Order to Cash Process or O2C Process

Order to Cash is a process, which starts from an order & complete at Payment receive. So that’s why it’s called Order to Cash Process.

We have following Steps in O2C Process as under:-

 Inquiry from Customer or Request for Quotation
 Quotation Submission to Customer
 Receive Purchase Order (Additional)
 Issue a Sales Order
 Packing of Material
 Shipping or delivery of Goods
 Billing or Invoicing
 Payment Collection
 Customer Evaluation and Reporting

Now we will discuss all the steps one by one

Inquiry from Customer or Request for Quotation

O2C cycle start from inquiry, in this step we receive inquiry from customer for any materials/services in which we deal. This is the first step in O2C Cycle. Generally customer asks for Quotation first.

Quotation Submission to Customer

On the Basis of inquiry we will submit a quotation to customer

Receive Purchase Order

If Our customer select our organization, on the Basis of our Quotation. Customer will issue a Purchase Order or we can say we will receive a Purchase Order from our customer

Issue a Sales Order

After receipt of Purchase Order from Customer we issue a Sales Order to Customer

Packing of Material

On the Basis of Sales Order, We will check the availability of product and do the packing of material for Delivery

Shipment and Transportation or Delivery of Goods

After Packing, we will make the necessary arrangement for Shipment /Transpiration and Issue/deliver the Goods to Customer

Billing or Invoicing

Sales Department will raise an Invoice to Customer as per terms agreed in Sales Order

Payment Collection

As per the payment terms agreed in sales order, we receive the payment from customer

Customer Evaluation and Reporting

As per the scheduled time we will evaluate our customers (Customer Aging Report) and Report to Management. This process will help to improve our services and increase our customers

 

Thank You

Leave a Reply

Your email address will not be published. Required fields are marked *