Describing the Order-to-Cash Process

Objectives

After completing this lesson, you will be able to:

  • Describe the order-to-cash process and its set-up options

Sales Process Overview

Sally from Sales, Mark from Shipping, and Felix from the Billing department execute various process steps in SAP S/4HANA Sales that depend on each other. The complete order-to-cash process is illustrated once more in the figure below.

In the following video, you learn how the process steps in the various phases depend on each other and what activities trigger what next process steps in SAP S/4HANA Sales.

Set-Up Options for a Sales Order in S/4HANA Sales

In SAP S/4HANA Sales, you have different options to set up a sales process. Basically, the options depend on the sales order. Explore the figure below to learn what options Liv and Jim from the system set-up team have to implement a sales process cycle in the case of a standard sales order. Essentially, there are two different processes to implement the sales process cycle:

  • The Order-Related Process
  • The Delivery-Related Process
  1. Material In Stock

    A physical and usually inventory-managed product, such as a bike, typically goes through the shipping process. This material will be billed after the shipping process is complete and the material has been posted goods issue.

  2. Service Product

    A service product, such as a consulting service or a repair service, does not go through the shipping process. The service employees perform the service directly and therefore the billing process for the service product is triggered directly from the sales order.

  3. Mixed-Order Material + Service

    Of course, you can also use both process options at the same time. In a sales order, you can have a mixed process in which you enter both, service products and inventory-managed materials. Each product is then scheduled in time for subsequent processing.

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