Professional Documents
Culture Documents
Order To Cash
Order To Cash
Presented To:
Defination
• It refers to the steps taken in each process from the time
an order is requested until payment is made in response
to that order.
• From the time the concept of OTC emerged its usage
has predominantly been noticed in the following
industries:
• Fast moving consumer good (FMCG)
• Manufacting
• Leasing
• Service
• Apparel
Process of o2c cycle
• Sales
• Credit
• Master Data
• Oreder Management
• Billing
• Collection
• cash apps
• Deduction
Sales
• Sales is the first stage of the o2c cycle
• The otc cycle begins when the sales team identifies a
prospective customer and sends a proposal
• The sales team is the first point of contact for the
customer and therefore plays a crucial role.
• It is the job of the sales team o ensure that the
relationship with the customer is cordial and the
expectation have been set correctly.
• The key player in the sales team is the sales
representative.
Roles of sales team
• Identifying a customer : The role of the sales
representative is to try and identify customers who would
like to purchase the companies product or services.
Credit Order
Collections
Management
2. Hard block: if the account has orders that have already been block and
the customer keeps placing new orders without making payments for
the previous ones, the account is completely blocked.
. This situation is known as hard block. Under hard block, the customer is
unable to place any new orders.
Credit Team: Interlinkages
credit
Cash Order
sales collections
application management
Order
Sales Credit Collections
management
The Order
Management Team
If the Master Data
Can contacts the
The Master Data Team enters
Master Data Team
The Master Data Team contacts the payment terms
to request the
Team contacts the Credit Team to Incorrectly, the
addition or deletion
Sales Team to get obtain information Collections Team
of products for the
missing information such as credit limit gets impacted
customer in ERP.
on the customer. and payments terms. because a dispute
They can even
will happen over
request for change
the payments.
in information.
Master data Team: performance
indicator
• TAT: this refers to the time taken by the Master Data
Specialist in creating the new accounts or updating the
existing ones. Depending on the task to be performed,
the Master Data Specialist is supposed to complete it
quickly.
• Two copies are handed over to the trucker who takes the
product out of the warehouse.
• The trucker keeps one copy with him and hands over the
other copy to the customer at the time of the delivery.
• TAT: This refers to the time taken by the Order Entry CSR
is performing the usual tasks. Depending on the tasks to be
performed the Order Entry CSR is supposed to complete it
quickly.
• The key role player in the Billing Team is the Billing CSR.
Billing Team: Roles
• Generating invoice: The invoice lists the product ordered
by the customer prices of the products, and the other
important details.
Order
Collections Deductions Credit
management
The Collections
The Order Entry CSR
Team will contact
could contact the If the Cash
The Cash
The Deduction Team Cash Application Application doesn’t
ApplicationTeam to
Contacts the Cash Team to check if the apply the payment
check if the
Application team Payment has been the credit limit of
Payment has been
to find out the received. This the customer is
Received from a
details of the usually happens approached as and
Customer. This
Deductions posted when the when more orders
Check is usually
On the account. customer’s orders are placed. This
Done before
have gone on hold. brings the Credit
Placing a call
Team into action.
to the customer
Cash Application Team: performance
Indicator
• TAT: It refers to the time taken by the Cash Applicator in
applying payments to the open invoices on customers
accounts.
Damaged or Defective
Shipment Customer Issues
Material Shipped to Billing Issues
Another Location
Short Shipment Terms Discrepancy
Overshipment Pricing Discrepancy
Shipment Not Cash Flow Incorrect or Missing
Received Bankrupty Purchase Order (PO)
Refusals and Returns Payment Made to Incorrect Tax Charged
Another Company Incorrect Fright
Charged.
Invoice Not Received
Or Missing Voice
Duplicate Billing
collections Team: Interlinkages
Collections
Order
Sales Credit Cash Application
management
Collections
Deductions
Late/Early Delivery
Short shipment Promotional Discount
Freight
Refusal Special Pricing
Overshipment
Damage Return
Fine and Penalty
Pricing Discrepancy Unsaleable
Sales Tax/Tax Exempt
In case of short
In case of short
payments, the
payments, the In case of invalid
Deductions Team For valid
Deductions Team deductions, when
would research the deductions, credit
will get in touch these get paid by
case and validate should be issued
with the sales to the by the
the reason for short in the system to
resolve deduction customers, the
payment if the clear off the
or payback cash needs to be
deduction is found deductions and
related issues applied to close
invalid, it became a credits are usually
since sales interact the deduction in
collectible item for raised by OE CSR.
with the customer the system.
the Collections
in person.
Team.
Deductions Team: performance
Indicator