SAP Order to Cash Process Overview

On this slide you can see a graphical overview of SAP order to cash business
process where each box indicates a particular document or action in SAP ERP
system. There are four main stages of SAP order to cash process: pre-sales
activities, order processing, shipping, and billing. Pre-sales activities take place
before an actual sale deal has taken place.

SAP Order to Cash Process

Next, order processing stage includes activities for capturing and formalizing
requests of customers as well as pricing and delivery conditions. After this stage, the
customer has made a commitment to order goods or services from the company and
the company can either provide goods from the available stock, order new goods
from suppliers or manufacture these goods according to the request of the customer.

As soon as goods are ready to be sent to a customer the shipping stage of SAP
order to cash process begins. It involves creation of an outbound delivery document,
preparation and packing of goods, planning of transport, and finally dispatch of
goods from the warehouse.

Besides sending goods to the customer, it is also necessary to create an invoice, so

that the customer knows how much they need to pay to the company. Customer
invoices in SAP are created using billing documents. So, the billing stage of SAP
order to cash process deals with creating a billing document.

Now, let’s have a more detailed look at each of the steps in SAP order to cash
process.