Order to Cash - Specified Products

Scenario:  Order to Cash - Specified Products

The Order-to-Cash (Specified Products) business scenario enables your company to produce and sell products for a specific customer demand. You can create a sales quote or sales order with a product specification that includes customer-specific requirements, plan the multilevel demand for a sales order item, and create supply for the required products. You can order and receive materials based on requirements from the customer, release the production order, and create production tasks. During task confirmation, it is ensured that only those materials that were replenished for a specific customer demand are consumed. Output products are always confirmed as specified stock. A final inspection identifies if any of the units do not conform to the customer requirements.  You can post a goods issue. The system creates an outbound delivery and the products are shipped to the customer. An invoice is created based on the outbound delivery and the system updates financial accounting.

Process Flow details Order to Cash - Specified Products

Roles involved to Order to Cash - Specified Products

• Sales/Customer/Service Representative
• Supply Manager
• Quality Manager
• Inspector
• Warehouse Manager

Business Value of Order to Cash for Specified Products

For midsize companies who sell customized or low volume products and are challenged by rising customer demands for service and value, this scenario streamlines the entire order-to-cash process. You can become more profitable by responding efficiently to customer demand based on real-time availability information thereby growing revenue while decreasing cost of sales.

SAP Business ByDesign helps efficiently manage the order-to-cash process: From order management, planning production, and warehousing through to financial settlement.

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Key benefits of Order to Cash for Specified Products

• Product specifications allow companies to easily define and maintain individual customer requirements and product variants and is fully integrated to the end-to-end business process from sales order entry through supply planning, production and procurement to outbound delivery;
• The product specification is a permanent document that can be used multiple times and thereby helps to reduce master data management effort;
• The product carrying costs are reduced as over production or returns can be identified by the system and then reused to cover new specific customer demand;
• Quality inspection is integrated with the production process;
• Management of identified stock (batches, lots) or restricted inventory;
• Automatic inventory valuation for raw materials, WIP, and finished products;
• Scalable process for revenue recognition supporting different accounting principles;
• Built in analytics enables a drill down to the profit and loss result alongside dimensions like products, customer groups and distribution channels.

Application

• SAP Business ByDesign

Continue to review the other Business Processes SAP Business ByDesign

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