SAP SD Training – Order to Cash Cycle ( OTC Cycle ) – Jan 2011 Batch

The exercise on SAP Order to Cash Flow is based on the following slideshow. You should have completed the following SAP SD Training sessions in order to answer this exercise. For other SAP Training areas, please visit our Magna Training home page.

  1. SAP GUI Navigation


The following questions are based on the examples ( Bestbuy and Apple ) taught in the class. The names of these companies are purely used for illustration purposes only and the SAP SD Training tutor or Magna Training are not related in any way to these companies. The are only used to give the students a feel for some real time SAP SD Training scenarios.

  1. Bestbuy wants to buy 10,000 newly released version of iPods from Apple Inc, California. Bestbuy is currently not aware of the price or availability. What should Bestbuy do now ?
  2. Bestbuy is aware that there are many resellers that sell iPods to them ( Apart from the parent company Apple Inc ). Bestbuy would already be inquiring with all these resellers ( Say Reseller A , B and C ). Assuming the reseller A had the best price, Best buy now wants to get a formal quotation from Reseller A. What should Bestbuy do now ?
  3. Assuming Reseller A uses SAP , create an inquiring in the system ( Related to Question No. 1 ) for Customer No. 1400 , for material M-01 with quantity 10,000 ( Assuming Best buy is Customer No. 1400 and iPods are M-01 )
  4. Create a quotation referring to the inquiry created in Question No. 3 ?
  5. Let’s assume Bestbuy liked the quotation’s terms and wish to buy the iPods from Reseller A. Reseller A will now convert the quotation to a sales order . Do the same and specify the order number.
  6. Deliver the Sales Order created in Question No. 5 above and specify the delivery number.
  7. Bill the Delivery created in Question No. 6 above and specify the billing document number.
  8. iPods are flying fast off the shelves and Apple Inc is not able to keep up with the speed. Bestbuy being a smart company, wants to enter into a contract with Reseller A to lock down the price and to ensure that it’s supplies are full for 6 months of demand for a quantity of 200,000 iPods. This will make sure that Bestbuy can anytime for the next 6 months demand the iPods ( until a quantity of 200,000 ). Which kind of document should be created in the system now ?
  9. Create a contract ( with a validity of 6 months ) for material M-01 with a quantity of 200,000 for customer 1400. Specify the SAP contract #
  10. It is January now and Best buy wants 40,000 of the iPods delivered from Reseller A ( referring to the contract created in step No. 9 above ) . Create a release order for 40,000 referring to the contract. Specify the SAP Release Order # ?
  11. It is February now and best buy now wants another 50,000 ipods delivered. Create another release order referring to the same contract #. Specify the SAP Release Order # ?
  12. Apple is having trouble keeping up with the demand for the newly released iPods. On the manufacturing side, Samsung the manufacturer is having difficulty keeping up with the demand for the A4 Processor used in iPods. Apple’s marketing team does some market research and based on previous rush for iPods estimates that they will require to make 3 million iPods in January. To ensure that Samsung will be able to keep up with the demand, Apple will let Samsung know that they will require 3 million A4 Processors in the month of January. However Apple will not require all the iPods on Jan 1st. Assuming they require 100,000 Processors a day, Apple will direct Samsung to deliver 700,000 A4 Processors to be delivered every week for 4 weeks in January.
  13. As discussed in the class, which type of document will you need to create ?
  14. Does this type of document require you create ‘Release Orders’ ? If not, how will the deliveries be created every week ?
  15. On the Sales side, let’s say Apple now needs to deliver 10,000 iPods for an order # 1234 to Reseller A. Apple has a warehouse in the Bay Area . The folks at the warehouse go pick up the goods from the exact location and put them in the staging area. What is this logistics process called in SAP ?
  16. After placing the goods in the staging area, the iPods should go through the process of ___________ before they can be on the truck. What is the Process ?
  17. The processing of placing the goods in the truck/freight train is called __________
  18. After loading the goods, the accounting process that fully completes the delivery is called ___________

For information on other SAP Training modules, please visit our home page Magna Training.  If you need access to an SAP IDES Server to practice ( if you are learning on your own ) , please visit our SAP Access preferred vendor , Fuze Server .

