This image illustrates the typical sales cycle (a.k.a O2C or SD), from the initial customer inquiry to final payment in SAP S/4HANA. It highlights the key steps and their seamless integration within SAP. Use it as a quick reference to see how a sale progresses from the initial customer contact to the final payment. Each step in the image represents a key activity in the process, highlighting the seamless flow of information and actions within SAP. Take a look below:

The Journey Begins: Pre-Sales & Sales Order

The sales cycle often starts with pre-sales activities. These could be simple customer inquiries or more formal requests for quotations. If a customer likes what they see, they respond with a purchase order. This purchase order then kicks off the creation of a sales order within SAP.

The Sales Order: The Heart of the Process

The sales order is a crucial document. It essentially acts as a request to deliver specific goods or services within a defined timeframe. This order then initiates a series of follow-up processes.

Material Management & Shipping: Getting the Goods Out

First, the sales order triggers a requirement in material management. The system checks if the requested quantities can be confirmed for the specified dates. If needed, new delivery dates are confirmed. Then, the shipping process is initiated, which culminates in the goods issue posting in material management.

Accounting Integration: Seamless Financial Tracking

The power of SAP lies in its integration. When you invoice the customer or post the goods issue, accounting entries are created automatically. This ensures accurate and real-time financial tracking.

Completing the Cycle: Billing and Payment

The sales order process continues with the billing of the customer and concludes when the payment is received and recorded in the system.