Order to Cash (OTC)

Hi
I am confused the difference between normal sales to Billing process and Order to cash (OTC) process. Google also resulted different type of explanations, so decided to post this basic questions, I hope moderators don't make any objection ..
1. What is the difference between OTC and Normal SD-Delivery-PGI- Billing process.
2. What is the process steps involved in OTC.
3. What are the document types & item categories involved in OTC.
Appreciated if you could answer with some screen shot.
thank you
MM

Hi MM,
As you know order to billing is the standard sales order processing like
order - delivery - billing & release to FI.
similar, in order to cash.
whenever customer place the order. based on shipping conditions system will generate the delivery document against this sales order. then pick-packing- goods issue will be done.
to create billing, will take order ref, instead delivery ref. the complete process known as "CASH SALES" process. after creating billing will release to FI. Then the value store in Cash account, instead revenues account like in standard sales order process.
For this we need determine cash account in config.
if you observe the Cash sale billing doc ( BV) type, you will find account key- EVV, which determines cash account to post the cash sales billing values in cash account.
You will get other side of answers too.
Hope it helps you to understand the difference between two processes.

Similar Messages

ORDER-TO-CASH OTC Extraction

Hello All,
Would appreciate if you can explain me OTC in relation to BW. What are the extractors, what specific reports are generated for order-to-cash.
I promise to award points to helpful answer.
Thanks for your time.
Pramod.

Hi
Order to cash is the process where the customer pays upfront while ordering the goods. The Order type will be different in Sales Flow in R/3 SD module when configuring for Order to Cash
SAP standard is the sales doc type CS ( cash sales..something )
In BW, we can give a filter in your transformations, update or transfer rules to arrive at keyfigures only relevant to order cash referring the Cash order Sales Document type configured in R/3
All the SAP standard Extractors for Sales and Distribution are relevant for O2C analysis in BW
Regards
N Ganesh

Order to cash and Transcation codes

Hello all,
I would like to know whether order to cash comes under warehouse management or does it come under material management? . Also, i want to know what is the transaction code for creating the stock transport order and also creating delivery with stock transport order.
Thanks,
Maxx

Dear Maxx,
https://www.sdn.sap.com/irj/sdn/wiki?path=/display/bpx/order%2bto%2bcash
Order to Cash (OTC)
Definition
In an Order-to-Cash (OTC) process, everything that leads from the order, packaging, delivery to having the actual money in the bank is included.
Steps
Some basic steps for OTC can include:
Create or Maintain Customer
Create or Maintain Material Master
Create or Maintain Condition Records for Pricing
Enter and Authorize Sales Order
Convert Quote to Order
Validate Product Configuration
Verify Billing, Shipping, Payment details
Apply Discounts
Review Credit of Customer
Verify Stock
Plan Delivery Schedule
Pack and Ship Product
Billing and Cash Receipt
Contract to Renewal
Process Flow
Sales Quotation
Standard Order
Shipping
Delivery
Picking
Posting Goods Issue
Warehouse Picking Execution
Packing
Posting Goods Issue
Billing
Payment of Customer
https://www.sdn.sap.com/irj/sdn/wiki?path=/display/espackages/order%2bto%2bcash
https://www.sdn.sap.com/irj/sdn/wiki?path=/display/espackages/order%2bto%2bcash%2bbasics%2benterprise%2bservices
Hope this is helpful.
Regards,
Naveen.

Order to Cash scenario

Dear Friends,
Am a technical resource and have some good exposure to SD order to cash flow and transactions!
But cannot put them in a sequence since am not in touch with SD or any logistics for quite time now!
Can some one please get me info. about the Order to cash process!
Am looking for a the sequence of concepts, transactions & tables(if possible!
Thanks in advance for the great help!
With best regards,
Jilan Bhasha

