Complete OTC (Order to Cash) Process in SAP SD – S/4HANA
Business Process Flow (O2C Cycle):
1. Pre-sales (optional) – Inquiry/Quotation
2. Sales Order – Customer places an order
3. Availability Check (ATP)
4. Delivery Creation
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5. Picking & Packing
6. Post Goods Issue (PGI)
7. Billing
8. Payment Receipt (FI-AR)
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Step-by-Step OTC Process with Configuration
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1️⃣ Pre-Sales Activity (Inquiry / Quotation)
🔹 T-Codes:
● Inquiry: VA11
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● Quotation: VA21
🔹 Configuration:
● SPRO → SD → Sales → Sales Documents → Sales Document Header → Define
Sales Document Types
○ Inquiry (IN)
○ Quotation (QT)
2️⃣ Sales Order Creation
🔹 T-Code: VA01
🔹 Configuration:
● Define Sales Document Types (OR, RE, etc.)
→ SPRO → SD → Sales → Sales Documents → Define Sales Document Types
● Assign Item Categories (TAN, TAX, etc.)
→ SPRO → SD → Sales → Sales Documents → Define Item Categories
● Schedule Line Categories (CP, CN)
→ SPRO → SD → Sales → Schedule Lines
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3️⃣ Availability Check (ATP)
🔹 Performed during sales order creation.
🔹 Configuration:
● Check Control in:
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● SPRO → SD → Basic Functions → Availability Check and Transfer of Requirements
○ Checking Group (02 - Individual requirements)
○ Checking Rule (A for Sales Order)
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4️⃣ Delivery Creation
🔹 T-Code: VL01N
🔹 Configuration:
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● Define Delivery Types (LF, LO)
→ SPRO → SD → Shipping → Deliveries → Define Delivery Types
● Item Categories (TAN)
→ SPRO → SD → Shipping → Deliveries → Define Item Categories
5️⃣ Picking & Packing
🔹 T-Codes:
● Picking: VL02N
● WM Integration: LT03, LT12 (if WM/EWM used)
🔹 Configuration:
● SPRO → SD → Shipping → Picking
○ Define Picking Location Determination (based on shipping point, plant,
storage condition)
6️⃣ Post Goods Issue (PGI)
🔹 T-Code: VL02N → PGI button
🔹 Configuration:
● Automatic posting of accounting entries:
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○ COGS Account (Cr)
○ Inventory Account (Dr)
🔹 T-Code: VF01
🔹 Configuration:
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● Integration with FI/MM: OBYC settings (WRX, VAX)
7️⃣ Billing
● Define Billing Types (F2, G2)
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→ SPRO → SD → Billing → Define Billing Types
● Copy Control (VTFL for delivery → billing)
○ Controls pricing, data transfer
● Account Determination (KOFI, KOFK)
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→ SPRO → SD → Basic Functions → Account Assignment
8️⃣ Payment Receipt (FI-AR)
🔹 T-Code: F-28
🔹 Integration with SD:
● Incoming payment is cleared against the customer invoice.
● Updates the customer line item (open → cleared).
Key Tables in O2C Process
Table Description
VBAK Sales Order Header
VBAP Sales Order Item
LIKP Delivery Header
LIPS Delivery Item
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VBRK Billing Header
VBRP Billing Item
BKPF
BSEG
FI Document Header
FI
Items
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Document Line
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Key Config T-Codes
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Process Step T-Code
Sales Order VA01
Delivery VL01N
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PGI VL02N
Billing VF01
Payment Receipt F-28
Copy Control VTFL, VTFA
Output Control (S/4HANA) OPD (BRF+)
