This flowchart illustrates the end-to-end (E2E) Product Sales process in SAP Order to Cash (O2C) Cycle, designed for a metal fabrication and manufacturing company specializing in standard or customized products like spectacle blinds and other regularly manufactured items.

The flowchart is structured by organizational roles, showing how responsibilities and tasks flow between different departments throughout the product sales lifecycle in SAP.

A detailed explanation of the process shown in the flowchart:

1. 📞 Customer Inquiry: The process begins when a customer or prospect sends an inquiry with technical specifications. This inquiry is entered into the SAP system, capturing:

• Customer or prospect number
• Material number (if available) or material-related information for each item
• Quantity for each item
• Expected date of response The Document Controller checks if the customer exists in the system, while the Sales Manager approves new customer requests.

2. 🛠️ Material Set up and Costing: Upon receiving the inquiry, the following steps are carried out:

• Material creation (finished good), if not already available
• Bill of materials creation
• Routing (operations with work centers defined)
• Product costing and cost release The Design Engineer creates the BOM and routing, while the Estimator performs the costing based on these inputs.

3. 💼 Quotations: Once the final cost is determined, a quotation is created in the system. This document presents the customer with a legally binding offer, including:

• Sales Area details
• Customer information and validity period
• Material numbers, quantities, and pricing details
• Payment Terms and Incoterms
• Partner functions The Sales team prepares the quotation, which then undergoes approvals from the Finance Manager and General Manager or CFO/GGM, depending on the value.

4. 📋 Sales Order Creation: Upon customer confirmation, a sales order is created, either independently or with reference to the quotation. Key details include:

• Sales Area information
• Customer number and PO details
• Material numbers, quantities, and pricing
• Payment Terms and Incoterms
• Partner functions The Finance Manager reviews the order, and the General Manager provides final sign-off.

5. 🏭 Execution: The sales order item generates a ‘Planned Order’ in the background, which is converted into a production order for execution. The Production Manager oversees this process, ensuring the finished goods are account-assigned to the sales order item.
6. 🚚 Delivery and Goods Issue: The item is delivered from stock through a delivery document referencing the sales order. For serialized products, the serial number is entered in the delivery. Upon posting goods issue, the following entries are made: Dr Cost of Goods Sold Cr Inventory The Store department handles the physical delivery and customer acknowledgment.
7. 📊 Billing: Following the delivery, billing occurs. The Finance team creates the invoice based on the sales document data. The system generates an invoice number, and the document can be printed for the customer. Accounting updates occur in the background: Dr Customer Account Cr Revenue
8. 💰 Settlement: The fully executed sales order item is settled to Controlling – Profitability Analysis. This final stage ensures proper revenue recognition and provides insights into product profitability.

This process demonstrates how the company manages its product sales efficiently through SAP, integrating various modules like Sales & Distribution (SD), Materials Management (MM), Production Planning (PP), and Finance (FI-CO) to streamline operations from inquiry to settlement.