Order-to-Cash Process
The term order-to-cash refers to the entire process from the receipt of an order to the completion of the transaction through payment by the customer. In the SAP ERP system, the OTC process represents the supplier view, i.e. the sales side (SAP SD Sales & Distribution) of a company.
Typically, an order is triggered by the customer on the company side, whereupon the customer receives an order confirmation. As a result, the order is processed and a shipment of goods is sent with a corresponding delivery notification as shipping confirmation. Upon receipt of the goods, i.e. actual delivery, the company receives a confirmation of receipt.
Normally, the invoice is sent with the shipment and paid by the customer in the next step. In this step, the company usually receives a payment notification as proof of payment. This usually completes the order-to-cash process.
There may be further process steps that vary greatly from company to company, customer to customer or even industry to industry, adapted or in terms of content, e.g. in the case of changes to the purchase order. In most cases, the entire process flow is automated and runs completely electronically on the basis of EDI messages.
This saves resources (personnel, time) and significantly reduces the possibility of errors and delays.
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Purchasing, Order & Cash
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