Order to cash


Order to cash

"Order to cash" (O2C or OTC) normally refers to the business process for receiving and processing customer sales. It follows "Opportunity to Order" and covers business-to-business (B2B) and business-to-consumer (B2C) sales. The term is most prominent in the design and improvement of Enterprise Resource Planning (ERP) systems such as SAP and some Oracle.

In many business models a contractual relationship is established first via a Contract or Subscription. Orders are then received via different sales channels, such as phone, email, internet, sales person, EDI or fax. The contractual relationship is confirmed and the Orders are fulfilled through shipping and logistics. On completion of key events an invoice is generated and booked as Sales (subject to "Revenue Recognition" requirements). If payment has not already been received, the debt is recorded and pursued through Dunning cycles until the funds are received. Order to Cash is completed by the Customer Care process (enquiries, requests and complaints).

If we consider the ERP system flow, this is typically categorized into the following seven sub-processes:

  • Customer presence
  • Order entry (creation of order/booking of order )
  • Order fulfillment (physical & digital fulfillment)
  • Distribution
  • Invoicing
  • Customer payments/collection
  • Cash Application
  • Deductions (If invoice Short Paid by Customer)

Wikimedia Foundation. 2010.

Look at other dictionaries:

  • Order to cash — Dieser Artikel wurde aufgrund inhaltlicher und/oder formaler Mängel auf der Qualitätssicherungsseite des Portals Wirtschaft eingetragen. Du kannst helfen, indem Du die dort genannten Mängel beseitigst oder Dich an der Diskussion beteiligst. Unter …   Deutsch Wikipedia

  • cash — ► NOUN 1) money in coins or notes. 2) money as an available resource: he was always short of cash. ► VERB 1) give or obtain notes or coins for (a cheque or money order). 2) (cash in) convert (an insurance policy, savings account, etc.) into money …   English terms dictionary

  • Order (business) — In business or commerce, an order is a stated intention, either spoken or written, to engage in a commercial transaction for specific products or services. From a buyer s point of view it expresses the intention to buy and is called a purchase… …   Wikipedia

  • cash — cash1 noun money in coins or notes. ↘money in any form as an available resource. verb 1》 give or obtain notes or coins for (a cheque or money order). 2》 (cash something in or N. Amer. cash out) convert an insurance policy, savings account, etc.… …   English new terms dictionary

  • cash with order — ˌcash with ˈorder abbreviation cwo adjective, adverb COMMERCE TRANSPORT if something is sold on a cash with order basis, payment must be sent with the order, before the goods are sent out: • Be wary of paying cash with order unless you know the… …   Financial and business terms

  • Cash for Honours — (also Cash for Peerages, Loans for Honours or Loans for Peerages) is the name given by some in the media to a political scandal in the United Kingdom in 2006 and 2007 concerning the connection between political donations and the award of life… …   Wikipedia

  • cash — cash1 [kash] n. [MFr casse < OFr < OIt cassa < L capsa: see CASE2] 1. money that a person actually has, including money on deposit; esp., ready money 2. bills and coins; currency 3. money or its equivalent, as a check or money order,… …   English World dictionary

  • Cash Explosion — later known as Cash Explosion Double Play , is an official Ohio Lottery TV game show, which originated in Cleveland and was broadcasted on television stations throughout Ohio. The show is now taped by Mills James Productions in Columbus, Ohio. I …   Wikipedia

  • cash conversion — ˈcash conˌversion noun [uncountable] MANUFACTURING the process in which a company uses materials that it buys in order to make money from the sale of finished goods: • The cash conversion cycle is the number of days it takes a company to purchase …   Financial and business terms

  • cash surrender value — cash sur·ren·der value n: the amount of money an insurer will pay the insured upon surrender of a life insurance policy usu. calculated as the reserve held by the insurer against the policy less a charge for surrender and any outstanding… …   Law dictionary