OTC Process

O2C process nothing but Order To Cash Process.

Many organization having O2C, P2P (Procurement To Pay), Q2C (Quotation to Cash)etc..
O2C starts from Inquiry or Quotation or from Order depend upon companies business process.

Normally 1) O2C is In- Quotation-sales Order-Delivery-TOR (Transfer Of Requirement pass to MRP

to create demand) Packing- Picking-Route Determination-PGI-Transportation-Invoice generation (it
could be normal invoice & Excise invoice)-Payment Collection.
2) If goods are spoiled/break/not delivery on time to customer or any other reason, he will return
material to business for that business creates return delivery.
3) If customer wants replacement- once material is get return business create Susequent free of
charge goods sales document with reference to Return order and deliver the same.
4)If customer wants money back- then business creates credit memo request with reference to
return order and create credit memo invoice.
5)If business wrongly quoted price/quantity business will create debit memo request to adjust
accounting entries

Order to cash (OTC or O2C) is a set of business processes that involve receiving and fulfilling
customer requests for goods or services.

An order to cash cycle consists of multiple sub-processes including:

•Customer order is documented

•Order is fulfilled or service is scheduled
•Order is shipped to customer or service is performed
•Invoice is created and sent to customer
•Customer sends payment /Collection
•Payment is recorded in general ledger

Difference between inbound and outbound deliveries?

Inbound delivery is basically relate to Post goods receipt where u received the goods in your plant.
Whereas the Outbound delivery is relate to Post Goods Issue where u send the goods from ur
shipping point

In addition to answer 1 above, inbound deliveries relate to goods received from vendors. Outbound
deliveries relate to Goods issued to Customers.
the movement of incoming goods from the vendor to your plant refers to inbound delivery.
the movement of outgoing goods from your plant to the customer refers to outbound delivery.
Inbound isn't mean only goods received from vendor.
Some time customer return the goods, in IPO process, STO process, in consignment pickup process
all these process are related to inbound deliveries.

Inbound means - material comes in (PGR).

Outbound means - material goes out (PGI).

document type for MIGO & MIRO

MIGO...Movement in goods out = means you can make a receipt / issues agansit Purchase order/
against movment type.
MIRO...Movement in Receipt out = means a Invoice verification

If PGI is not possible for one sales order. what are mandatory things we have to chck?
If system not allowing to do PGi for particular sales order, it means that PGI will be restricted for
certain scenarios or control parameters are define.

1) Credit check- u need to check credit which not allowing u to do PGI.

2) U need to check material confirmation during sales order, ex- check scheduline tab of sales order
document and check whether material is confirmed for particular period of time. Here u need to do
delivery on material confirmation date.
3)If delivery quantity maintained more then sales order quantity4) Account assignment/account
determination configuration missing.
In addition to above mentione dpoints , we can check in tcode "OVLP" whether relevant for picking
tab is ticked for item category.
we have to check the field which is relevent for pgi

How do you split a delivery? What are the different ways to split a delivery Explain them in
detail.
Delivery Split can happen based on the shippingpoint in the SO line item. Based on common factors
like Shipping point,Destination country,Ship to party, Inco terms and Route delivery split will happen.

he process will follow teh below steps

Inquiry ( VA11 )
Quotation ( VA21 )
Sales order ( VA01 )
create outbound delivery ( VL01N )
create transfer order ( LT03 )
confirm transfer order ( LT12 )
Shipment creation (VT01N)
Shipment cost creation (VI01)
Post goods issue delivery ( VL02N )
create Billing Doc ( VF01 )
Post billing to accounting ( VF02 )
You can start a O2C cycle from creation of sales order-> delivery-> Transfer order -> -
The order to cash is followed when a product is sold to customer directly. The process involves in
creating a inquiry for a specific product by a customer, which is followed by a quotation by many
vendors. once a comparision of quotations are done by the customer the customer selects a
particular vendor (goods suplier) to fullfill his material requirement. Later they create a value based
contract or quantity based contract (a value based contract specifies that the customer will be
suppling 10000 pc of contract within a period similarly a value based contract is like saying the
vendor will supply goods worth 1000$ with in the contract period ). release orders/Sales orders will
be created following the contracts. followed by delivery of goods. Invoce will be generated and sent
to the customer.