SAP SD Order-to-Cash (OTC) Training

Master the complete sales cycle in SAP SD from order creation to payment with real-world examples.

If you truly want to understand how a business moves from “getting a customer order” to “receiving the payment,” then the SAP SD Order-to-Cash (OTC) process is where it all comes together.

This process connects sales, logistics, inventory, and finance into one continuous flow. Every customer order is handled efficiently, from stock checks to invoicing, until payment is received.

What Is SAP SD OTC?

Order-to-Cash (OTC) in SAP SD covers the entire sales journey — from a customer request to payment posting in the system. It ensures all departments stay perfectly aligned.

“SAP OTC is the process of turning a customer’s order into cash — efficiently, accurately, and with full visibility across the business.”

Overview of SAP OTC Cycle

Step-by-Step Explanation of the OTC Process

• – Inquiry: Customer requests info (VA11). No accounting impact.
• – Quotation: Formal offer to customer (VA21). No accounting impact.
• – Sales Order: Customer confirms purchase (VA01). Data prepared for delivery & billing.
• – Delivery: Warehouse prepares shipment (VL01N). PGI reduces inventory and posts COGS.
• – Billing / Invoice: Invoice generated (VF01). Revenue recognized.
• – Payment: Customer payment recorded (F-28). Receivables cleared.

Key Components That Drive the OTC Cycle

• – Sales Order Management (VA01)
• – Availability Check (MMBE)
• – Delivery & Logistics (VL01N)
• – Billing (VF01)
• – Payment Processing (F-28)

Real-World Example – How OTC Works

Imagine an online electronics store powered by SAP:

• Customer orders a laptop online → Sales Order (VA01) created
• Availability check ensures stock (MMBE)
• Delivery order generated (VL01N)
• Warehouse ships product; PGI posts inventory & COGS
• Invoice generated (VF01)
• Payment recorded (F-28)

Why the OTC Process Matters

• – Efficiency: Automates repetitive tasks
• – Transparency: Real-time order visibility
• – Accuracy: Aligns financial data with operations
• – Customer Satisfaction: Ensures timely delivery & billing
• – Decision-Making: Provides performance analytics

Conclusion

The SAP SD Order-to-Cash (OTC) process is the heart of any SAP implementation. It bridges sales, logistics, inventory, and finance into one smooth flow.

At Feligrat, our training ensures you understand the business story behind each step. You gain the skills to handle end-to-end OTC processes confidently, developing the mindset of a functional consultant.