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Thursday, July 24

O2C Overview



Order to Cash Cycle:
Order to Cash means Customer’s Order Placing to Vendor’s Cash Receiving. When your final product is ready to be sold, you market it. The customer gets fascinated with the marketing campaign and decides to buy your product and from here starts the O2C cycle.
1.      Oracle Order Management:Customer places the order.
2.      Oracle Order Management:You enter the customer order
3.      Oracle Inventory: Check the available unit and the quantity ordered by the customer.
4.      Oracle Order Management:You ship the product to customer site and decreases the Finished Goods inventory.
5.      Oracle Receivables:The customer receives the product and you invoice the customer.
6.      Oracle General Ledger:You record your revenue and receivables.
7.      Oracle Receivables:The customer pays and you receive the cash/check.
8.      Oracle Cash Management:Oracle Receivables sends the customer receipt for Bank Reconciliation. After reconciliation, Oracle Cash Management send the actual bank balance or Oracle General Ledger.
9.      Oracle General Ledger:You have the actual bank balance.
This is how the P2P and O2C cycle works, but this is not the only way, obviously there are many other applications with different cycles. This is one of them

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