Order to Cash Cycle
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The document presents an overview and details of the order-to-cash cycle. It discusses the flow chart and process, organizational and IT perspectives, and advantages. Key aspects of the cycle include order management, collections, cash applications, general ledger posting and reporting. The cycle aims to convert orders to cash while fulfilling customer needs and allowing easy tracking of errors. IT can implement each sub-set for maintenance, improvements, and consistency. Advantages include less working capital tied up in receivables, lower costs, faster cash flow, quicker issue resolution and higher customer satisfaction.
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Order to Cash Cycle
- 1. Order-to-Cash Cycle Presented by Ali Sadhik Shaik [email_address]
- 2. Agenda Overview Flow Chart Detailed O2C Process Organizational Perspective IT perspective Advantages Conclusion
- 3. O2C Overview
- 4. Flow Chart - Detailed
- 6. Order-to-cash Cycle Order Management Collections Cash Applications General Ledger posting and Reporting
- 7. Organizational Perspective All the functions are involved Focus on converting Order into cash Fulfillment of customer’s needs Easy in tracking errors and areas of concern Value addition through breakdown of process
- 8. IT Perspective Each sub-set of O2C cycle can be implemented using IT Ease in maintenance Effective improvements in Business Process Fast and Consistent
- 9. Advantages Less working capital tied up in accounts receivable (measured by days sales outstanding) Operational cost reductions Increased cash flow Faster resolution of customer issues Higher customer satisfaction
- 10. Summary “ reduces transaction processing costs- while providing innovative solutions that improve working capital and profitability”
- 11. Thank You