Order to Cash Process in SAP

In this topic you can learn detailed explanation of order to cash process with accounting entries.

 

 

Inquiry: Transaction code – VA11

 

The customer inquires about products and services price. No accounting entry will be generated.

 

 

Quotation for inquiry: Transaction code – VA21

 

Quotation is nothing but the price given to the customer. No accounting entry will be generated.

 

 

Sales order creation: Transaction code – VA01

 

Sales order can be created with reference to quotation or without reference to quotation. No accounting entry will be generated while creation of sales orders.

 

 

Delivery: Transaction code – VL01N

 

The following accounting entry will be generated during the post goods issue

 

COGS Account Dr

 

Stock Account Cr

 

 

Invoice: Transaction code – VF01

 

The following accounting entry will be generated and supplier needs to send invoice to the customer for the goods delivered.

 

Customer Account Dr

 

Discount Account Dr

 

Sales Revenue Account Cr

 

Output Tax Account Cr

 

 

Payment from customer: Transaction code – F-28

 

The following entry need to record.

 

Bank Clearing Account Dr

 

Customer Account Cr