Week 2: Selling Products

Unit 1: Order-to-Cash Overview

Order-to-Cash Overview
Overview

▪ Sell from stock

Customer
▪ Standardized services Order
▪ Make to order
▪ Third-party order processing Payments
Order
and
▪ Project-based services Fulfillment
Reporting

Master Data

Delivery/
Collection Service
Conformation

Invoice

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Order-to-Cash Overview
Sell from stock

Receivables
Customer Sales Sales Customer
Sales Orders Outbound Delivery and
Inquiry Quotes Contract Invoices
Payments

Down
Marketing-to- Receivables and Customer
Payment Inspections
Opportunity Payments Returns
Request

Process mainly driven by

the user
Process mainly driven by
the system
Process that
communicates with third-
party system
Process with relevance to
financials
Related scenario
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Order-to-Cash Overview
Selling standardized services

Executing Receivables
Customer Sales Sales Dispatching and Service Customer
Services and
Inquiry Quotes Contract Scheduling Orders Execution Invoices
Payments

Down
Marketing-to- Procure-to-Pay Receivables Expense
Payment
Opportunity (Services) and Payments Reimbursement
Request

Process mainly driven by

the user
Process mainly driven by
the system
Process that
communicates with third-
party
Accounts Process with relevance to
Receivable financials
Accountant
Related scenario
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Order-to-Cash Overview
Key Benefits

▪ Automatic Order Creation

▪ Pricing
▪ Credit Card
▪ Credit Limit Check
▪ Available-to-Promise Check
▪ Field Services and Repair

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Order-to-Cash Overview
Make to order

Product Definition Make-to-Stock

Sales Sales Customer Receivables

Outbound Delivery
Quotes Orders Invoices and Payments

Procure-to-Pay Inspections
Process mainly driven by
the user
Process mainly driven by
the system
Process that
communicates with third-
party system
Process with relevance to
financials
Related scenario
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Order-to-Cash Overview
Make to order

Sales quote/order with product specification

▪ Sales documents can have customer-specific requirement
▪ Plan multilevel demand for the sales order

Supply for the required products

▪ Create orders
▪ Production plan and production tasks

Inspect and deliver these products to customer

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Order-to-Cash Overview
Third-party order processing

Processing Processing
Supplier Payables and
Invoices Payments
Processing Processing
Creating Creating Processing Processing
Requests Third-Party
Sales Sales Purchase Purchase
for Delivery
Quotes Orders Requests Orders
Quotation Notifications
Processing
Creating
Process mainly driven by Receivables
Customer
the user and
Invoices
Payments
Process mainly driven by
the system
Process that
communicates with third-
party system
Process with relevance to
financials
Related scenario
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Order-to-Cash Overview
Third-party order processing

Direct shipment from third party

▪ Ship directly from your supplier instead of your own
company
▪ Automatic creation of purchase request when sales
order is released
▪ Supplier and customer invoice is created based on
the third-party delivery

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 Order-to-Cash Overview
Project-based services

Procure-to-Pay (Services)

Procure-to-Pay (Non-Stock)

Creating Processing
Creating Creating Creating
Marketing-to- Planning Executing Project Receivables Closing Financial
Sales Sales Customer
Opportunity Projects Projects Invoice and Projects Closing
Quotes Orders Invoices
Requests Payments

Time and Labor Management:

Recording Employee Times Process mainly driven by
the user
Expense Reimbursement
Process mainly driven by
the system
Process that
communicates with third-
party
Process with relevance to
financials
Related scenario
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Order-to-Cash Overview
Project-based services

▪ Manage end-to-end process with a project

▪ Seamless integration with sales quotes and sales
order with project
▪ Record time and expenses directly from the project
▪ Plan and create projects, assign project team and
staffing on the project

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Order-to-Cash Overview
Summary

▪ Sell from stock

▪ Standardized services
▪ Make to order
▪ Third-party order processing
▪ Project-based services

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Additional Material
Order-to-Cash Overview
Sell from stock

Sales/Customer
Warehouse
Service
Operator
Representative

Accounts
Warehouse
Receivable
Manager
Accountant

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Order-to-Cash Overview
Selling standardized services

Sales/Customer
Service
Service
Performer
Representative

Service Accounts
Planner/ Receivable
Dispatcher Accountant

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Order-to-Cash Overview
Make to order

Sales/Customer Service Warehouse Manager Supply Planner

Representative

Inspector Quality Manager Accountant

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Order-to-Cash Overview
Third-party order processing

Sales/Customer
Operational
Service
Buyer
Representative

Strategic Buyer Accountant

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Order-to-Cash Overview
Project-based services

Sales/Customer
Project Manager Service
Representative

Billing Clerk Accountant

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Order-to-Cash Overview
Sell from stock

▪ Automatic Order Creation

A sales order can be created on the basis of a lead, opportunity, sales
quote, or through an E-Shop or B2B interface (external system)
▪ Pricing
The system determines prices and discounts automatically. You can also
enter these manually, if required. The system can support you by displaying
the cost and profit margin
▪ Credit Card
Sales order processing supports payment by credit card with integration
to payment service providers
▪ Credit Limit Check
You can minimize credit risk by specifying a credit limit for a customer.
If a credit limit in an order is exceeded, a delivery block is set automatically
▪ Available-to-Promise (ATP) Check
The system informs you whether the products can be delivered at the
requested date and in the requested quantity
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Order-to-Cash Overview
Possibilities

▪ Available-to-Promise (ATP) Check

The system informs you whether the products can be delivered at the requested date and in the requested
quantity
▪ Pricing
The system determines prices and discounts automatically. You can also enter these manually, if required.
The system can support you by displaying the cost and profit margin
▪ Credit Card
Sales order processing supports payment by credit card with integration to payment service providers
▪ Credit Limit Check
You can minimize credit risk by specifying a credit limit for a customer. If a credit limit in an order is
exceeded, a delivery block is set automatically
▪ Automatic Order Creation
A sales order can be created on the basis of a lead, opportunity, sales quote, or through an E-Shop or B2B
interface (external system)

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