Impact of Different Sales Order Transaction Types on Receivables

Sales Order Transaction Types represent different business flows in the organization. There can be various flows which can interface to AR and which might not. The workflow that is attached to the transaction type will decide this factor.

For example, there can be a flow which is just a SHIP but NOT to BILL which can be used in case of sending the License documents for the software etc.

We use different SO order types to represent different Flows. We may have ship only flow and bill only flow and also we may have Standard flow.

Bill only and standard flows will flow to AR and create invoices.

The order type decides the accounting transaction in AR. For example, we have Transaction Type in the Finance tab on the define order type window where we attach the AR transaction type to SO order type. We have the COGS account in it.

It also affects the tax calculations we have the choice Tax event - Entering or Booking.

All these details flow to AR to impact Invoicing.