To make order-to-cash processing effective, you must connect all related activities to

customer demand by using a series of integrated processes. The Sales and Distribution
application component in the SAP system helps you achieve effective processing. The steps in
the order-to-cash process are then reproduced by electronic documents that are linked to each
other.
The order-to-cash process begins by establishing and maintaining customer relationships. The
process ends by completing invoices for the delivery of goods or services to the customer.
Posting incoming payments from the customer is part of the Financial Accounting application
component.
The customer order management cycle begins with presales activities. For example, you
create and send a quotation in response to a customer inquiry.
As part of order-to-cash processing, you create a sales order, for example, with reference to
the quotation.
During procurement, the system identifies a supplier of the goods, based on data you stored
in the system. The system checks whether the supplier is from one of your delivering plants
or whether the supplier is a third-party vendor.
You organize and deliver the goods as part of shipping processing.

Organizational levels represent the structure of an enterprise organization. They

also represent the legal and organizational views of an enterprise. The order-tocash process is part of the Sales and Distribution (SD) application component.
A sales and distribution component module includes organizational levels that
are unique to the sales and distribution processes, such as sales organization,
distribution channel, division, and shipping point. It also includes organizational
levels, such as company code or plant, which are used in SD and in other
modules.
You can represent your enterprise structure using organizational levels based
on your business processes.