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.
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