5/10/2018 Order to Cash

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Order to Cash
Hi Experts,

Could anyone please explain how the Order to Cash process involved in SD module.If any one having the
links or materials please send it to me @ srirama_3@hotmail.com

Thanks,

Satheesh

https://archive.sap.com/discussions/thread/589695 1/8
5/10/2018 Order to Cash

(https://people.sap.com/satheesh.reddy2)

satheesh reddy (https://people.sap.com/satheesh.reddy2)

October 10, 2007 at 07:21 AM
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7 replies

(https://people.sap.com/srikanth.athipedu)

Srikanth Athipedu (https://people.sap.com/srikanth.athipedu)replied October 09, 2007 at 18:31 PM

Hi Satheesh,

Order to Cash process involves the following :

Sales order Entry

Order processing

Outbound delivery

Invoicing

Customer management

Many companies have implemented leading SAP business applications to help run their
daily order-to-cash activities. The addition of SAP solutions empowers companies to
automate many of the business processes that were done by hand less than a decade
ago. However,there is still plenty of opportunity to improve accuracy and efficiency in the
order-to-cash cycle through automation of the document management process.

Recently, the activity of order-to-cash has been gaining the interest of companies
desperately seeking measures to speed up their rev-enue cycle, improve customer
satisfaction, and increase profitability. Beyond significant cost savings, companies
converting to an auto-mated order-to-cash system can realize efficiencies throughout the
order management process.

Regards

https://archive.sap.com/discussions/thread/589695 2/8
5/10/2018 Order to Cash

Srikanth.A

(https://people.sap.com/pratheb.nadarajah)

Pratheb Nadarajah (https://people.sap.com/pratheb.nadarajah)replied October 09, 2007 at 18:43 PM

Hi Sateesh,

The order to cash cycle in SD is shown below

Inquiry -> Quotation -> Order -> Delivery -> Post Goods Issue -> Invoice -> Accounting

The document type and transaction codes are

<b>Process:</b> Inquiry

<b>T.Code:</b> VA11, VA12, VA13

<b>Doc. Type:</b> IN

<b>Process:</b> Quotation

<b>T.Code:</b> VA21, VA22, VA23

<b>Doc. Type:</b> QT

<b>Process:</b> Order

<b>T.Code:</b> VA01, VA02, VA03

<b>Doc. Type:</b> OR

<b>Process:</b> Delivery

<b>T.Code:</b> VL01N, VL02N, VL03N

<b>Doc. Type:</b> LF

<b>Process:</b> Billing

<b>T.Code:</b> VF01, VF02, VF03

<b>Doc. Type:</b> F2

Regards

Nadarajah Pratheb

https://archive.sap.com/discussions/thread/589695 3/8
5/10/2018 Order to Cash

(https://people.sap.com/priyanka.dixit2)
Priyanka Dixit (https://people.sap.com/priyanka.dixit2)replied

October 09, 2007 at 19:05 PM

Hi Satish

Order to cash cycle in SD starts with Inquiry -> Quotation ->

Order -> Delivery ->Picking-->Post Goods Issue -> Invoice ->
Accounting Document generation

For Inquiry

Doc. Type: IN

T.Code: VA11(create), VA12(change), VA13(display)

Process: Quotation

Doc. Type: QT

T.Code: VA21(create), VA22(change), VA23(display)

Process: Order

T.Code: VA01(create), VA02(change), VA03(display)

Doc. Type: OR

For Delivery

Doc. Type: LF

T.Code: VL01N(create), VL02N(change), VL03(display)

For Billing

Doc. Type: F2

T.Code: VF01(create), VF02(change), VF03(display)

For Accounting Document

T.Code: FB03(display)

Regards,

Priyanka

(https://people.sap.com/manojkumar.sharma)

https://archive.sap.com/discussions/thread/589695 4/8
5/10/2018 Order to Cash

manoj kumar sharma (https://people.sap.com/manojkumar.sharma)replied October 10, 2007 at 00:37 AM

Hi,

It is basically an entire sales cycle.

A customer orders some items from your company by creating a sales order(Tcodes:
VA01, VA02, VA03, Tables:VBAK, VBAP etc).

Your company decides to deliver the items ordered by the customer. This is recorded by
creating a outbound delivery document (TCodes:VL01N, VL02N, VL03N, Tables: LIKP,
LIPS etc).

Once the items are available for sending to the customer, you post goods issue which
reduces your inventory and puts the delivery in transit. This will create a material
document. You will post goods issue using VL02N but the material document created will
be stored in tables MKPF, MSEG.

You will then create shipment document to actually ship the items.(Tcodes: VT01N,
VT02N, VT03N, Tables: VTTK, VTTP etc).

You finally create a sales billing document. (TCodes: VF01, VF02, VF03, Tables: VBRK,
VBRP etc). This will have a corresponding accounting document created that will be in
BKPF, BSEG tables.

When customer pays to your invoice, it will directly hit your AR account in FI.

You will have to remember that these are not a required sequence. Some times, you may
configure your system to create a SD invoice as soon as you create a sales order or you
may not create a shipping document at all. This is where your functional consultant will
come into picture to study your order-to-cash process and design/configure the system to
do so.

Reward if helpful

Manoj

(https://people.sap.com/manoj.mahajan2)

MANOJ MAHAJAN (https://people.sap.com/manoj.mahajan2)replied October 10, 2007 at 06:46 AM

Satheesh,

Order to cash concept is nothing but effective order management process...

https://archive.sap.com/discussions/thread/589695 5/8
5/10/2018 Order to Cash

Sometimes Sales process also refereed as OTC..

Reward if u finds this as helpful..

Regds

MM

(https://people.sap.com/aditya.divakar)
Aditya Divakar (https://people.sap.com/aditya.divakar)replied

October 10, 2007 at 07:09 AM

<b>A standard order to cash involves the following cycle:</b>

Process Cycle: Inquiry>Quotation>Sales Order->Delivery-

>Billing

T Code Used : VA11 ---> VA21 -> VA01 -

> VL01n--> VF01

Doc Type : IN -

> QT -

> OR -

> LF -

> F2

Item Cat. : AFN -

> AGN -

>TAN -

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5/10/2018 Order to Cash

> CP( mvmt type -601)

You can configure your sales order doc type to carry out
requisite delivery and billing.

Thanks

Award points if helpful

(https://people.sap.com/venkatamuralimohan.darsi)

venkata murali mohan Darsi (https://people.sap.com/venkatamuralimohan.darsi)replied

October 10, 2007 at 07:21 AM

Hi Satheesh,

Order to Cash is the general terminology used in SD Module.

When we come to different processes , generally every thing will

start with an order and ends with collecting cash from the
customer.

It not only involves the simple business flow like order - delivery
- pgi - billing, but also involves the participation several aspects.

The flow differs from one process cycle to another.

But the Simple process is termed as OTC commonly.

we gave to get acquainted with all the processes and the flow of
materials through all the stages.

Award if it adds information.

Thanks

Mohan

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