Order to Cash Cycle
The Life Cycle of the Order
Following are the steps the process will go through from creating a Sales Order to Posting the details in GL.
· Enter the Sales Order
· Book the Sales Order
· Launch Pick Release
· Ship Confirm
· Create Invoice
· Create the Receipts either manually or using Auto Lockbox ( In this article we will concentrate on Manual creation)
· Transfer to General Ledger
· Journal Import
· Posting
Applications Involved
Order Management: Creating and shipping the Order
Customer Master for customer details in OM
Inventory: Onhand availability, Reservation
Pricing for List Price details in OM line
Receivables: For Receipt against invoice
General Ledger: Importing, entering and posting the journals.
Order Management Processes:
Orders can be created in following processes
1. Enter Order manually
2. Copy and Order or Return
3. Import Orders from CRM or other legacy systems
Note: CRM (Customer Relationship Management) includes iServe, iStore, Teleservices, Telesales, Sales Online, iSupport.
Scheduling Process:
1. Checking Available to Promise (ATP)
2. Placing Demand
3. Reserving Onhand
4. Running Pick Release
5. Shipping the Order
Pricing Process:
1. Order line entered, take the part and customer details from Order
2. Check price list or agreement
3. Check for the modifiers
4. Calculates the unit price
Shipping Process:
1. Run Pick Release creates Move Order
2. As per the Move Order details, parts moved out of the Subinventory (Transact Move Order)
3. After getting the part from Subinventory, it will be dropped to Staging area (Pick Confirm, this runs automatically during Pick Release)
4. After loading the goods into the Truck from Staging area, Ship Confirm can be run
5. This ship confirm will decrement quantity from Inventory and update the sales order
6. The information can be transferred to Receivables through AutoInvoice program and will generate the invoice for customer.
AutoInvoice Process:
1. Transaction data can be transferred from a number of locations like Order Management, Contracts and Legacy Systems
2. Data are brought to the Interface table, if any error, that will move to Interface exception table and after correction, again will be brought to the interface table
3. Correct data gets inserted to the Receivables by AutoInvoice program. This can be related to Debit Memos, Memos and as Invoices
Receivable Process:
1. Imported Invoices and manually generated invoices
2. Review and correct data
3. Print Invoices
4. Send Invoices
5. Collect Payement
6. Post Receipts
Cash Management Process:
1. Receive Bank Statements
2. Load and verify bank statements
3. Perform Reconciliations
4. Review Results
5. Enter Manual Entries if needed
6. Post to General Ledger
