At which steps in the order-to-cash process are postings made to the general ledger (G/L)? Note: There are 2 correct answers to this question

Question

Options

• ACreating a sales order
• BPosting a goods issue
• CSaving an invoice
• DCreating an outbound delivery

• A
  8% (3)
• B
  83% (33)
• D
  10% (4)

Explanation

In SAP's order-to-cash cycle, G/L postings occur only when a financial or inventory value change takes place. Posting a goods issue (B) triggers an accounting document that credits inventory and debits cost of goods sold, reflecting the physical movement of stock out of the warehouse. Saving an invoice (C) creates a billing document that posts to accounting by debiting accounts receivable and crediting revenue.

Creating a sales order (A) is a purely commercial document - it records intent to sell but has no immediate financial impact, so no G/L entry is generated. Creating an outbound delivery (D) is a logistics document that stages the goods for shipment; the G/L posting only occurs later when the goods issue is posted from that delivery, not when the delivery itself is created.

Memory tip: Think "value changes = postings." Ask yourself, "Has money moved or has inventory value changed?" - Goods Issue says "stock left" (inventory value drops), and Invoice says "customer owes us" (revenue recognized). Order and delivery are just paperwork steps in between.

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