This process flow diagram illustrates the key steps involved in the Order to Cash (O2C) process within an SAP ERP system. It starts with sales order entry and ends with managing and processing collections. The flowchart visually depicts the sequence of activities and includes relevant SAP transaction codes (T-Codes) from SAP Best Practices to indicate the system interactions involved in each step.

Detailed Step-by-Step Breakdown of O2C Process Flow Diagram in SAP:

1. Sales Order Entry (VA01): Creation of a standard sales order. This can be done with reference to a quotation or sales contract. Entry can be done manually or via an external system.
2. Availability Check: A check is performed during sales order creation to verify the availability of the requested goods.
3. Calculate/Enter: Prices, discounts, and other price conditions are calculated and entered into the sales order.
4. Review Credit Block on Sales Order (VKM1, VKM3): The credit status of the customer is evaluated. Any blocked or credit issues are resolved.
5. Delivery Process (VL01N): A delivery document is created, and a warehouse transfer order is generated for picking.
6. Shipment Process (VT01N): Group deliveries are consolidated into a shipment document.
7. Optional Perform Quality Check (QA32, QA11): A quality check is performed (optional) to ensure the goods meet quality standards.
8. Post Goods Issue (VL02N): The warehouse stock is issued, and the Cost of Goods Sold (COGS) is posted.
9. Print Delivery Manifest: Printing of delivery outputs like manifest occurs through configured output determination in NACE
10. Billing Process (VF01): A customer invoice or credit memo is generated and sent. Revenue is recognized.
11. Print/Email: Emailing and printing utilizes output determination setup in NACE for billing documents.
12. Manage Accounts Receivables (F-28): Incoming receipts from the bank are posted, and customer open items are cleared.
13. Manage and Process Collections (FBL5N, F150, F-35): Aging receivables are analyzed, dunning is performed, and uncollectible balances are written off (if applicable).