Lesson 3 of 5
Incoming orders, backlog and sales volume
9 min
Sales managers watch three numbers above all: how much new business came in, how much is waiting to be fulfilled, and how much was actually sold. In SAP S/4HANA analytics these are incoming sales orders, open orders (backlog) and sales volume. They sound similar, they use different documents and dates, and confusing them is the most common cause of "the numbers don't match".
| Measure | Based on | Typical date | Contoso Q2 example |
|---|---|---|---|
| Incoming sales orders | Sales order net value | Order creation date | $2.4M of orders entered in Q2 |
| Open orders (backlog) | Ordered value not yet delivered and/or billed | As of today | $0.9M ordered but not yet billed |
| Sales volume | Billing document net value (credits reduce it) | Billing date | $2.1M invoiced in Q2 |
Notice how the three connect. Orders flow in, wait in the backlog while they are delivered, and leave the backlog as sales volume when billed. Over a period, incoming orders minus sales volume roughly equals the change in backlog, after cancellations, rejections and returns. If incoming orders rise while sales volume stays flat, the backlog grows, which may mean strong demand or a fulfillment problem.
- Incoming ordersValue enters when orders are saved
- BacklogValue waits while orders are confirmed, delivered and goods issued
- BillingValue leaves the backlog when invoiced
- Sales volumeBilled value, reduced by credit memos and returns credits
Measures and dimensions
Every analytical app combines measures (numbers you add up: net value, quantity, number of documents) with dimensions (ways to slice: sold-to party, product, product group, sales organization, distribution channel, sales employee, period). In a flexible analysis app you drag dimensions into rows and columns, filter, and switch between table and chart. A good analysis states its measure, its dimensions and its filters, so someone else can reproduce it.
| Dimension | Why sales managers use it | Watch out for |
|---|---|---|
| Sold-to party | Customer ranking and concentration | Ship-to and payer may differ from the sold-to |
| Product / product group | Mix and margin focus | Product group must be maintained in master data |
| Sales organization / channel | Organizational performance | User authorizations restrict what is visible |
| Sales employee | Individual performance | Depends on partner determination filling the field |
| Period (month, quarter) | Trends and seasonality | Which date drives the period: creation, requested delivery or billing? |
Common dimensions in sales analytics.
Currencies and display
Contoso sells in USD, but a group with Canadian or European sales organizations will have orders in several currencies. Analytical apps convert to a display currency using exchange rates, often at a defined date. Two reports can show different totals for the same orders if they convert at different dates or rate types. When comparing figures, always check the currency and the conversion basis.
- Apr 3Order enteredIncoming orders +$10,000 in April
- Apr 3 to May 12WaitingBacklog includes $10,000
- May 12Goods issueStill in backlog if the measure is "not yet billed"
- May 13InvoiceSales volume +$10,000 in May; backlog −$10,000
- Jun 2Partial creditSales volume −$500 in June
Rejected items, cancelled invoices and returns all change these measures. An order item with a reason for rejection usually drops out of the backlog; a cancelled invoice reverses sales volume; a returns credit reduces it. Ask, for each app you rely on, how these cases are treated, and write the answer down. That one-page definition sheet will settle most "the numbers are wrong" arguments before they start.
What would you do?
Dan reports that Q2 "sales" in the management overview is $2.4M, but finance's revenue for Q2 is $2.1M. Both teams are certain they are right. What is the most likely explanation?
- Incoming orders use order value by creation date; sales volume uses billed value by billing date; backlog is ordered but not yet billed.
- Incoming orders minus sales volume roughly equals the change in backlog, after rejections and credits.
- Every analysis combines measures with dimensions and filters; state all three.
- Check the display currency and conversion basis before comparing figures.
- Targets and plans are data in their own right; missing plans make KPIs meaningless.
Check your understanding · not graded
Lesson check
1. Which document drives sales volume?
2. What is the backlog?
3. Which date usually assigns an incoming order to a period?
4. Why can two reports show different totals for the same orders in a multi-currency group?