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Order to receipt concept(OTR)

Former Member
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Hi SD experts,

Pls explain me following concepts with examples

1) Order to receipt concept

2)Order to Cash

3)Return material authroization(RMA)

Points will be rewarded.

thanks & regards,


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Answers (1)

Answers (1)

Former Member
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Order to receipt I dont have much idea. but you can find below remaining details

Hi Shabnum,

Order to Cash : h6 company sells goods to a customer. when he order for goods, the company sells the goods to the customer. When once they are avaailable with the company, they will deliver the goods to the customer and when they are delivered , we have to bill the customer, that is done in invoice. when once the invoice is raised, the customer sends us the amount as per the invoice , we receive the cash. this is called order to cash.

RMA : h6. is return material Authorization number.

Whenever a return request is created, this number is provided to the customer to get the goods inside.

This number is a combination of transaction number and item number.

An action definition is available in standard to generate the same.

if you give me brief i can help you out more.

Thank you .