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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[@chandukotha6264]

Tq uu so much great explanation

[@magiciendesfemmes2850]

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

[@VikramFotani]

Welcome

[@dongkv5035]

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

[@VikramFotani]

Thanks

[@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.

[@KarimBenabd]

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

[@VikramFotani]

Glad to help you

[@byungk03]

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

[@VikramFotani]

Thanks

[@prapti3255]

easy and simple explanation.
thank you sir.

[@sajishponneth5345]

Great explanation and clear and structured content! Thanks so much

[@VikramFotani]

Thanks

[@dariusjayavanth2763]

Amazing explanation 😮🎉🎉

[@user-iw6bw1tw6p]

Great explanation

[@nallam9527]

Good job sir.

[@RohitMoghe]

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

[@VikramFotani]

Thanks

[@ruchitaraut6683]

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 .

[@gautamjangam7157]

Great explain😊😊

[@sadhanashekar5374]

Super info

[@bhaskargyadangi8296]

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

[@swapnakeethu9303]

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

[@shashidharnadimpally16]

Very good explanation.

[@Arunkumar-fj7yx]

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

[@sd6877]

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 ?

[@malligaarjun334]

It's good explanation

[@VikramFotani]

Thanks

[@sap.ficotrainingintelugu]

Great training

[@kundatirumalesh5368]

Super

[@VikramFotani]

Thanks

[@jyotitiwari514]

In detail explanation, thank you so much for :)

[@VikramFotani]

welcome

[@ashishaggarwal5413]

Well explained! Thanks

[@VikramFotani]

welcome

[@sivakrishnareddy980]

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?

[@sureshkumarpratapa8035]

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 ?

[@VikramFotani]

In both the cases, COGS is the price at which material is valuated in stock

[@suneeltechy]

Learn SAP SD full course at free of cost ..in the below given channel .
Check it once and subscribe if you feel it is useful.
th-cam.com/channels/e3ftxqcRPIHYOM5XkLt3jQ.html

[@twinklegandhi9071]

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

[@VikramFotani]

Visit website: www.gauravconsulting.com

[@paldb24]

Lovely Thanks

[@malayakumar8422]

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.

[@himaantbandaru4378]

Thank you sir for sharing this

[@VikramFotani]

welcome

[@Babu-yy9wj]

nicely explained

[@VikramFotani]

Thanks

[@amolvaishnav4473]

Hi Sir,
Following u since quite long time. Your approach is very simple and unique.
I have one question on this lecture, if i wish to assign Cost Center to COGS account at the time of PGI, how can i do that?
Thanks

[@vijaybalak1]

Thanks a lot

[@vikassoni3768]

Please tell me what kind of accounting question is asked in inter view

[@shahbaz633]

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

[@VikramFotani]

Not as of now. You can check our courses at www.gauravconsulting.com

[@yashchauhan7448]

Shouldn't stock get debited( reduced as the items have been shipped) and COGS to be credited( that we have incurred cost of goods )?

[@sivakrishnareddy980]

As Stock is Asset, if it is debited, Its value will be increased. However as the stock is going outside, it shall be decreased. [ Based on fundamental Accounting Principle - Real Accounts ]

[@malayakumar8422]

Sir, How the value is determine in Out bound delivery entry . In your video the delivery value is 1200 but entry for Out bound delivery entry (COGs Dr...100 To Stock Cr. 100 ).

[@VikramFotani]

Hi Malaya,
Please post your questions in our forum section
Forum link: www.gauravconsulting.com/forum

[@candyfloss184]

Not necessary that you sell to customer for 100 rupees when you have inventory for 100 rupees.

[@sivakrishnareddy980]

Outbound entry will be created with value in Material Master. In sir's example, Inventory worth of INR 100 is sold for INR 1200 to Customer. Hence Out bound entry will be created for INR 100 and Billing entry will be created for INR 1200.

[@powerofcompounding2365]

Sir Your Video are very good.
How Can I get all course SAP SD S/4 Hana video

[@VikramFotani]

Go through below link
www.gauravconsulting.com/product-page/sap-s-4-hana-sales-sd-1909-videos

[@chanduaeloori3503]

Hi Vikram...thanks a lot for uploading this O2C cycle with short and krisp explanation in detailed. Can you please upload P2P cycle as well?

[@VikramFotani]

Here you go
th-cam.com/video/6EK1dO70Zpw/w-d-xo.html
Just uploaded on your request!!

[@swethareddy9419]

Sir I'm confused one thing you told that customer will come from reconciliation account which is assign in customer master data but
Recon accounts doesn't allow for the postings then how does it works for the vf01

[@SMC-Do]

It will not allow in general posting like FB50 and fb01 I believe

[@sivakrishnareddy980]

It mean we can not directly post that GL Account like wise bank Account/ Expenditure Account/ Revenue Accounts. While making entry, u can select the Customer Account ( Customer master - Subledger ) , then it will be posted to recon account ( GL Account - It can't be posted directly).
Note: There are alternative ways to post directly to recon Accounts.

[@Shantelugu]

I have a doubt. Pls explain it.
1.What is the difference between sales invoice billing .....T Code_ FB70 & VF01.
2. When will i use FB70

[@VikramFotani]

We use FB70 to book Customer Invoice without Sales Order. If you want to create a customer invoice with reference to SD Sales Order, then we use VA01.

[@rohitnarsale12]

Hi
This O2C cycle not downloading
Can you update again

[@ahzamrasheed1208]

Hi Gaurav, I tried your email, but it is not working. Can you tell me about all the prerequisites of O2C and where and how they are configured? Giving me the path to configure them would be enough.
Thanks

[@VikramFotani]

Hi Ahzam,
Sorry, I am not clear with your question. Can you please WhatsApp at [phone].

[@rumipromitsett4588]

macam mana nak buat?

[@Vihari.]

why tr no contract in O2C , without paper agreement how the order will happen...? is he one-time vendor or what ....?

[@VikramFotani]

Hi Vikash,
Please post your queries on our forum section
www.gauravconsulting.com/forum

[@Nitishkumar-vs9hx]

We can also make PGI through VL06O.

[@VikramFotani]

Yes

[@myworld2246]

Can you assist on fico

[@VikramFotani]

Check course details: www.gauravconsulting.com/product-page/sap-s-4-hana-finance-beginners-live-training

[@rohitnarsale12]

This video is not working

[@VikramFotani]

Visit website and buy full video access package.
www. gauravconsulting.com

[@abhisheksharma2808]

Message no. BS051
how to overcome with error

[@bishnubehera7701]

pgi full form

[@candyfloss184]

Post goods issue

[@musabnachan8529]

Great explanation