Hi Jilan
Please refer to the below details for OTC Concept, SD transactions & tables:
Concepts:
Link: <http://help.sap.com/bp_bblibrary/500/html/W40_EN_DE.htm>
http://www.erpgenie.com/sap-event-management/sap-em-order-to-cash-otc-process
http://help.sap.com/saphelp_47x200/helpdata/en/dd/55ffd2545a11d1a7020000e829fd11/frameset.htm
http://help.sap.com/saphelp_46c/helpdata/en/dd/5602ae545a11d1a7020000e829fd11/frameset.htm
SD Transactions:
J54 Third Party Processing With Shipping Notification
Transaction code transaction text
VA01 Create Sales Order
ME21N Purchase Order Processing
MIGO Goods Receipt Based on Shipping Notification
VF01 Billing Processing
MIRO Invoice Verification
J55 Third Party Processing Without Shipping Notification
Transaction code transaction text
VA01 Create Sales Order
ME21N Purchase Order Processing
MIRO Invoice Verification
VF01 Billing Processing
J56 Bought-In Item
Transaction code transaction text
VA01 Sales Order
ME21N Purchase Order
MIGO_GR Goods Receipt
VL01N Delivery Processing
VF01 Billing Processing
MIRO Invoice Verification
J57 Extended Sales Order Processing
Transaction code transaction text
VA01 Creating Sales Order
VL01N Creating Delivery
VF01 Creating Billing
J58 Consignment Processing
Transaction code transaction text
VA01 Order
VL01N Delivery
VL02N Picking
VL02N Goods Issue
MMBE Stock Overview After Consignment Fill-Up
VA01 Order
VL01N Delivery
VL02N Picking
VL02N Goods Issue
VF01 Billing
VA01 Order
VL01N Delivery
VL02N Goods Receipt
J59 Returns and Complaints
Transaction code transaction text
VA01 Creating Sales Order
VL01N Creating a Delivery
VF01 Creating Billing
QM01 Creating Quality Notification for Customer Complaints
VA01 Creating Credit Memo (Value)
V23 Releasing Credit Memo to Billing
VF01 Billing
VA01 Creating Returns
VA03 Displaying Batch for Return
VL01N Creating Returns Delivery
QA32 Inspecting Goods Receipt
QA32 Creating Usage Decision
MB1B Booking Returns to Relevant Stock
QE51N Quality Inspections and Booking Returns into Unrestricted or Blocked Stock
V23 Releasing Returns to Billing
VF01 Billing
J60 Returnables Processing
Transaction code transaction text
VA01 Creating Sales Order
MMBE Displaying Pallets Stock
VL01N Creating Delivery and Picking
VF01 Creating Billing
MMBE Displaying Pallets Stock
VA01 Creating Sales Order for the Return
VL01N Creating Delivery
VL01NO Creating Delivery Pallets Return without Order Reference
MMBE Displaying Pallets Stock
VA01 Creating Debit Memo Request for Unreturned Pallets
V.23 Releasing Debit Memo Request to Billing
VF01 Creating Billing
MB1A Posting Unreturned Pallets
MMBE Displaying Pallets Stock
J61 Batch Recall
Transaction code transaction text
VA01 Sales Order Processing and Delivery (optional)
VC01N_M Sales Activity u2013 Direct Mailing
SA38 Generate Follow-up Sales Activities
VC01N Processing Follow-up Sales Activities
VC01N Returns
VL01N Shipping: Returns Delivery
QA32 Quality Inspections for Deliveries: Inspecting Goods Receipt
QA32 Creating Usage Decision
MB1B Booking Returns to Unrestricted or Blocked Stock
V.23 Release Credit Memo to Billing
VF01 Create Billing
J62 Cross-Company-Code Sales Processing
Transaction code transaction text
VA01 Sales Order Processing (in Sales Org. BP01)
VL01N Process: Create Delivery
VF04 Create Customer Invoice in the Sales Organization
VF03 Display Customer Invoice Details
VF04 Create an Invoice (internally) in the Plant executing the Delivery
VF03 Displaying Details on the Intercompany Billing Document (IV)
FB03 Display Details on the Inter-company Billing Document
FF67 Entering and Posting a Manual Account Statement
FEBA Postprocessing an Account Statement
J63 Sales Order Processing with 1st Time Customer
Transaction code transaction text
VA01 Creating Sales Order
VA02 Changing Sales Order
J89 Sales of Services
Sales Order creation
Invoice creation
J91 Export sales under bond
Creating Inquiry
Creating Quotation
Creating Sales Order
Creating Pro Forma Invoice
Creating Outbound delivery
Creating Billing document
Printing Billing document
Creating Excise Invoice
Printing Excise Invoice
Creating Excise Bond
Creating ARE- 1
Printing ARE- 1
Posting ARE- 1
Updating ARE- 1
Updating ARE- 1 - Countersigned by customs
Updating ARE- 1- Document Approved & returns by customs
Updating ARE- 1- Sending ARE-1 to Excise department
Updating ARE- 1- Closing ARE-1 once Excise clears the document
J95 Sales at Depot
Customer and Material masters
Creating Sales order
Creating Delivery document
Creating Depot Excise Invoice
Creating Billing document
J96 Deemed Export
Creating Inquiry
Creating Quotation
Capture License
Creating Sales Order
Creating Pro Forma Invoice
Creating Outbound delivery
Creating Billing document
Printing Billing document
Creating Excise Invoice
Printing Excise Invoice
Creating ARE- 3
Printing ARE- 3
Posting ARE- 3
Updating ARE- 3
Closing ARE- 3
Reporting
Standard Reports - Refer: 'Sales - Std Reports' tab
Data Migration
ID ~ Sales & Distribution Description
DC_SD001 Pricing Conditions
DC_SD002 Sales order
Forms
ID ~ Sales Description
FO_SA001 Customer inquiry
FO_SA002 Quotation
FO_SA003 Order confirmation
FO_SA004 Contract
FO_SA005 Invoice
FO_SA006 Scheduling agreement
FO_SA007 Cash Sales
ID ~ Delivery Description additional information
FO_DL001 Picking List
FO_DL002 Delivery Note
Tables:
Sales orders NameDescriptionUses
LIKPShipped Lines header
LIPSShipped Lines detail
VBAKOrder headerEvery order (unless archiving)
VBAPTable fieldsEvery line item (unless archiving)
VBBEOpen sales order line itemsGreat file, but be careful. Contents don't reflect orders that do not affect purchasing (go figure).
VBEPSchedule line item
VBFADocument flow Let's you move from order to shipping document to invoice.
VBUKOrder status
VBUPLine item detail status
VBFKInvoicing header
VBFPInvoicing detail
Customer Data
KNA1Customer Master
KNVVSales information
KNVPPartners (ship-to, etc)

