Internship← SAP learning pathSAP · Module 4 of 10
Business processes: order to cash
How a company sells: inquiry, order, delivery, billing, payment.
📖 Key ideas
- Order to cash (O2C) is the selling process, mostly in SD with FI.
- Steps: inquiry and quotation, sales order, delivery, goods issue, billing, customer payment.
- Goods issue reduces stock when goods leave the warehouse.
- Billing creates the invoice and an accounts receivable entry.
- Credit checks can stop orders for customers who owe too much.
💡 Real-life example: Like a furniture shop: quote the price, take the order, deliver the sofa, give the bill, collect the money.
Sales orderCustomer's confirmed order
DeliveryDocument to ship goods
Goods issueStock leaves the warehouse
BillingInvoice to the customer