Order-to-Cash: How SD Hands Off to FI (PGI, Billing, Payment Clearing) | SAP Concepts Ep 5

Episode 5 of SAP Concepts. Eight minutes on the full order-to-cash cycle in S/4HANA — how a sales order becomes a delivery, a goods issue, an invoice, and a paid receivable, and how SD talks to FI at every step. No transaction codes to memorise. No ABAP. Just the mental model that holds together every sales, AR, and revenue conversation in SAP. Four realistic Fiori-style screens walk through each stage: Create Sales Order with ATP and credit check, Post Goods Issue with auto-journal, Billing Document with revenue recognition, and Post Incoming Payment with auto-match clearing. What You'll Learn: - The five documents of order-to-cash — SO, Delivery, PGI, Billing, Payment — and who owns each. - The three gates before a sales order saves — credit check, ATP, pricing. - Why the sales order itself touches only CO, not FI. - How Post Goods Issue (movement 601) auto-posts COGS and reduces inventory. - How billing releases to accounting — Dr Customer A/R, Cr Revenue, Cr Output VAT. - How incoming payments auto-match open items against the bank statement. - A/R aging buckets and the weekly dunning run (F150). - The three FI journals that make up one complete sale — and how Customer A/R opens and closes. Timestamps: 0:00 - Intro 0:15 - What's in this episode 0:35 - The O2C loop — five documents 1:25 - Sales order — credit, ATP, pricing 2:20 - Delivery and Post Goods Issue 3:20 - Billing and revenue recognition 4:25 - Incoming payment and clearing 5:20 - A/R aging and dunning 6:10 - End-to-end — three journals stacked 7:00 - Recap — five points to remember 7:50 - What's next: Episode 6 — Plan-to-Produce Key Takeaways: 1. Every external sale in SAP flows through five documents — SO, Delivery, PGI, Billing, Payment. 2. A sales order is a promise from the customer — credit and ATP must pass before it saves. No FI posting yet. 3. Post Goods Issue auto-posts COGS and reduces inventory — the cost side fires before revenue. 4. Billing is where revenue is recognised — Dr Customer A/R, Cr Revenue, Cr Output VAT. Margin becomes visible. 5. Incoming payments auto-match against open items. Customer A/R opens with billing and closes with payment. Next in the series: Episode 6 — Plan-to-Produce. The manufacturing side. Bills of material, production orders, confirmations, and how PP hands off to MM and FI. Taught by CelesteAI. Like and subscribe for the rest of the series. #sap #s4hana #ordertocash #o2c #sapsd #sapfi #revenuerecognition #pgi #billing #sapconcepts #fiori #saptutorial #learnsap #sapforbeginners #saptraining