Order to cash - ERP Feature

When a sales order is received, it is executed, and payment is collected to initiate the order-to-cash cycle.

The sequence of events is as follows:

1. Capturing the order details, including items, quantities, rates, and delivery terms.
2. Conducting a credit check for the party/order before execution, which involves assessing outstanding payments, order limits, and overdue payments.
3. Accepting the order, checking inventory availability, and dispatching goods to the customer. If inventory is insufficient, the order is considered for the next planning cycle.
4. Raising an invoice based on the dispatched material. If the order is partially executed, it remains open for further dispatches; if fully executed, it is closed.
5. Invoicing based on the dispatched material, with the possibility of multiple invoices against an order.
6. Setting the invoice due date based on credit terms.
7. Collecting payment against the invoice as per the terms. Delayed payments may result in credit check flags and interest charges.

A robust ERP system can automate these steps, offering streamlined solutions for the order-to-cash process. Here’s what you can expect from your ERP:

– Order capturing from any handheld device, with data transfer for purchase order conversion.
– Automated credit checks, including blacklisting, outstanding payments, and overdue checks.
– One-click dispatch against the order with FIFO-based material selection, partial or full execution, and closure.
– Visibility of all open invoices against a customer upon payment receipt, with automatic FIFO-based adjustments based on due dates.
– Generation of debit notes for interest in case of delayed payments.

With numerous cloud ERP solutions available, prioritize those aligning with your requirements and emphasizing process automation. Ultimately, this not only streamlines operations but also reduces manual effort and eliminates human errors.