From Contract to

Invoice
Definition of Contract, Sales Order, Outbound
Delivery and Invoice

1 we commit. we deliver.
Standard sales process

2 we commit. we deliver.
Quotation
Def.: Agreement to deliver specific products or selection of a certain amount of products in a specified timeframe at a
pre-defined price. Has validity period.

Example: John asks if bakery can bake 10 loaves for his party. The bakery can complete his request given the proper
conditions (price, timeframe). Quotation

Should be created before Sales Order.

Tile: Manage Sales Quotations

3 we commit. we deliver.
Quotations

4 we commit. we deliver.
Contract
Def.: Agreement that contains special conditions negotiated between supplier and customer.

Example: Bread costs 5 euros. John agrees with the local bakery that if he buys 10 loaves at the same time, the price will
be only 4.5 euros each. Contract

Should be created before Sales Order.

Tile: Manage Sales Contracts

5 we commit. we deliver.
Contract

6 we commit. we deliver.
Sales Order
Def.: Agreement between a sales organization and customer about delivering products or providing service for defined
prices, quantities and times.

Example: John orders 10 loaves from bakery Sales Order

Tiles: Create Sales Orders (create new order)

Change Sales Orders (change existing order)
Display Sales Orders (only display)

7 we commit. we deliver.
Sales Order

8 we commit. we deliver.
Outbound Delivery
Def.: Document representing the goods to be delivered together to a goods recipient.

Example: After preparation of bread, bakery handles the note to the cashier so John can have 10 loaves
Outbound Delivery

Tiles: Create Outbound Delivery (create new delivery)

Change Outbound Delivery (change existing delivery)
Display Outbound Delivery (only display)

9 we commit. we deliver.
Delivery

10 we commit. we deliver.
 Invoice
Def.: Document that a vendor sends to a customer to request payment for goods or services that have been delivered or
performed.

Example: John gets invoice and pays 45 euros for 10 loaves Invoice

Tiles: Create Billing Documents (create new documents)

Change Billing Documents (change existing documents)
Display Billing Documents (only display)

11 we commit. we deliver.
Invoice

12 we commit. we deliver.
Contract vs Sales Order in SAP
Similarities:

• Agreement between company and customer

• Specified parameters (material, quantity, price)

• Can be created independently

13 we commit. we deliver.
Contract vs Sales order in SAP
Differences:

• Contract is a comprehensive legal agreement for a specific period (ex.: 01.05.2024 – 31.12.2024), long-term business
relationship between company and customer.

• Sales order is the order itself, where customer asks the company to sell their product. Single business transaction,
focused on the specific details.

• Can not create invoice, delivery, transportation with contract, only with sales order

• Contract is optional, order is mandatory

14 we commit. we deliver.