SALES ORDER MANAGEMENT ORDER TO CASH PROCESS

Pre-sales activities -> Sales order processing -> Inventory sourcing -> Shipping-> Billing ->Payment receipt
and posting
Info
Customer Picking: Inventory Customer
record You create transfer order for an outbound delivery Bank Revenue Customer Receiv/
Change Inventory/Stock Sub-Ledger
Creating a transfer order includes copying data A transfer order is generated for a warehouse number. The Reconciliation
from the delivery document to the transfer order system copies the relevant data from the delivery.
for processing within the warehouse. The 4000 4000 10000 10000 10000 10000 10000 10000
transfer order is essential for controlling the Picking in shipping processing:
movement of goods within the warehouse. You can control an item in an outbound delivery so that
Material Condition Output picking is required. 1 1 3 2 2 3 2 3
The transfer order is based on a simple principle:
where you are taking goods from and to, within Picking is carried out by creating transfer requests with Auto
your warehouse. There is a source location and a which you trigger and survey warehouse movements.
Material type Condition Output destination location for every transfer order. Packing:
Industry sector types types When packing you can combine delivery items and pack
them in different shipping units.
Documents generated
Pre sales activities: establishing and maintaining Sales order processing: Warehouse CO-
customer relationships MM FI CO MM FI FI
Contains all info.(Inquiries and quotations PA
Creating and tracking customer contacts docs) to process the customer’s request Doc Doc Doc Doc Doc Doc
Mailing campaigns Confirm Transfer Order Doc
during sales order processing. Sales process
Answering customer ques. received by email, fax etc data from master records. Pick Pick Quantity
Inquiries 1 quotation can = multiple sales orders. 1 2 3
Quantity TO Transfer Request
Quotations Multiple quotation can = 1 sales orders.

Sales Delivery/ Goods Invoice Receive

Inquiry Quote
Order Shipping Issue / Billing Payment
A Sales document is created in a sales area.
It references from Inquiry + Quote 10
Sales documents structure: is grouped into 3 levels:
Shipping processing in SD begins when you create the Billing: Payment:
header customer related data) GI - goods issue posting: effects
delivery document (Header and item)(copying information Billing supports: process part of the application module FI
items data about the material / quantities ordered, $, conditions
from the sales order, such as the materials and quant). The MM - Material doc: describe the g. movt. from Creating invoices for products and services
schedule lines delivery q. + dates. schedule line =1 item, expect for partial
deliv. doc. controls, supports and monitors numerous sub the MM (stock) point of view. Creating credit and debit memos Payment supports:
deliveries => multiple schedule lines.
processes for shipping processing such as: FI - Accounting doc: describes the goods movt. Cancelling previously posted billing documents Posting payments against invoices
Backward scheduling: (Optional) picking and confirming (transfer req. orders) from the FI point of view. Automatically transferring billing document data to Reviewing differences
The customer’s requested delivery date is used to calculate the pick/pack time (Optional) Packing accounting
CO - Cost accounting document: serve various
and the transportation lead time. The delivery must be created on the earliest
(Optional) Planning and monitoring of transport cost analysis purposes Incoming payment posting: effects
of the two dates (selection date for the outbound delivery). When you create a billing document, data is copied from the
(shipment docs) _ Account affected: Cash/Bank account is debited
Incompletion log: sales order and the delivery docs to the billing document. Customer Receivables account is
Posting the goods issue GI (goods issue documents). .Inventory/stock is credited Functions:
Each SD document contains data required for the documents and for further credited
.Inventory change (cost of goods) is debited It is SD document that helps you to generate invoices.
processing. Customer Subledger account is credited
The system determines which fields are displayed in the incompletion log when Creating outbound delivery: . NON Banked, Revenue, Customer. The billing document serves as a data source for FI to help
the user does not fill them during sales order processing. You can create an outbound delivery in a shipping point for Q in Inventory Mgt and the Delivery req. in you monitor and process customer payments.
The incompletion log will be displayed: orders that are due for delivery. The relevant data is copied material planning are updated. When you create a billing doc., the G/L accounts will We know that payment has been
Automatically when you save your entries. from the order to the outbound delivery. Further documents for FI are created. normally be updated automatically. During this process, the received from the customer for a
Or by choosing edit-incompletion log 1 Sales Order can = 1 or several outbound deliveries (document flow updated) system carries out: particular invoice, because the overall
In customizing you can decide which fields should be part of the incompl. log Several Sales Orders can = 1 outbound delivery. Billing due list is generated. o Customer Receivables account is debited (bis) processing status of the accounting
The incompl. log functions are available in the sales order and in the delivery. The orders must all have the same characteristics that are o Revenue account is credited (bis) documents changes to cleared.
The status in all relevant sales doc is updated
essential for the shipping process:
Transfer of requirements: Customer requirement deleted Creating a billing document:
Shipping point
Communication between SD and Procurement is carried out via requirements. Due date You can create an invoice for a delivery or sales order.
The material for the order can come from in-house production or external Ship-to address You can group invoices using selection criteria, such as
procurement. customer, billing date and destination country.
If there is insufficient material available, purchase orders can be made via The SAP system can combine deliveries into a billing document,
material planning. provided these deliveries share some essential characteristics:
Account Posting Payer Billing date Destination country
Availability check in the sales order: 1. Goods Issue : Credit Inventory, Debit Cost of goods sold (Inv. Change)
Can be required via customizing 2. Billing a customer : Credit Revenue, Debit customer (Reconc+Subdledger) Billing document structure: two levels:
Can be required via the material master record 3. incoming Payment: Credit Customer(Reconc+Subdledger), Debit bank account Header (Payer, Billing date)
Item (Details about the material,Billing quant, items Net value)
The system can check other plants for a material
Backward scheduling is used to determine whether a material will be available Billing document posting: effects

Document flow in the SAP system: docs in sales process Sales and distribution integration: Customer credit account is updated
are linked to each other using the doc. flow. Integrates with Materials Management for availability checking Status in all related sales, delivery and billing documents, is updated
This let you access the history and current status of Integrates with Production Planning for make to order product Sales statistics in the SIS are updated
your sales process at any time Integrate with Project Systems for delivery and billing processing _ Account affected:
1.Standard order Integrate with Warehouse Management module, where the product is picked and print shipping document Customer Receivables account is debited Open item posted on
2.Delivery Integrate with Materials Management, Financial Accounting and Controlling when posting a goods issue Customer Subledger account is debited cust.’s account
3.WMS transfer order Integrates with Profitability Analysis for sales order Revenue account is credited
4.GI- goods issue Integrates with Sales Information System Further documents for accounting can be automatically generated by
5.Invoice the system, for example:
6.Accounting document For the components controlling (CO) accounting
Profitability analysis (CO-PA) posted
Market segment analysis (CO-PA)
Consolidation (FI-LC)