order to cash

[Former Member]

Hi,

Please let me know what is difference between normal SD and Order to cash.

Thanks

[former_member766153]

Hi User,

Order to cash Cycle in sap SD is:-

Inquire (VA11)

Quotation (VA21)

Sales order(VA01)

Delivery (VL02N)

Picking/Packing/PGI

Invoice

Thanks

[Former Member]

This message was moderated.

[Former Member]

Hi Asha,

I hope you are aware of all the SAP modules i.e SAP MM,SAP PP,SAP QM,SAP FI and SAP CO.So SAP SD is also one of the module and which has many business scenarios like cosignment sales, MTO etc.

This Order to cash (OTC) you can call as a main business component under this component we execute many business processes/scenarios. The above stated 2 business scenarios is also a part of this process.

Here in this process we collect the order from the customer,we deliver that goods,we bill that goods,we post it to the finance,we collect the payment from customer.Finally after getting the payment the system shows that the customer has no dues against the transaction / order. These complete steps forms a business process and that process is called as Order-TO-Cash (OTC).

For Ex: If a customer needs a TOOTH PASTE then we give that tooth paste to the customer and collects the money.The process is as simple as that.Here basically we have delivered the goods to the customer and received the money from the customer and this will be mapped in SAP SD with different terminologies.

I hope you understood the above business process.

Please let me know your thoughts.

Thanks and Regards,

Satheesh durgi

[balaji_parsewar]

Hi,

We can not differentiate between SD & Order to cash.

OTC is one of the component of SD module. In mathematical language OTC is subset of SD.

Regards,

Balaji

[Former Member]

Hi Asha,

Order to Cash Management is different , SAP supports Order to Mangement process in SD module

What is Actual Order to Cash Management:

For semiconductor and component manufacturers, order-to-cash management is a core business function. These manufacturers need to create inquiries and quotations successfully, negotiate and manage global and local contracts, acquire and enter orders, configure and price products, check product availability, and track, manage, and bill orders.

SAP for High Tech covers all key activities involved in order-to-cash management, enabling you to:

Gain real-time and accurate visibility into the availability of both standard and custom devices, delivery dates, contract pricing, and product configurations

Negotiate and manage global and local contracts

Automate your quotation, contract, order processing, and billing activities

Define flexible pricing, contracts, and solution configurations to meet individual customer needs

Manage billing, revenue recognition, and payment processing activities

Prioritize customers and capacity with accurate, real-time delivery dates based on different availability-to-promise rules

if it is useful give me points.

[Former Member]

Hi Asha,

Order to Cash Management is different , SAP supports Order to Mangement process in SD module

What is Actual Order to Cash Management:

For semiconductor and component manufacturers, order-to-cash management is a core business function. These manufacturers need to create inquiries and quotations successfully, negotiate and manage global and local contracts, acquire and enter orders, configure and price products, check product availability, and track, manage, and bill orders.

SAP for High Tech covers all key activities involved in order-to-cash management, enabling you to:

Gain real-time and accurate visibility into the availability of both standard and custom devices, delivery dates, contract pricing, and product configurations

Negotiate and manage global and local contracts

Automate your quotation, contract, order processing, and billing activities

Define flexible pricing, contracts, and solution configurations to meet individual customer needs

Manage billing, revenue recognition, and payment processing activities

Prioritize customers and capacity with accurate, real-time delivery dates based on different availability-to-promise rules

[Former Member]

I think nobody can clearly distinguish between SD and OTC.

In some enterprises you can use the abbreviations synonymously.

E.g. in the projects I am working in you can refer to the Sales&Distribution team as SD team or as OTC team. Everybody will understand.

[Former Member]

Hi Asha,

in general Teerm, Order To Cash Cycle is After getting order and till getting the Payment for that order. there are different steps and processes involved in it.

Taking an Example.

Lets Take you are one customer and you want to buy one car.

You went to Car dealer and Orderred For One CAR.

Then The dealer will give the documents and Deliver you the Car.

And raise one Bill in your name.

After verification You will give payment which is Cash.

This will complete ORDER TO CASH cycle.

Its the Part of Sales process of SAles and Distributuon Module of SAP.

Hope this will help.

]

Reward Point if helpful.

Thanks,

Raja

[Former Member]

"Order to Cash" means the complete sales process. Sales process starts from

1. Pre-sales Activities ( during this phase we create two documents Inquiry and with reference to this Inquiry , (ii) Quotation is created. If customer agrees, then it results in a sales order with reference to this Quotation.

So next phase is creation of a Sales Order. But it is not necessary that always you have to create a Sales order with reference to a Quotation . You can create Sales Order without refering to a Quotation , similarly a quotqtion without refering to an Inquiry.So pre-sales activities also may not be there always. Sales process may start from creation of "Sales order" straight away..

2. Creation of Sales order

- During this phase availability check takes place, requirement is placed to materials planning,credit check may take place depending on setting, etc. Next step is,

3. Shipping process

This step consist of several sub-processes, they are,

creation of a Delivery document with reference to the Sales order.

(ii)Then Picking if the material is relevant for picking

(iii) Then we go for packing if the material relevant for it

(iv) Transportation planning if required

(v) Lastly we go for PGI (posting goods issue) which completes the Shipping process. Now it is due for Billing.

4. Next step is BILLING.

-We create a Billing document with reference to the Delivery document. Once the Billing document is saved data are transfered to Accounting (FI).

But Sales process is completed only when money is realised that means when Payment is made. Therefore next step is PAYMENT, but it is a area of FI dept.

5. Last step is PAYMENT.

Here lies the answer of your question, I hope.

SD process means sales process from SD point of view, that is from PRE-SALES or SALES ORDER phase to BILLING, beacuse PAYMENT is a area of FI look-out.

"ORDER TO CASH" means the complete sales process , that is from PRE-SALES or SALES ORDER phase to PAYMENT.

I think this will clarify .

Regards

Pradyumna

[former_member396676]

Hi,

SD is Business management term. While Order to cash (OTC) is Business process defined to help configure scenario in SAP.

I give other examples-

Sales & Distribution - Order to cash

Materials Management- Procure to Pay

FICO - Accounting to reporting

HR - Attract to Hire

Thanks,

Vrajesh

[Former Member]

Hi,

SD module consists sales functionalites and distribution functionalities(logistics side).Order to cash is the scenario which is berlongs to sales in sales&distribution module..

Rewards me....if its ok

[Former Member]

Hi,

SD is a module where it includes sales as well distribution. ie logistics functions.

Order cash is one of the sceanarios in Sales and Distribution. There is no comparision between SD and Order to Cash.

regards

sadhu kishore

[Former Member]

HI,

Hope u find this useful.Reward points if u find it useful.

Cash sales:

In cash sales, you can process an order for when the customer orders the goods, picks them up, and pays for them immediately. The delivery is processed at the same time as when the order is created and a cash invoice is printed immediately: billing is therefore related to the order, unlike rush and standard orders. Receivables are not created for the customer, as they are for rush and standard orders because the amount in the invoice is immediately posted to a cash account.In the standard system, sales document type BV (CS) is saved for cash sales with immediate delivery type BV.

When the sales employee creates a cash sale, the system automatically proposes the current date as the date for delivery and billing. Once the order has been posted, a delivery with type BV is created immediately in the background and the system prints a document that is used as an invoice for the customer.

The invoice papers are controlled with output type RD03, contained in the output determination procedure for order type CS

[Former Member]

Hi Subba Rao,

the question is not regarding Cash Sales, but what is order to cash.

regards

sadhu kishore