Sales Process in SAP

This Sales process in SAP is part of order to cash cycle which starts with pre-sales activity. It involves sales order from customers and ends with receiving the payment from customers.
This whole cycle in SAP is handled through SAP “Sales and distribution”, “Inventory Management” and “Finance and Controlling” SAP FICO.
Customer from
The following activities are involved in O2C cycles.
  1. No Accounting Entries
    • Sales or Customer Inquiry
    • Quotation for Customer Inquiry
    • Sales Order Creation
  2. Account Entries
    • Delivery (transaction: VL01n)
    • Post Goods Issue (PGI) (transaction: VL01N)
    • Billing (Tax Invoice and Sales Invoice) (transaction: VF01)
    • Cash Receipts / Customer Payment (transaction: FB50)
In a regular business, the first two steps, that is Inquiry and Quotation, may or may not happen.
The below mentioned steps are involved for this whole O2C cycle.
  1. Customer Inquiry– A request for information by customer is raised which can be termed as Sales inquiry as per their need. 
T code: VA11
  1. Sales Order – Customer place a PO which becomes Sales Order for Organization.
T- Code: VA01 (Create Sales order)


  1. Delivery: Delivery follows Post Goods Issue (PGI) step. It is the actual fulfillment of goods to the customer shipping address.
At this step FI-SD integration will come into picture and stocks will be Credit and COGS account will be debited.


  1. Post Goods Issue(PGI)- In this step goods are being picked from warehouse, packed and shipped to the customer’s given shipping address as per the sales order.
  2. Invoice – The customer account is debited with the amount of invoice after the invoice is raised.
At this step again FI-SD integration will take care of the accounting document. Revenue accounts will be credited, and customer will be debited
T code: VF01.



  1. Receipt of Money – The final stage is realization of cash after invoice is raised and accepted by customers
Order to cash cycle (O2C)


Important T codes of O2C cycles are as below:

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