SAP S/4HANA
What is Order to Cash (O2C)?
The end-to-end sales process from customer order through delivery, billing, and cash application.
In SAP this spans SD (sales order, delivery, billing), logistics execution, and FI-AR (receivables and incoming payments), plus credit management. It is one of the most heavily tested processes in any rollout. Variants include returns, credit memos, rebates, and intercompany sales.
Related terms
Sales Order
An SD document recording a customer's request for goods or services with quantities, prices, and dates.
Outbound Delivery
A shipping document that triggers picking, packing, and goods issue for goods leaving a plant.
Billing Document
An SD document such as an invoice, credit memo, or debit memo that posts receivables and revenue to FI.
Accounts Receivable
The FI sub-ledger that manages customer invoices, open items, incoming payments, and dunning.
Credit Management
S/4HANA SAP Credit Management for setting customer credit limits, scoring risk, and blocking risky sales documents.
End-to-End Process
A cross-module business process such as order-to-cash that runs from trigger to financial outcome.
More in SAP S/4HANA
Planning an S/4HANA move?
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