In this lesson we will introduce the order to cash process which from a financial point of view requires the integration of the sales and distribution logistics component with accounts receivables in financial accounting.
In the simplified example of posting an outgoing invoice, all of the specific sale conditions, quantities and values are considered given. In reality the sales process starts much earlier and especially for some of the more complex and large customer orders requires the collaboration of many people from various departments. In a simplified scenario, when your customer orders a forklift, the sales department must both check with and inform the warehouse. The warehouse needs to know when the customer needs which model delivered to what location in order to ensure stock availability and that the shipment can be made on time. In parallel the controlling and accounting departments want to know of future sales to prepare reports based on the confirmed sales pipeline. When the sales order is confirmed, the warehouse (or potentially even the production facility) needs to take action and customer billing has to take place as well in order to issue an invoice. Incoming payments must also be posted in order to cleat outstanding receivable items from the general ledger. These steps are handled in SAP S/4HANA with multiple components supporting the order to cash business process.