Order-to-Cash (O2C)
SalesDefinition
Order-to-Cash (O2C) is a core business process that captures the entirety of the customer order fulfillment journey, from order placement to payment collection.
Detailed Description
Order-to-Cash (O2C) is a fundamental part of the sales and business cycle within organizations. It encompasses all the steps from the moment a customer order is received, through the completion of the service or delivery of goods, to the final invoicing and payment receipt. This process involves a series of coordinated tasks including order management, revenue recognition, invoicing, accounts receivable, and payment processing. A well-optimized O2C process can significantly enhance customer satisfaction by ensuring timely and accurate order fulfillment and boosting the business's cash flow efficiency.
Key Features
- Accounts receivable management
- Customer communication and support
- Invoice creation and handling
- Order management and processing
- Payment processing and reconciliation
- Revenue recognition
Common Modules
Accounts Receivable
Manages outstanding invoices and ensures efficient collection of payments.
Billing and Invoicing
Facilitates the generation and dispatch of accurate invoices to clients.
Sales Order Management
Handles the creation, tracking, and management of sales orders throughout the lifecycle.
Popular Implementations
Oracle Order-to-Cash Cloud
Oracle offers a comprehensive O2C solution in the cloud, providing end-to-end visibility and control over the sales lifecycle.
SAP Order-to-Cash Implementation
SAP's O2C process streamlines sales operations and improves cash flow management through integrated functionalities across modules.