Components of SAP Order to Cash
In this blog, I explained the main functions of accounts receivable and discussed how accounts receivable accounting works in SAP S/4 HANA in terms of integration with the SAP order-to-cash-process, customer master data, and accounts receivable transactions such as customer invoices and payment postings. Explore the essential components of SAP Order to Cash with SevenMentor’s comprehensive guide.
Sales Order
- A Sales Order is a document we generate in the system, based on a purchase order document received from the customer or buyer. It includes details about the goods or services, quantity, price, customer information (e.g. shipping address and billing address), terms & conditions, etc.
- Since it is a kind of agreement between the buyer and seller that means, the company promises to deliver the ordered product on an agreed-upon date, quantity, and price.
- Likewise, the Sales Order process is also connected with the finance section of the company as it normally affects the business accounting part. Communication is always flowing between the finance and Sales departments in terms of revenue recognition, order management, and billing information Process.
Customer Payments in SAP Order to Cash
- The Incoming Payments Process is an important part of Financial Accounting in SAP S/4 HANA
- Once a sale happens, the system records the customer invoice. The next crucial step in financial accounting is to secure the revenues through the efficient customer payment process.
- Before accepting the payment, it is important to understand the payment method options and weigh the advantages and disadvantages of each.
- Subsequently, we can generate an incoming payment document using a variety of payment forms, ranging from traditional cash and check payments to modern methods such as credit cards, mobile payments, bank transfers, and even bills of exchange.
- Understanding these options enables businesses to effectively manage their financial transactions and ensure seamless revenue and the Transaction Code is F-28.
- Understanding these options enables businesses to effectively manage their financial transactions and ensure seamless revenue collection.
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Author:-
Priyanka Jubre
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