Order to Cash (O2C) is a Business Process that
involves processing the Customer Orders/Requests thereby receiving the
corresponding payment for the goods sold.
It is one of the the basic cycle and is treated as the backbone of operation in any Supply Chain Business.
The following are the processes involved in an Order to Cash (O2C) cycle:
Enter the Customer Order (Order Creation)
Book the Order
Pick Release the Order
Ship Confirm
Create an Invoice
Receive the Payment from Customer
Transfer to GL.
The following diagram shows the typical Order to Cash (O2C) Cycle:
Creating a Sales Order in Oracle Apps:
You should provide the basic information while creating an Order:
Order Information
Customer Information
Item Information at Line Level
Booking a Sales Order in Oracle Apps:
By booking the order, you will notify the fulfillment team that the Order has been finalized. The fulfillment team then Purchase/ Manufacture the item according to the Order.
Launching a Pick Release in Oracle Apps:
Pick release is the process by which the items on the sales order are taken out from inventory. This process allocates on-hand inventory to your order and inform the warehouse personnel to move the item from inventory to the shipping staging area. Once your item is in the shipping staging area, it is ready to be shipped.
Ship Confirm the Sales Order in Oracle Apps:
It is a process of sending the Items from shipping staging area to the Customer site. By ship confirming you will notify EBS that the shipment is complete and thereby updating the on-hand Inventory. Ships confirm process will kick off the following Concurrent Programs:
Interface Trip stop, Packing slip Report, Bill of Lading, Commercial Invoice
Creating an Invoice in O2C cycle in Oracle Apps:
Here the Invoices are created based on the goods sold. We need to run the ‘Workflow Background Process’ where it picks the shipping records and transfers to Receivables interface.
Entering the Receipts in Receivables in Oracle Apps:
When payment is received from a customer the corresponding needs to be entered in EBS. This is done from the Receipts screen.
Transfer to GL:
Run the ‘General Ledger Transfer Program’ to transfer the Receivables Account Information to General Ledger
It is one of the the basic cycle and is treated as the backbone of operation in any Supply Chain Business.
The following are the processes involved in an Order to Cash (O2C) cycle:
Enter the Customer Order (Order Creation)
Book the Order
Pick Release the Order
Ship Confirm
Create an Invoice
Receive the Payment from Customer
Transfer to GL.
The following diagram shows the typical Order to Cash (O2C) Cycle:
Order to Cash Cycle
You should provide the basic information while creating an Order:
Order Information
Customer Information
Item Information at Line Level
Booking a Sales Order in Oracle Apps:
By booking the order, you will notify the fulfillment team that the Order has been finalized. The fulfillment team then Purchase/ Manufacture the item according to the Order.
Launching a Pick Release in Oracle Apps:
Pick release is the process by which the items on the sales order are taken out from inventory. This process allocates on-hand inventory to your order and inform the warehouse personnel to move the item from inventory to the shipping staging area. Once your item is in the shipping staging area, it is ready to be shipped.
Ship Confirm the Sales Order in Oracle Apps:
It is a process of sending the Items from shipping staging area to the Customer site. By ship confirming you will notify EBS that the shipment is complete and thereby updating the on-hand Inventory. Ships confirm process will kick off the following Concurrent Programs:
Interface Trip stop, Packing slip Report, Bill of Lading, Commercial Invoice
Creating an Invoice in O2C cycle in Oracle Apps:
Here the Invoices are created based on the goods sold. We need to run the ‘Workflow Background Process’ where it picks the shipping records and transfers to Receivables interface.
Entering the Receipts in Receivables in Oracle Apps:
When payment is received from a customer the corresponding needs to be entered in EBS. This is done from the Receipts screen.
Transfer to GL:
Run the ‘General Ledger Transfer Program’ to transfer the Receivables Account Information to General Ledger
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