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Order to Cash, also referred to as OTC or O2C, is the set of business processes involved with receiving and fulfilling customer requests for goods and services.
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Order to Cash is the actions required to deliver the products and services to fulfill customer orders. The Order to Cash process encompasses the entire lifecycle of order fulfillment, involving numerous strategies such as inventory management, operations, and production.
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The process begins once a customer order is received. Once the order has been processed, the next steps include strategizing your supply chain on how to get products out of stock or manufacturing, preparing products for shipments, and delivering it to the customer.
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Once the product has shipped successfully, the final stages of O2C progress through invoicing the customer, collecting payments, and recording the revenue in your general ledger (back end ERP).
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O2C Does not Include the Processes of Configuration Pricing Quoting (CPQ).
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Configuration, pricing and quoting (often referred to as CPQ) are the first stages of the Quote-to-Cash process.