O2C Cycle

The O2C Cycle or Order to Cash process flow starts from entering an order with a standard good into the system. When you enter an order, the item is validated in inventory phase, the price is calculated for the purchased items using the pricing engine, also the availability of the items are checked and are reserved. Once all the required fields are entered on the header and the lines, you can book the order. When you click on the book order button, it checks if the order is eligible for booking or not. If eligible the order is booked and the header status changes to booked.

O2C Cycle

The next step is the pick release with which you move the goods from the sub-inventory to the staging area. The next step is to confirmation of shipment, to indicate that the items are loaded onto the carrier from the staging area. When you run Ship Confirm, the system decrements inventory and update sales order line status. This information is then transferred through the Auto Invoice to Account Receivables for invoicing. Then you can send the invoice to your customer for the items shipped and then perform the cash management and bank reconciliations.

In O2C Cycle  Order Management department receives the detailed information from the inventory application and price list information from the pricing application. Orders and returns can be entered manually or imported throughout an external source. Once in the system, the order is ready to be pick release and shipped if needed by the shipping application. It can then proceed through the Auto Invoice program for the account receivables application to be invoiced. All of the accounting information is transferred to the general ledger by the Inventory and account receivables applications.

In O2C Cycle the required fields to enter on the purchase order header are the customer name, number and order type which is generated based on the order type. Other values such as Ship-To Address, Bill-To Address, Shipping Method, and Price List default. The fields required to enter on the sales order lines are purchased Item and quantity. Again, based on defaulting rules and setups in pricing, shipping, and inventory, the other values would default on the purchase order line.

 

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