Answer / riti

Order to Cash (O2C or OTC) is nothing but receiving and processing customer sales. This word is more frequently we use in ERP System. That Include following processes :
 Customer presence
 Order entry (creation of order/booking of order )
 Order fulfillment (physical & digital fulfillment)
 Distribution
 Invoicing
 Customer payments/collection
 Cash Application
 Deductions (If invoice Short Paid by Customer)
Thanks
RITI

Answer / mohammed mustafa

O2C process nothing but Order To Cash Process.

Many organization having O2C, P2P (Procurement To Pay), Q2C
(Quotation to Cash)etc..
O2C starts from Inquiry or Quotation or from Order depend
upon companies business process.

Normally 1) O2C is In- Quotation-sales Order-Delivery-TOR
(Transfer Of Requirement pass to MRP to create demand)
Packing- Picking-Route Determination-PGI-Transportation-
Invoice generation (it could be normal invoice & Excise
invoice)-Payment Collection.
2) If goods are spoiled/break/not delivery on time to
customer or any other reason, he will return material to
business for that business creates return delivery.
3) If customer wants replacement- once material is get
return business create Susequent free of charge goods sales
document with reference to Return order and deliver the
same.
4)If customer wants money back- then business creates
credit memo request with reference to return order and
create credit memo invoice.
5)If business wrongly quoted price/quantity business will
create debit memo request to adjust accounting entries

These all transaction comes under O2C process or Q2C Process

Let me know if u have any doubts contact me to
reach2muhammad@gmail.com

Regards,

Mohammed Mustafa
ERP Consultant Godrej Infotech Ltd Mumbai

Answer / kiran

Order to cash (OTC or O2C) is a set of business processes that involve receiving and fulfilling customer requests for goods or services.

An order to cash cycle consists of multiple sub-processes including:

•Customer order is documented
•Order is fulfilled or service is scheduled
•Order is shipped to customer or service is performed
•Invoice is created and sent to customer
•Customer sends payment /Collection
•Payment is recorded in general ledger

Answer / magna training

Order to cash involves the following.
1. Customer Initiating processes like - Orders, Contracts,
Scheduling Agreements.
2. Deliveries
3. Billing
4. Payment collection from Customer.
Order to Cash ( OTC as it is regularly called ) is used very
much in interviews and is an industry standard term. For
more information on Order to Cash and exercises on the same,
please visit -
http://blog.magnatraining.com/2011/02/06/sap-sd-training-order-to-cash-cycle-otc-cycle-jan-2011-batch/

Answer / tej

o2c is business process ,which is entire process depanding on only credit .it has consits of
*Reciving order to customer,
*Providing goods/services
*Reciving payment of customer.

Basically ,it has 5 applications i.e
Sales ,Order drafting ,Credit, Invocie ,collection & Cash Mgt.

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