19 thoughts on “SAP SD Training – Order to Cash Cycle ( OTC Cycle ) – Jan 2011 Batch

  1. Shivkumar says:


    Ans 1. Bestbuy will need to send an

    inquiry relating to the availability of

    and the price for 10000 units of the

    latest iPods.

    Ans 2. Bestbuy will send a Request for

    Quotation to the Reseller A.

    Ans 3. Inquiry number: 10000036 created.

    Ans 4. Quotation number: 20000114 created.

    Ans 5. Order Number: 13210

    Ans 6. Cannot create an outbound delivery

    as error states No schedule lines due for

    delivery upto the selected date.

    Ans 7. Dependent on 6.

    Ans 8. A contract should be created.

    Ans 9. Contract Number:40000213

    Ans 10. Order Number: 13211

    Ans 11. Order Number: 13212

    Ans 12.

    Ans 13.

    Ans 14. By creating a Goods receipt


    Ans 15. Picking process.

    Ans 16. Packing.

    Ans 17. Goods Issue.

    Ans 18. Billing.


      • Magna Training says:


        Q.14 – In this scenario, a ‘Scheduling Agreement’ is created in SAP. There are differences between Contracts and scheduling Agreements. Apart from the functional differences, in SAP, deliveries cannot be created straight out of a contract. A release order has to be created. In case of scheduling agreement, deliveries can be created directly with reference to them. Once again, lets discuss this in the class.
        Q.17 – The process of loading the goods in the truck/train/ship etc is called “Loading” in SAP.
        The answer to Q.18 is PGI ( Also called Post Goods Issue ). Let’s discuss this in the class if required.


  2. Vikas Jain says:

    Hi Sir,

    Here are my answers:

    1. Bestbuy should send inquiry for ipods to Apple Inc.i.e. RFI

    2. Bestbuy should ask for quotation i.e. RFQ

    3. Created inquiry 10000039

    4. Created Quotation: 20000116

    5. Sales order created: 13215

    6. Not able to create delivery

    7. Don’t Know

    8. A Contract should be created

    9., 10., 11. I dont know which “Contract Type” should be selected.

    12, 13. Scheduling Agreement

    14. No, in a scheduling agreement its mentioned that when the goods are to be delivered.



    17.Post Goods Issue



  3. Roji says:

    1. RFI
    2. RFQ
    3. Inquiry# 10000029
    4. Quote# 20000104
    5. Order# 13179
    6. Delivery# 80015945
    7. Error – No billing documents were generated. See log (nothing appears in log)
    8. Contract –USER QC FOR CONTRACT
    9. Contract# 40000215
    10. Order# 14003
    11. Order# 14004
    12. Nothing Needed
    13. Scheduling agreement
    14. No, automatically, the rules were set in the scheduling agreement
    15. Picking
    16. Packing
    17. Loading
    18. Post Goods Issue or Billing


    • Magna Training says:

      Good job Roji. Keep doing the same going forward. Based on the answers, I see that you have really understood the concept well. Here are some answers to the ones you had trouble with.

      7. The billing is not completed because, the PGI is not done for the delivery. How did I find it out..? I went to the error log during billing creation

      From there, I found out that the previous delivery 80015945 that you have created has not been PGIed..

      SAP training


  4. Jeny Koshy says:

    1) RFI

    2) RFQ

    3) Inquiry: 10000053

    4) QT: 2000142

    5) OR: 16251

    6) Delivery: error order cannot be delivered

    7) can’t create

    8) contract: QC: 40000239

    9) to continue


  5. Jeny Koshy says:

    8) We should create a contract.

    9) QC: 40000239

    10) order: 16257

    11) Nothing is needed

    12) Scheduling Agreement

    13) Scheduling Agreement

    14) creating good receipt

    15) Picking

    16) Packing

    17) Goods Issue


    I did till answer 8 yesterday, Thank you.


  6. Sriram says:

    Hi Siva,

    i am stuck in the question number 6. I created the order and delivery under 16400 and 80016107 respectivey. When I tried to issue PGI, I got a weird message that “Posting only possible in periods 2011/04 and 2011/03 in company code 1000” error code is M7053.

    I went to material master to change the possible periods for material m-01 in “plant stock” tab, but i was unable to change the dates.

    Can you pls solve this error?


  7. Sriram says:

    Question 10 or J:
    I have created a Sales order 16403 referring the contract 40000247, but not able to deliver. An error “Material M-01 does not exist in warehouse 012” pl help.


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