At which steps in the order-to-cash process are postings made to the general ledger (G/L)?

Order-to-Cash Process:This process involves several steps from order receipt to cash collection, with certain steps resulting in financial transactions that impact the general ledger.

Steps with G/L Postings:

B. Posting a Goods Issue:When goods are issued against a sales order (e.g., from inventory to fulfill the order), it results in a decrease in inventory and an increase in cost of goods sold, which are recorded in the G/L.

C. Saving an Invoice:Upon billing the customer, revenue and accounts receivable transactions are posted to the G/L, reflecting the sales transaction's financial impact.

Implementation in SAP S/4HANA:In the SAP Sales and Distribution (SD) and Financial Accounting (FI) modules, goods issue and invoice saving are key steps that trigger automatic postings to the G/L, reflecting the financial transactions associated with the order-to-cash process.

References:

SAP Financial Accounting Configuration Guide

SAP Sales and Distribution (SD) Guide