Overview of the order to cash cycle
The order to cash cycle helps businesses run their end-to-end sales processes when receiving customer orders. The order to cash cycle begins with sales order creation. A sales order created in SAP CRM allows businesses to carry out the selling of products or goods to the customer. Once a sales order is created in SAP CRM, delivery processing and billing is carried out to complete the whole order to cash cycle.
Figure 6.1 shows the order to cash cycle in CRM, Advanced Planner and Optimizer (APO), ERP Central Component (ECC), and Transport Management System (TMS):
Figure 6.1 – The order to cash cycle in SAP CRM, SAP APO, SAP TMS, and SAP ERP
The steps shown in Figure 6.1 have been elaborated here:
- The order to cash cycle in CRM, APO, and TMS starts with sales order creation in SAP CRM.
- An Available to Promise (ATP) check is carried out in the SAP APO system.
- Once the sales order is saved in SAP...