Order to cash flow

Hi,
I have to start some work on order to cash flow. I am not sure what will be the process in CRM and need some input for the same.
See if some one can help me by explaining me the process or by providing a link which throws some light on this.
Thanks in advance,

Hi,
Go throgh the following links.
http://help.sap.com/bp_bblibrary/500/html/W40_EN_DE.htm
http://www.erpgenie.com/sap-event-management/sap-em-order-to-cash-otc-process
I hope , it will help you to understand the process.
by
Prasad gvk.

Order-to-Cash Process Design

Hello Gurus,
what is Order-to-Cash Process Design ? where can I get related information about that?
Many thanks,
Frank Zhang

Hi
OTC (Order To Cash) is the name of the normal SD process. Since Inquiry and Quotation are not mandatory in all the business processes it is not named as Inquiry to cash. As the name says the SD process involves Order-Delivery-Billing-Incoming Payment.
The same way MM cycle is named as RTP - Requisition To Pay.
Thanks,
Ravi

List of issues and fixes for procure to pay process and order to cash process for a trading company

Dear All Gurus
Kindly tell me where I can find the list of all issues arising in procure to pay process
and order to cash process and there fixes for a trading company in support project
Thanking You
Abdul Baseer

Hi Abdul,
There are no standard list to provide, you should identify the issue through regression testing and raise an SR or create a thread accordingly we can help you.
Note:- Issues are vary to instance to instance, version to version, installation to upgrade etc..

Order to cash flow(not able to see order number in release sales order)

Working on order to cash flow.Following these steps
Creating a requisition (Purchasing)
Approve
Creating internal orders(Purchasing)
Import Orders(Order Management)
I'm able to see the order number,in order returns,order organizer
Shipping>Release sales order>release sales order
Not able to see the order number here for Pick release

Hello,
Do you have grants and role to your inventory? if not check Re: Org Code grayed out and defaulted in Shipping Trx form
Regards,
Luko

Digital Signature Business or Legal Scenarios in Order to Cash

Dear Gurus
Can any one suggest me the different process in order to cash cycle where in digital signature could be implemented for various outputs, if you know any such business or legal scenarios???

Dear Yael,
Please go through the following link:
http://help.sap.com/saphelp_sm32/helpdata/en/a0/c3266e44c54d5e8300b5ffe54f756b/frameset.htm
You can also download from SAPinsider:
http://www.sapprojects2006.com/sessions/3.cfm?track=3&usergroup=regular
Reward points if it is helpful.
Regards,
Naveen.

Order to cash journal entry flow

Dear Members,
Please let me know the FICO entries for order to cash cycle including all the taxes applicable [exhaustive scenario]
Thanks
Sheli

Hi Sheli,
As Ajay has already stated there are no entries during sales order creation and Delivery creation, accounting entries starts from PGI which are as follows.
Goods Delivery to Customer - PGI (VL01N)
(Outbound Delivery)
                      Dr. Cost of Goods Sold A/c
                     Cr. Inventory A/c
Raising of Sales Invoices (VF01)
       Dr. Customer A/c ( Accounts Receivable)
       Cr. Sales A/c
       Cr. CENVAT Output Clearing A/c
       Cr. VAT Payable A/c
       Cr. Pro Fright O/w Claim A/c                  If any. Collecting from Customer
       Cr. Pro Export Exp A/c                           If any. Not Collecting from Customer.
       Dr. Freight Outward-XP A/c                   Freight Outward - XP A/c is Expense A/c
       Cr. Pro Export Exp A/c                          If any. Not Collecting from Customer.
       Dr. Commissn On XP Sales A/c           Commissn On XP Sales A/c is Expense A/c
Raising of Excise Invoices (J1IIN)
      Dr. CENVAT Output Clearing A/c
      Cr. Excise BED Payable A/c
      Cr. Excise ECS Payable A/c
      Cr. Excise SHE Payable A/c
Accounting Entry in case of Sale of Scrap (VF01)
       Dr. Customer A/c ( Accounts Receivable)
      Cr. Income From Scrap Sale A/c
      Cr. CENVAT Output Clearing A/c
      Cr. VAT Payable A/c
      Cr. TCS - Scrap Sales
Raising of Excise Invoices for Scrap (J1IIN)
       Dr. CENVAT Output Clearing A/c
      Cr. Excise BED Payable A/c
      Cr. Excise ECS Payable A/c
      Cr. Excise SHE Payable A/c
Receipt of Amount from Customer( F-28)
       Dr. Bank Account A/c
      Cr. Customer A/c ( Accounts Receivable)
Receipt of Amount from Foreign Customer (F-28)
       Dr. Bank Account A/c
      Cr. Customer A/c ( Accounts Receivable)
      Dr/Cr Exchange Fluctuation A/c
Hope this will help you.
Regards
Eugene

