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SAP Order to Cash Flow- SAP SD

admin · Saturday, December 5th, 2009

SAP SD is simply Sales and Distribution

● It's all about selling goods & distributing them to relevant parties and gets the payments for relevant
parties.
● Helps to optimize all the tasks and activities carried out in sales, delivery and billing.
● Key elements are: pre-sales support, inquiry processing, quotation processing, sales order processing,
delivery processing, billing and sales information system.
● SAP SD application components fulfills many of the international requirements that supports the sales
and distribution activities with functions such as pricing and conditions, customer order processing,
delivery monitoring, billing, credit and risk management.
● The SAP sales and distribution is part of the logistics module that support your customers, starting
from quotations, sales order and all the way towards billing the customer.
● It is tightly integrated with the MM and PP functional modules. It allows companies to input their
customer sales price, check for open orders and forecast etc.

The most important basic functional features in the SD module are:

● Pricing
● Availability Check
● Credit Management
● Material Determination
● Output Determination
● Text Processing

SAP SD stands for Sales and Distribution and this is the module which is used to manage
customer-focused activities, from selling to delivery, including -

● RFQ
● Sales orders
● Pricing
● Picking (and other warehouse processes)
● Packing
● Shipping

Some of the main SAP SD transactions are:

● VA01 - Create Customer Order

● VL01N - Create a Delivery

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● VA03 - Display a Order

● VL02N - Change Customer Delivery (F20 is to post a good issue)
● VA05 - List Orders
● VF01 - Create a Invoice

The Order to Cash flow roughly follows the following sequence -

● A customer orders some items from your company by creating a sales order
● Your company decides to deliver the items ordered by the customer.
● This is recorded by creating a outbound delivery document
● 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 but the material document created will be stored in tables.
● You will then create shipment document to actually ship the items.
● You finally create a sales billing document.
● This will have a corresponding accounting document created that will be in different tables.
● When customer pays to your invoice, it will directly hit your AR account in FI.

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