3/26/2015

SAPOrderToCashCycle(SAPOTC):FISDIntegrationandConfiguration

SAPOrderToCashCycle(SAPOTC):FISD
IntegrationandConfiguration
Byktnptl

WhatisSAPOrdertoCash(SAPOTC)?
OrdertoCashisanintegrationpointbetweenFinance(FI)andSales(SD).ItisalsoknownasOTCorO2Cinshortform.Itisabusiness
processthatinvolvessalesorderfromcustomerstodeliveryandinvoice.ItcomprisesSO,Delivery,PostGoodsIssue(PGI)andbillingto
customers.OTCprocessisaveryimportantprocessinEnterpriseResourcePlanningsoftware(ERPSoftware).BothmajorERPsoftware
SAPandOracleincludethisprocess.
It'sconfigurationtouchesbothFinanceandSales&Distributionmodules.ThisisanendtoendprocessfromcustomerInquirytogoods
delivery,billingandpaymentofmoney.Theprocessstartswhenacustomerinquiresforaninventoryitem(finishedgoodsforacompany).
Thecustomergetsquotefortheitemandplaceanorderforthequantityneeded.Auserfromcompanyplacetheorderandpassitfor
processing.Inventorygetspickedupfromwarehouseandshippedtocustomer.Billingprocessalsostartswithdeliveryanditcanbesent
withtheitemorlater.ThisisanoverallOTCscenarioingeneral.
Thisprocessgivesintegrationbetweencustomermasterrecord,salesorganization,salesoffices,distributionchannels,divisionsand
plants.
Hereinthisarticle,wearegoingtodiscussthestepsindetails.

SAPOTCProcessFlow
SAPOTCisaprocessinvolvedcustomersalesordercreationandsatisfyingcustomerrequirementsviadelivery.
Prerequisitesarecustomermasterrecordissetup,salesarea(salesorganization,divisionsanddistributionchannels)wassetupalready.
Generallystepsareasfollows:
CustomerInquiry
Quotationforcustomerinquiry
SalesOrdercreation
PostGoodsissue(PGI)
Delivery
BillingBillsenttocustomer
ReceiptofmoneyCustomerPayment
TheFirsttwostepsthatareinquiryandquotationmayormaynothappen.Anewcustomermayinquireandaskforquotationbutanold
customermaynotinquire.Moreover,ifyouhavecontractedagreementtosellproductsatacertainpricethancustomerwilldirectlyorder
withoutquotation.
Now,let'sseewhatistheimpactontheaccountingentriesforthiscyclesteps.Eachstephasit'sowndifferentconfigurationthesesteps
usedinbusinessworkflow.AsImentionedearlier,thisprocessinvolvesmanydifferentorganizationallevels.Mostimportantorganizational
levelsinthisprocessisCompanycode,salesorganizations,distributionchannels,divisionsandplants.

Sales&DistributionCycle

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SAPOrderToCashCycle(SAPOTC):FISDIntegrationandConfiguration

OTCProcessSteps

TransactionCode

AccountingEntries

Inquiry

VA11

No

Quotation

VA21

No

SalesOrder

VA01

No

PostGoodsIssue(PGI)

VL01n

Yes

Delivery

VL01n

Yes

Billing

VF01

Yes

ReceiptofMoney

FB50

Yes

BusinessProcessAssociatedWithSAP

OrdertoCashConfiguration

WhatisthemostimportantintegrationinSAP?

ThisisanimportedintegrationinSAPlandscape.Herearethe
configurationstepsindetails.Itsconfigurationhappenedin
transactioncodeOBYC.

OrdertoCash(OTC)(FISDIntegration)

Inquiry:Acustomerinquireabouttheproductpriceandservice.
ThisisaverystartingpointofOTCprocess.Thisprocessdoesnot
haveanyeffectongeneralledgeraccountsanddonothaveany
accountingentries.Onceacustomercreatesinquiry,aninquiry
numberisgenerated.InquiryiscreatedbytransactioncodeVA11.

FIHRIntegration

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ProcuretoPay(PTP)(FIMMIntegration)

FICOIntegration
Vote
Seeresultswithoutvoting

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SAPOrderToCashCycle(SAPOTC):FISDIntegrationandConfiguration

Quotation:Quotationisapricequotegiventothecustomer.Aquotationfollowsinquirysteps.Aquotationcanbecreatedviainquiryor
withoutinquiryreferencenumber.AquotationiscreatedbytransactioncodeVA21.
Sales:AccordingtosomeSAPexperts,SalesorderisactuallythefirststepofOTCprocess.Afterinquiryandquotation,onceit'sgets
created.Salesordercanbecreatedwithreferenceofquotationorwithoutreference.Itdoesnotmakeanyaccountingbookentryandit
doesnotmakeanychangeinGeneralLedgeraccounts.Itisjustacommitmenttodelivergoodstothecustomer.SOcanbecreatedwith
transactioncodeVA01.
PostGodsIssue:Postgoodsissueisthestepswheregoodsarebeingpickedbywarehouse,packedandshippedtothecustomer's
givenshippingaddressasperthesalesorder.Wehaveaccountingentriesasinventoryisbeingcreditedagainstthecostofgoodssales
(COGS)debited.Generalledgeraccountsassociatedwiththecostofgoodssalesandinventoryisaffectedrespectively.
Delivery:Deliveryfollowspostgoodsissue(PGI).Deliveryistheactualfulfillmentofgoodstothecustomershippingaddress.Atdelivery
stage,wehaveaccountingentriesinthebooks.Atthisstage,wedebitrevenueaccountandcreditcustomeraccount.Transactioncode
fordeliveryisVL01n.
Billing:Atbillingstage,wesendthebilltocustomerforthegoodsdelivered.Wehaveaccountingentriesatthisstagewherewedebit
customerandcreditcashaccount.TransactioncodeforbillinginSAPisVF01.

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ManagementandOTCProcess
OrdermanagementisanimportantpartofSAPFinanceandSalesintegration.ThisprocessalsoknownasSAPOMinshort.Itisan
administrativeprocess.Itautomatesorderprocessingandseamlessintegrationofdataamongdifferentmodules.OMincludescustomer
masterdatabase,customerreturnsandrefunds,billinginformation,shippinginformation,paymentterms,paymentconditionsandother
informationrelatedtoOTCprocess.
OMalongwiththeOTCprocessprovidesimprovedsalescycleandeasyhandlingofgoodsandefficientorderprocessing.Itisan
importantprocessinretail,healthcare,telecommunicationsandcustomerorientedindustries.
LastupdatedonAugust23,2014

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