The process starts with the creation of a customer and standard sales order. Depending on the customer and the material, various special events take place during order entry, such as customer and material pricing.
If enough material exists in the required storage location, the process proceeds normally. If not, a stock movement takes place. Picking slips are generated to stage the product for shipment to the customer. When picked, the physically shipped quantity must be registered in the system, to ensure that there are no differences between the sales order and the delivery document.
After the completion of picking, the shipping specialist relieves the inventory. This inventory relief is the actual recording of the physical quantity that is being shipped to the customer. The cost of goods sold is recorded in financial accounting.
When the inventory is relieved, you can invoice the delivery and record the revenue and the cost of goods sold in management accounting. For details on the bundling functionality for IFRS 15, see SAP Note 2524569.
A preliminary billing document can be created from the billing due list items as an optional step. You can show it to customers, to align on exact details and change if necessary. The final billing documents, that customers are expected to settle, are created.