Order to Cash

Optimize Your OTC Process for a Streamlined and Seamless Order Management

 

What is Order to Cash?

Order to Cash (OTC or O2C) is an end-to-end business process in the SAP Enterprise Resource Planning (ERP) software that integrates finance and sales and distribution. The business process begins with the client inquiry and ends with delivery and payment made for the goods or services. It is possible to automate and expedite the entire OTC process, right from the sales order creation stage to the final product fulfillment and accounts receivable stages, with this software.

    Process Flow

    The steps in the OTC process typically include the following:

  • Pre-sales activities
  • Order processing
  • Order fulfillment
  • Billing

The first step, the pre-sales stage, in the OTC process occurs before a sales deal has taken place. This stage includes customer contact, inquiry, quotations, contract, and scheduling agreements. The OTC process starts with an inquiry from an existing customer or a new customer for a product. The customer is then offered a quote for the quantity that they need and places an order.

The second step, order processing, happens within the company and includes the activities that are necessary to fulfill the customer’s order, such as determining whether the order can be fulfilled using inventory that already exists, i.e., available stock, or determining whether it is necessary to reach out to suppliers or manufacturers to place an order for new goods.

The third stage, order fulfillment, begins when the order has been finalized and is ready to be shipped to the client. This stage involves the packaging of the goods, transportation planning, and actual dispatch of goods from the warehouse.

The final stage, billing, concludes the OTC process and involves the creation of an invoice. The client can either pay after the goods have been delivered or can make an advance payment before the shipment.

Benefits

Minimize the amount of time and effort spent on checking orders, general administration, and running receivables

Streamline the overall process which results in a lower rate of late shipments

Maintain the entire sales order cycle including pre- and post-sales activities using one integrated system

Use real-time insights on pricing, contracts, products, clients, and delivery

Automate the billing process in the entire OTC process – right from credit checks to account receivables

 
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