SAP Order to Cash Flow- SAP SD

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
• 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.

Related Articles

• No Articles

This entry was posted on Saturday, December 5th, 2009 at 12:03 am and is filed under General Articles. The entry is tagged under You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.