Order to cash

Hi Gurus,
can anybody give some idea on order to cash cycle
Thanks & Regards
karunakar

Dear Raj,
The best practice is to setup a vision instance, where you can get complete setup and runing cycles for all the modules.
Regards

Order-to-cash flow in SD

Can you let me know on the Order-to-cash cycle in SD module? The process & steps to set up in SAP.
THx,
Pri

Hello,
SAP NetWeaver is an open integration and application platform that ideally manages heterogeneity and powers collaborative solutions, making it possible to tie disparate systems together in single, point-to-point integration projects and largely reduce the complexity and cost of this process. mySAP Business Suite applications are based on the SAP NetWeaver platform, an integration and application platform. It can enables companies to intelligently commit delivery dates in real time and fulfill orders from all channels on time through optimized manufacturing, warehousing, and transportation processes. This includes real-time, global available-to-promise checks to locate finished products and components. The checks can take into account product characteristics and market constraints; order management, including the creation of quotations, sales orders, and bills; and transportation management, including transportation planning and vehicle scheduling, execution, and tracking of individual shipments. SAP's Extended Order Management supports such processes through a single, common data model to ensure the consistency of the data and the transferred objects. The resulting integration goes beyond mere connecting,. It integrates on three levels: on the presentation level, by bringing all the pieces of information needed about a customer together in one view, whether that information comes from CRM, SCM or financials; on the business process level, by enabling such activities as reserving inventory for particular orders; and on the access level, by allowing information to be shared with customers, suppliers, partners, or others.
Also, NetWeaver is giving SAP an opportunity to convince existing R/3 customers to upgrade to the mySAP product suite. NetWeaver and the underlying Enterprise Services Architecture (ESA) are a major part of SAPs message as to why existing R/3 customers should upgrade to the mySAP product line. NetWeaver also improves SAPs ability to integrate with third party applications within the clients own portfolio or to enable e-commerce with suppliers and partners.
To cut the long story short, though Netweaver can be used to integrate SAP R/3 with CRM and SCM, one needs to look at the other major factors also like the project cost, duration of the project for integration, specialised consulting, development cost etc.
Regards,
Gauravjit.
Reward Points if helpful

Order to Cash - Sales cycle

Hi All,
I want to know Order to Cash(O2C) cycle.Please explain.
-Pallu

Hi Pallu,
The order to cash is followed when a product is sold to customer directly. The process involves in creating a inquiry for a specific product by a customer, which is followed by a quotation by many vendors. once a comparision of quotations are done by the customer the customer selects a particular vendor (goods suplier) to fullfill his material requirement. Later they create a value based contract or quantity based contract (a value based contract specifies that the customer will be suppling 10000 pc of contract within a period similarly a value based contract is like saying the vendor will supply goods worth 1000$ with in the contract period ). release orders/Sales orders will be created following the contracts. followed by delivery of goods. Invoce will be generated and sent to the customer.
hope this helps,
Arun.S

Order to cash flow cycle with navigation

hi everybody
please can anyone of u guys help me to make me understand the order to cash cycle with navigation and preferably screen shots my e mail is. [email protected]
i will be thankful for the help offered
regards

Dear Ragav Velichetti,
Can you please also help me with the presentation. My mail id is [email protected]
Thanks a lot.
regards,
umamaheshwaran

Where to find Pick Release Date After Ship Confirm in Order to Cash cycle

Dear All,
In Order to Cash cycle how to find Pick Release Date. After performing the Ship Confirm Transaction, how to view when we have performed Pick Release Transaction?
Thanks in Advance.
Regards,
Aditya

Run the Diagnostic OM order Information report against the order. In the report you can the find the picked date.
Can I know you are using the transact move order ?
Thanks

Order to Cash (OTC)

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