Lesson 5 of 5
Monitoring conversion and testing reference flows
9 min
Pre-sales documents matter because of what they turn into. Two things therefore need proving: that conversion works (the right data flows from quotation or contract into the order) and that the business can see how well it converts. This lesson covers both.
Monitoring quotation conversion
The quotation conversion rate is usually defined as the value (or number) of quotations converted into orders, divided by the value (or number) of quotations created in a period. SAP S/4HANA's embedded analytics cover quotation and contract conversion alongside incoming orders and sales volume; the exact app names vary by release, so search the launchpad for "quotation" in your system. Operationally, Manage Sales Quotations filtered by status and validity, the My Sales Overview card for open quotations, and VA25 (list of quotations) in SAP GUI show what is open, expiring or rejected.
| Measure | Definition | Contoso June result |
|---|---|---|
| Quotations created | Net value of quotations with a creation date in the period | $1,200,000 |
| Converted | Net value referenced by sales orders | $540,000 |
| Rejected | Net value with a reason for rejection | $300,000 |
| Open | Still within validity, not converted or rejected | $260,000 |
| Expired, not closed | Validity passed, no reason for rejection | $100,000 |
| Conversion rate | Converted ÷ created | 45% |
A worked quotation conversion summary. Figures are fictional.
The "expired, not closed" line is a data quality signal, not a sales result. Every dollar there should be either converted or rejected with a reason. A rising number means the sales team is not closing lost quotations, which flatters the open pipeline and distorts the conversion rate.
Testing reference document flows
A reference-flow test proves that a successor document copied the right things from its predecessor and updated the predecessor correctly. For Contoso, the core set is short.
| # | Scenario | Expected result |
|---|---|---|
| 1 | Order with reference to a valid quotation, full quantity | Prices, partners and terms equal the quotation; quotation item completed |
| 2 | Order for part of the quoted quantity | Quotation item partially referenced; remaining quantity open per completion rule |
| 3 | Order with reference to an expired quotation | Configured warning or error appears; behavior matches the business decision |
| 4 | Release order against a quantity contract | Contract price applied; released quantity increases; open quantity decreases |
| 5 | Release order that would exceed a value contract | Configured message when the target value is exceeded |
| 6 | Release order from a non-authorized ship-to | Release refused or warned per the contract's partner rules |
| 7 | New delivery schedule on a scheduling agreement | Old schedule replaced; delivery created from a due line |
| 8 | Lost quotation closed with a reason for rejection | Disappears from open lists; counted as rejected in analytics |
Reference-flow test scenarios.
- Expected valuesWrite the quoted or contract price, quantities and statuses you expect
- Create with referenceExecute the step, recording each document number
- Compare copied valuesSuccessor fields against the predecessor: price, quantity, partners, terms
- Check predecessor updateQuotation status, contract released quantity or schedule lines
- Capture document flowExpanded flow showing predecessor, successor and statuses
Defects that show up in reference flows
- Quoted price replaced by the current list price because the pricing type re-determines all conditions.
- Partners on the order differ from the quotation because partner determination re-ran instead of copying.
- Quotation stays open after full conversion because the completion rule or quantity update is wrong.
- Expired quotation converts silently when the business wanted a warning or a stop.
- Release order does not reduce the contract balance because it was assigned at header level only.
- Scheduling agreement deliveries miss a week after a schedule was replaced.
What would you do?
During regression testing after a support package, the quotation-to-order test passes: the order is created and the price matches. But the quotation still shows status "open" after full conversion. Grace wants to know whether this is worth a defect.
- Conversion rate = converted ÷ created, by value or count, for a defined period.
- Expired quotations without a reason for rejection are a data quality problem.
- Reference-flow tests compare copied values and check the predecessor update.
- Include partial conversion, expired validity, contract consumption, partner rules and schedule replacement.
- Evidence: predecessor and successor side by side, plus the document flow with statuses.
Check your understanding · not graded
Lesson check
1. How is the quotation conversion rate usually calculated?
2. What does a growing "expired, not closed" value indicate?
3. In a reference-flow test, what must be checked besides the successor's values?
4. Which scenario tests contract partner rules?