Sales process/Order to cash (O2C)

What does SAP stand for?

Systems, Applications, and Products in Data Processing .

What is SAP's core focus?

It is a German software company focusing on Enterprise Resource Planning (ERP) systems.

Definition of ERP

Software that integrates various business processes in real-time.

"Real-time, Real difference"

SAP’s slogan reflecting that as raw materials arrive, inventory and finance (assets/liabilities) update simultaneously .

Pre-ERP vs. With ERP

Before: separate, paper-based, duplicated activities. With: automatic, real-time, up-to-date operations

Streamlined Processes

SAP streamlines forecasting, inventory management, and production .

Core Functions Supported

Forecasting, Procurement, Production Planning, Finance, Customer Management, Distribution, and Purchasing .

SAP Market Dominance

SAP customers generate 87% of global commerce ($46 trillion); 99 of the 100 largest companies use it .

Single Source of Truth

One source of information that is easier to update, protect, and manage to see the company state.

Common SAP Processes

Order-to-Cash (O2C), Procure-to-Pay (P2P), Record-to-Report (R2R), and Hire-to-Retire (H2R) .

What are the core collection process?

1.      Receive order for goods or services

2.      Check inventory and prepare goods

3.      Deliver goods or services to customer

4.      Maintain customer records and credit information

5.      Send invoice to customer

6.      Collect payment and post to accounts

7.      Handle returns and forecast future sales

What are the 4 main objectives and activities

1. sales order entry

2. shipping - determine delivery method

3. cash collection

4. billion/ A.R. - invoicing/maintaining customer accounts