SD FI Integration O2C Cycle - SAP S/4 HANA | SAP SD Order to Cash Cycle

Order-to-Cash is an integration point between Finance (FI) and Sales (SD). It is also known as OTC or O2C in short form. It is a business process that involves sales order from customers to delivery and invoice. It comprises SO, Delivery, Post Goods Issue (PGI) and billing to customers. OTC process is a very important process in Enterprise Resource Planning software(ERP Software). Both major ERP software SAP and Oracle include this process.

This process gives integration between customer master record, sales organization, sales offices, distribution channels, divisions and plants.
Generally steps are as follows:

Customer Inquiry
Quotation for customer inquiry
Sales Order creation
Post Goods issue (PGI)
Delivery
Billing- Bill sent to customer
Receipt of money- Customer Payment

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[KarimBenabd]

Great content, clear explanations, and step by step decomposition of transaction and process! Thanks.
You got one subscription!

[magiciendesfemmes]

great explanation sir thanks from germany, the indien computer science teacher and youtuber are the best in the world

[byungk]

Thank you, Mr Gaurav. Your lecture was a great help to me.

[dongkv]

Thanks lot for making videos, your positively impacting and improving many career helping new finance professionals as well... may God bless you great life🙏

[prapti]

easy and simple explanation.
thank you sir.

[TheVivekgdesai]

Many thanks Vikram sir. It was very nice session explained in most simple way and clear understanding an. Now I am confident to answer on FI-SD Integration question.

[sajishponneth]

Great explanation and clear and structured content! Thanks so much

[bhaskargyadangi]

Good one Vikra ji...Thanks for sharing!!

[RohitMoghe]

You are best sir, Thanks a lot. Great explanation and clear and structured content. really loved it

[swapnakeethu]

Nice to information give u sir thanks give me more videos please to real time S4 hana video please

[jyotitiwari]

In detail explanation, thank you so much for :)

[ruchitaraut]

great and clear explanation however very bad quality of displaying screen so when you click the screen after sometime we can configuration which quiet confusing .

[Arunkumar-fjyx]

Account modifier comes from OMWN transaction, where based on movement type, special stock indicator, movement indicator it will fetch account modifier

[sureshkumarpratapa]

Great Explanation Sir. I would like to understand 1. how the COGS Value is determined If it is a trading business? and 2. how the COGS Value is determined If it is a non-trading business ?

[twinklegandhi]

Hello Sir, Great explanation ! Have you uploaded video of configuration steps for FI And SD

[sd]

It was great explanation Vikram. Being BW consultant, I have many questions in my mind like how FI documents created from Billing, Which category it goes to (Vendor/Customer), how FI_AP and FI_AR documents are connected, why BSID/BSAD, BSIK/BSAK are necessary when we have everything in BKPF/BSEG and many more. can you please suggest any link or make one video for BW consultant specifically ?

[sivakrishnareddy]

Dear Sir, Your videos are short and sweet [ Awesome ]. I hope GBB-VBR is for "Goods issued to production". Correct me If I am wrong.

[Sunnypvs]

What operating system you are using. Im curious?

[shahbaz]

Dear Vikram.
Please let me know do you provide classes on SAP SD module Training.

[malayakumar]

Sir, Thanks for the nice explanation! But i have one doubt regarding Outbound delivery entry. As per revenue recognition principle we should recognize the revenue once the goods delivered and risk and rewards transferred to the customer. so as per my understanding Customer a/c Dr to Goods issue a/c Cr and when billing will be done then system will post entry Goods issue a/c Dr to Revenue a/c. But as per SAP Cogs a/c Dr and Stock a/c Cr. I am unable to understand the logic here and COGs is a expense account why we are Debiting expense when we need to recognize the revenue. I would appreciate your help on this.

Note: Goods issue account is a clearing a/c i assume here.