SAP Order-to-Cash (O2C) — Capstone Project

Harsh Lal | Roll No: 23053211 | KIIT | Batch 2023–2027

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Project Overview

This capstone project documents the complete Order-to-Cash (O2C) business process in SAP SD (Sales & Distribution) module for a fictitious Indian manufacturing company — KIIT Enterprises Pvt. Ltd.

The O2C cycle is one of the most critical and widely implemented SAP processes across FMCG, manufacturing, pharma, and retail sectors in India.

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Fictitious Company

Parameter	Value
Company Name	KIIT Enterprises Pvt. Ltd.
Company Code	KIIT
Country	India
Currency	INR
Sales Org	SO01
Plant	PL01 — Bhubaneswar
Customer	CUST001 — Reliance Industries Ltd.
Material	MAT001 — Industrial Pump

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O2C Process Flow

Customer Inquiry (VA11)
        ↓
Quotation (VA21)
        ↓
Sales Order (VA01)
        ↓
Outbound Delivery (VL01N)
        ↓
Billing / Invoice (VF01)
        ↓
Payment Receipt (F-28)

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SAP Transaction Codes Used

Step	T-Code	Description
1	VA11	Create Customer Inquiry
2	VA21	Create Quotation
3	VA01	Create Sales Order
4	VL01N	Create Outbound Delivery
5	VL02N	Post Goods Issue
6	VF01	Create Billing Document
7	VF02	Release Billing to Accounting
8	F-28	Post Incoming Payment
9	FBL5N	Customer Line Item Report
10	VF05	Billing Document List

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SAP Modules Covered

• SAP SD — Sales & Distribution (core module)
• SAP MM — Materials Management (inventory/goods issue)
• SAP FI — Financial Accounting (AR, payments, GL entries)
• SAP CO — Controlling (COGS, profitability)

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Key Accounting Entries

Event	Debit	Credit
Goods Issue (PGI)	COGS Account	Inventory Account
Billing (Invoice)	Accounts Receivable	Revenue Account
Payment Receipt	Bank Account	Accounts Receivable

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Project Files

SAP_O2C_Project/
├── README.md                          ← This file
├── SAP_O2C_Capstone_Harsh_Lal.pdf    ← Full project report (submit this)
├── O2C_Process_Steps.md              ← Detailed step-by-step documentation
└── Company_Configuration.md          ← Company setup details

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Future Improvements

1. Credit Management (FD32) configuration
2. Output determination for automatic document emailing
3. GST e-invoicing integration (IRP API)
4. SAP S/4HANA migration
5. Batch management for material traceability

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Submission Details

• Program: SAP Functional Consultant
• Institution: Kalinga Institute of Industrial Technology (KIIT)
• Deadline: April 21, 2026
• Submitted by: Harsh Lal (23053211)