not been maintained in the material master, this material can be packed in any packaging material – depending on the weight and volume check.

Packing instructions can be used as packing proposals for online processing or as packing rules for Automatic packing. Packing instructions determination is carried out using the condition technique, for which you must define a corresponding procedure and condition types where three standard access sequences have been provided. Automatic packing can be implemented using either packing instructions and or a customer enhancement (packing sessions).

Packing instructions consist of –

a. packing materials

b. materials to be packed

c. text items

d. subordinate packing instructions

e. rules concerning rounding, minimum quantities and so on

f. definition of a check profile

Billing: Billing related to sales module. In billing you have the information all items{ products, qties, prices}. Billing is nothing but a document which shows the direct charges . It is not a physical document.

Invoice: is FI document which will be created against the billing document. Invoice consists of only financial data related to amounts. Invoice is nothing but when one will add taxes and other indirect costs to the billing document. Invoice is a physical document which is sent to the customer . e.g telephone bill

Billing tables are VBRK and VBRP

Invoice rables are BSID and BSAD

regards

murali

Former Member
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you can use shipment documents to combine deliveries into one inbound or outbound shipment

the picking process involves taking goods from a storage location and staging the right quantity in a picking area where the goods will be prepared for shipping

packing is part of delivery- and shipment processing. When you process a delivery, you can select delivery items for packing and assign them to handling units

3.you need to create sales invoice - run VF01

do postings as well (VF02) - get acc.document

Former Member
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when I am going to vf01 and putting the delivery #, getting error message: No billing documents were generated.

Please advise.

Former Member
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1.

check billing block

2.

make sure you select correct bil.type

please provide LOG details (hit F8)

billing includes the following functions:

  • Creation of:

-Invoices based on deliveries or services

-Issue credit and debit memos

-Pro forma invoices

  • Cancel billing transactions

  • Comprehensive pricing functions

  • Issue rebates

  • Transfer billing data to Financial Accounting (FI)

Former Member
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Incase of delivery related Billing, if Delivery is incomplete & PGI not done, Billing Document will not be created. Please check if PGI is complete.

Regards,

Rajesh Banka