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Order To Cash - O2C

The document outlines the Order to Cash (O2C) cycle, detailing its basic flow which includes steps from entering a sales order to transferring accounting to the General Ledger. Key processes such as credit checks, invoice creation, revenue recognition, and bank reconciliation are highlighted. Common errors and navigation through concurrent programs and basic tables involved in O2C are also discussed.

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Rajesh Bijili
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169 views6 pages

Order To Cash - O2C

The document outlines the Order to Cash (O2C) cycle, detailing its basic flow which includes steps from entering a sales order to transferring accounting to the General Ledger. Key processes such as credit checks, invoice creation, revenue recognition, and bank reconciliation are highlighted. Common errors and navigation through concurrent programs and basic tables involved in O2C are also discussed.

Uploaded by

Rajesh Bijili
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Order to Cash – O2C

This article elucidates about the basic flow, navigation, concurrent

programs, basic tables and common errors which are involved in O2C cycle.

O2C basic flow involves the following steps

Detail Flow

Enter a Sales Order >> Credit Check >> Book Order >> Pick Release and

Move Order >> Ship Confirm >> Invoice Creation >> Revenue Recognition

>> Collections >> Create and post Receipts >> Bank Reconciliation >>

Transfer Accounting and Posting to GL

1. Enter a Sales Order – In OM we create a sales order by entering Customer details


(Sold To, Ship To and Bill To), Order type, Price list, Warehouse, Items, Quantity
2. Credit Check – Credit check is required to check customer’s credibility. We perform
credit check to check if the customer has sufficient credit available with the
organization at the point of order booking, picking, packing and shipping.
3. Book Order – Book a sales order when it surpasses Credit Check/ any holds applied.
4. Pick Release and Move Order – Once the order gets booked, it gets picked from the
Inventory and it is moved to the staging area. This movement of items from
Inventory to staging area is Move Order.
5. Ship Confirm – Sending the items to customer site. Once the items are ship
confirmed the on hand items quantity from inventory gets reduced.
6. Invoice Creation – We need to run Workflow Background Process program in OM.
Workflow Background Process program moves the lines from OM to AR interface
tables (ra_interface_lines_all rail). After the successful completion of this program
we need to run Auto Invoice Master Program to move the lines from AR interface to
AR base table. The creation of invoice takes place at this step. Also we can create
other transaction types (Credit Memo, Debit Memo, Deposit, ChargeBack, and
Guarantee)
7. Revenue Recognition – Revenue Recognition manages revenue processing.
8. Collections – Advanced Collections manages the collections process until the
payment is received.
9. Create and post Receipts – Once the payment is received, a receipt is created and
posted in receivables.
10. Bank Reconciliation – In Cash Management module, the receipts data is pulled and
matches against the reconciliation file presented by bank.
11. Transfer Accounting and Posting to GL – The accounting is transferred to GL through
Sub Ledger Accounting.
Common for P2P and O2C Process:

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