Order to Cash (O2C) Process in SAP S/4HANA — Technical User Step-by-Step Procedure
1. Customer Master Data Creation
Transaction: BP – Business Partner (code BP)
Key Fields:
o General Data: Name, Address, VAT/Tax Code, Contact Details (phone,
email).
o Sales Area Data: Sales Organization, Distribution Channel, Division,
Customer Group, Reference Customer, Payment Terms, Shipping
Conditions.
o Company Code Data: Reconciliation Account, Payment Terms, Billing
Language, Risk Category, Customer Block.
o BP Roles: Assign at least "FLCU00" (General) and "FLCU01" (Customer
Sales) roles.
Output/Documents: Customer number (Business Partner number)
Modules: SD, FI-AR
Notes: Requires an existing customer account group and CVI integration for
dual roles. SAP Fiori app: “Manage Business Partner” (ID F3163).
2. Sales Order Entry
Transaction: VA01 – Create Sales Order
Key Fields:
o Header: Order Type (e.g., OR = Standard Order), Sales Organization,
Distribution Channel, Division.
o Partner Functions: Sold-to Party, Ship-to Party, Payer, Bill-to.
o Materials: Material Code, Order Quantity, UoM, Requested Delivery Date.
o Pricing: Pricing conditions, price lists, discounts.
o Logistics Data: Shipping Point, Incoterms, Destination Region.
o Texts/Notes: Delivery instructions, Reference Documents.
Output/Documents: Sales Order number
Modules: SD, MM, FI/CO
Notes: Credit check performed automatically if configured. SAP Fiori apps:
“Create Sales Order – VA01”, “Manage Sales Orders”.
3. Availability Check
Transactions: MMBE – Stock Overview, CO09 – Stock/Requirements List
Key Fields: Material, Plant, Quantity, Delivery Date.
Output/Documents: Availability confirmation, proposed alternative dates if
stock insufficient.
Modules: SD (ATP), MM
Notes: Availability Check logic depends on MRP, stock status, and calendar
settings.
4. Delivery Creation
Transaction: VL01N – Create Outbound Delivery
Key Fields:
o Order Reference: Sales Order number
o Shipping Point: If not pre-determined.
o Delivery Date: Planned shipment date.
o Logistics Data: Warehouse, carrier, Incoterms.
Output/Documents: Delivery number (Warehouse/Shipping document)
Modules: SD, WM, TM (if active)
Notes: Updates order status to “Delivery Created”. SAP Fiori apps: “Create
Outbound Delivery with Order Ref.”
5. Post Goods Issue (PGI)
Transaction: VL02N – Change Delivery (Post Goods Issue)
Key Fields:
o Delivery Document: Delivery number
o Posting Date, Plant: Actual shipping date, Warehouse
o Movement Type: 601 (goods issue for sales)
Output/Documents: Material Document (inventory movement), Accounting
Document (FI posting)
Modules: SD, MM-IM, FI-CO
Notes: Transfers ownership to customer, updates delivery status to “Delivered”.
SAP Fiori app: “Post Goods Issue”.
6. Billing (Invoice Creation)
Transaction: VF01 – Create Billing Document
Key Fields:
o Reference Document: Delivery or Sales Order
o Billing Type: e.g., F2 = Standard Invoice
o Billing Date: Document date
o Texts/Notes: Tax notes, invoice comments
Output/Documents: Billing Document, Accounting Document (revenue
recognition, customer AR)
Modules: SD, FI-AR, FI-GL
Notes: Credit blocks or open items might restrict billing. SAP Fiori apps: “Create
Billing Document”, “Manage Billing Documents”.
7. Incoming Payment Posting
Transaction: F-28 – Post Incoming Payment
Key Fields:
o Company Code, Bank Account: Company and cash/bank account
o Customer: Sold-to or Payer
o Amount: Payment amount and currency
o Reference: Invoices to clear, Payment Method
Output/Documents: Payment Document (clears customer open items)
Modules: FI-AR, FI-GL
Notes: F-32 used for manual clearing, FSCM for advanced credit management,
Fiori app: “Post Incoming Payments”
