The Order to Cash flow

• A customer orders some items from your company by creating a sales order
• Your company decides to deliver the items ordered by the customer.
• This is recorded by creating a outbound delivery document
• Once the items are available for sending to the customer, you post goods issue which reduces your inventory and puts the delivery in transit. This will create a material document.
• You will post goods but the material document created will be stored in tables.
• You will then create shipment document to actually ship the items.
• You finally create a sales billing document.
• This will have a corresponding accounting document created that will be in different tables.
• When customer pays to your invoice, it will directly hit your AR account in FI.