ORDER TO CASH · PROCESS MAP
What is Order to Cash?
Order to Cash (O2C) is the cross-functional process that accepts customer demand, fulfils it, invoices it, and collects the money.
Order to Cash flow
Select any stage to explore
ONE PROCESS, THREE PROMISES
Why O2C matters
Customer promise
Confirm the right product, quantity, price, and delivery date.
Operational promise
Reserve, pick, ship, and prove that fulfilment actually happened.
Financial promise
Invoice accurately, record revenue, and collect what is owed.
HOW SAP FRAMES THE DEMAND
Three structures make the process executable
The process map explains what the business does. These structures explain how SAP gives the customer demand enough context to move through the process.
Business Partner and roles
Identify who orders, receives, is invoiced, and pays, with the required company-code and sales-area data.
Explore partners → WHATSales document anatomy
Separate shared header data, product-specific items, and quantity-and-date schedule lines.
Explore structure → VALUEPricing mechanics
Turn commercial policy and condition records into an explainable order value.
Explore pricing →FOLLOW THE BUSINESS EVENT
What changes at each stage
Each step creates evidence for the next team. The documents are separate, but SAP keeps them connected as one commercial story.
- 01
Sales order Sales
The customer commitment becomes a controlled SAP document. Pricing, tax, availability, credit, partners, and requested dates are determined.
Creates Sales order and confirmed schedule lines
- 02
Outbound delivery Logistics
Confirmed demand becomes warehouse work. The delivery groups what will ship and controls picking, packing, route, and shipment timing.
Creates Outbound delivery and picking status
- 03
Post goods issue Warehouse + Finance
SAP records that the goods have left. Inventory is reduced, cost of goods sold is posted, and the delivery becomes eligible for billing.
Creates Material document and accounting document
- 04
Billing Billing + Finance
The fulfilled quantity and commercial terms become a customer invoice. Revenue, tax, and the accounts-receivable balance are posted.
Creates Billing document and customer open item
- 05
Payment and clearing Accounts receivable
The bank receipt is matched to the open invoice. Clearing closes the receivable; differences remain visible for follow-up.
Creates Payment and clearing documents
SAP DOCUMENT FLOW
One order leaves a trail
SAP does not overwrite one record as the process advances. It creates linked documents so a user can trace what was promised, shipped, billed, and paid.
Explore document flowWHERE CONTROL LIVES
The checks that protect the flow
Can we promise it?
Pricing, ATP, and credit checks protect margin, feasibility, and risk.
Explore controls → BEFORE SHIPMENTDid the right goods leave?
Picking status, batch or serial rules, and goods issue prove fulfilment.
Explore fulfilment → AFTER BILLINGDid we collect it?
Open-item ageing, dispute handling, matching, and clearing protect cash.
Explore receivables →A distributor confirms 50 chairs for Friday. The warehouse delivers 50 and posts goods issue. Billing creates the invoice and receivable. When the bank receipt arrives, Accounts Receivable matches it and clears the debt.
Explore the module-specific topics that make Order to Cash work: sales orders, pricing, ATP, credit, delivery, billing, receivables, and document flow.