Moving on to the next best function which can be moved to the back office or to an outsourcing provider is the “Order to Cash” function, commonly known as O2C. This function is also referred to as the “Accounts Receivable” or “AR” function. Based on basic accounting principles, This relates to customers buying stuff from an organization and paying up for the same. Simple accounting for this, debit the customer and credit sales. As the organization grows larger and larger, the function starts specializing into components. As a customer would place his order, it would be booked, a bill or an invoice would be raised for it, the payment would come in, it will be applied to the outstanding against the customer. The goods will be dispatched, received and accepted by the customer. Sometimes there will be rejections / failures, and warranties will chip in.
- Order to Cash
- Billing
- Cash Applications
- Collections
- Collections follow up
- Aging analysis
- Customer Maintenance
- Customer Support
- Query Management
- Cash Management
- Credit Management
- Reporting
- Customer Contract Management
- Compliance reporting
- Sales / Service Order Booking
- Sales / Service Order Management
- Sales / Service Order Analysis
- Customer Account reconciliations
- Accounting for sales returns
- Dispute Management
The list above is in the sequence which normally organizations adapt to over a period of time. The voice based processes sometimes take precedence.
One good site I refer to on O2C or AR functions is http://thearnetwork.com/accounts_receivable/index.php
I will get into further details at a later point in time
Attractive section of content. I just stumbled upon your blog and in accession capital to assert that I acquire actually enjoyed account your blog posts. Any way I will be subscribing to your augment and even I achievement you access consistently quickly.
I wish to show my respect for your kindness supporting people that must have help with your area. Your real dedication to passing the message along had become extremely invaluable and have continually made some individuals much like me to get to their targets. Your own valuable suggestions can mean so much to me and much more to my colleagues. Thank you; from each one of us.
After reading hundreds of posts on tens of blogs I’ve gotta admit yours is quite ok … but please check the comments – they’re really messy.
Hi there, I found your web site via Google whilst looking for a similar matter, your site came up, it seems to be good I have bookmarked it.
I’m impressed, I must say. Really rarely do I encounter a blog that’s both educative and entertaining, and let me tell you, you have hit the nail on the head. Your idea is outstanding; the issue is something that not enough people are speaking intelligently about. I am very happy that I stumbled across this in my search for something relating to this.
very nice post, i certainly love this website, keep on it
Regards for all your efforts that you have put in this. Very interesting information. “He who despairs over an event is a coward, but he who holds hope for the human condition is a fool.” by Albert Camus.
Resourcefulnesses like the one you referred here will be really usable to me! I will place a connection to this page on my web logs. I am certain my visitors will see that very structural.