The Order-to-Cash process includes the steps involved with receiving and fulfilling customer orders for goods or services.
Receive request for quote and send quote to customer.
Receive quote request from customer. Prepare quote by applying pricing and negotiated discounts. Generate quote. Send proposal to customer.
Receive sales order from customer.
Validate order received from customer. Check internally and confirm availability to customer with estimated delivery time.
Deliver goods or services. Communicate regularly with customer to provide estimated time of completion or delivery. Manage changes or exceptions. Get acknowledgment of receipt from customer.
Send invoice to customer.
Create billing record and supporting documents. Verify revenue recognition. Generate and dispatch invoice. Resolve issues as needed.
Initiate collection, if needed.
Analyze customer account balances. Contact and negotiate with customers. Identify, investigate and resolve disputes. Initiate bad debt write-off.
Reconcile AR, cash and bank.
Why Your Order to Cash Process Is Important to Improving Cash Flow
Every organization needs access to timely cash flow to stay in business. Cash is critical for paying employees, investing in research and development, or participating in mergers and acquisitions. This makes managing cash flow a key function for business livelihood. Any function of your Order-to-Cash process that is delayed or operating inefficiently can increase your Days Sales Outstanding (DSO), restricting your ability to obtain the cash you deserve for products or services provided. If you’re ready to review and improve your Order-to-Cash process, Amalto is ready to help.
What is Order to Cash?
It’s all about how your business handles every step from the moment your customer asks for a quote to the point when you’re paid. Each step offers challenges and how you transform those challenges into opportunities can determine whether your business flourishes or fails.
Why Automate Order to Cash?
Sure, your Order-to-Cash process might seem fine. If it works, don’t fix it, right? What if it can be done better? If you’re still using a manual process or pushing paper, it can definitely be improved. Can you afford not to save time, cut costs, reduce errors and get paid faster?.