Order-to-cash flow in SD

[Former Member]

Can you let me know on the Order-to-cash cycle in SD module? The process & steps to set up in SAP.

THx,

Pri

[Former Member · Accepted solution]

Topic: Quotation & Order - CRM Master and Transaction Data Replication (C03)

Link: http://help.sap.com/bp_crmv150/CRM_DE/html/C25_EN_DE.htm

Hope this helps you.

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Regards,

Rajesh Banka

[Former Member]

Yes Automation is possible.

Once you create an order in CRM, through delta upload, it is replicated in R/3. Similarly I suppose in SRM also there is a possibility to link & automate for procurement.

If you want complete automation from Dales order to invoicing, then you have to get abap development done.

Reward points if helpful.

Regards,

Rajesh Banka

[Former Member]

Thx rajesh,

Can you let me know the link for the documents on these topics.

will be much helpful

[Former Member]

Order to cash is a normal sales cycle. The process is as follows:

Inquiry

Quotation

Sales order

Delivery (create Delivery / Pick / Pack / PGI)

Invoicing

Receipt of payment from customer.

You can also fefer to the the document W40 - Order to Cash in the link as under:

http://help.sap.com/bp_blv1500/BL_US/index.htm

Reward points if helpful.

Regards,

Rajesh Banka

[Former Member]

Hello

<b>Order to Cash cycle</b> is a comprehensive process which encompass broadly Order management, invoicing, collections/credit management, cash application and sometimes relating to posting and reporting.

To simplify Order to Cash cycle, we can break it into 2 stages:

1. order-to-invoice (also called revenue accounting in some industries) and

2. Invoice-to-cash. (The term “order-to-payment” is generally used to describe A/P processes.)

The Order-to-Cash Management describes the entire process chain for a standard sales order process with a customer. The business process encompasses all steps, from creating an order to recording payment by the customer.

When an order is entered, an availability check is performed for the material and the shipping point is determined automatically. Depending on the customer and material, some special events are set up for the order entry. For specific customers, upon entry of a material, the system may also propose a material for substitution. Also, if a certain order quantity is reached, the system may also generate a new item with free goods. This document also demonstrates material exclusion, which is when a material cannot be sold to a customer for some reason.

A delivery is created, combined into shipments (for transportation planning), then picked, and a goods issue is posted. In the subsequent billing process, an invoice is created and, if necessary, released to financial accounting. Incoming payments are documented in payment processing and then posted in financials.

<b>Sub modules in Order to Cash can be:</b>

1. CRM

2. Order processing

3. Foreign Trade management[export]

4. Billing and collection Management

5. Customer Agreement Monitoring.

Refer to the link <a href="http://www50.sap.com/businessmaps/FBB57FF1DEE9419FB5D4F2F82468EEAD.htm">Order-to-cash</a> for complete reference.

Regards,

Gauravjit.

Reward points if the explaination is helpful.

[Former Member]

Thx Gaurajit !

My client looks for automation of OM process.

With SAP R/3 upgradation, can we make use Netweaver with CRM & SCM to do this automation, instead of buying a 3rd party tool to automate this process?

Kindly share your views.

thx,

[Former Member]

Hello,

SAP NetWeaver is an open integration and application platform that ideally manages heterogeneity and powers collaborative solutions, making it possible to tie disparate systems together in single, point-to-point integration projects and largely reduce the complexity and cost of this process. mySAP Business Suite applications are based on the <i><b>SAP NetWeaver platform, an integration and application platform</b></i>. It can enables companies to intelligently commit delivery dates in real time and fulfill orders from all channels on time through optimized manufacturing, warehousing, and transportation processes. This includes real-time, global available-to-promise checks to locate finished products and components. The checks can take into account product characteristics and market constraints; order management, including the creation of quotations, sales orders, and bills; and transportation management, including transportation planning and vehicle scheduling, execution, and tracking of individual shipments. SAP's Extended Order Management supports such processes through a single, common data model to ensure the consistency of the data and the transferred objects. <i>The resulting integration goes beyond mere <b>“connecting</i>,”.</b> It integrates on three levels: on the presentation level, by bringing all the pieces of information needed about a customer together in one view, whether that information comes from CRM, SCM or financials; on the business process level, by enabling such activities as reserving inventory for particular orders; and on the access level, by allowing information to be shared with customers, suppliers, partners, or others.

Also, NetWeaver is giving SAP an opportunity to convince existing R/3 customers to upgrade to the mySAP product suite. “NetWeaver and the underlying Enterprise Services Architecture (ESA) are a major part of SAP’s message as to why existing R/3 customers should upgrade to the mySAP product line. NetWeaver also improves SAP’s ability to integrate with third party applications within the client’s own portfolio or to enable e-commerce with suppliers and partners.”

To cut the long story short, though Netweaver can be used to integrate SAP R/3 with CRM and SCM, one needs to look at the other major factors also like the project cost, duration of the project for integration, specialised consulting, development cost etc.

Regards,

Gauravjit.

Reward Points if helpful

[Former Member]

any help where to look for Supply Chain Management documents ?

many thx,

[Former Member]

Hi,

order to cash is from sales order to delivery to billing. At each of these stages various processes are set up to facilitate better handling of the sap sd business process.

To configure order part of it, you need to have sales documents ( Configure at VOV8). Need a customer master at XD01. Material master at MM01.

for delivery , use OVLK to configure delivery documents

billing at VOFA. configure your item categories at VOV4.

Setup your pricing at VOK0.

http://wireless.knowledgestorm.com/kswireless/search/viewabstract/84533/index.j

sp

Yet the info would be incomplete as we can set up a number of other processes.

However you can have a basic run with these settings.

Thanks & Regards

Sadhu Kishore

[Former Member]

hi, correct if iam wrong, r u referring to cash sale in SD