How to set up Order-to-Cash in your NetSuite ERP.
What is Order-to-cash?
Order to Cash (also known as O2C or OTC) is a business process for receiving and processing orders placed by your customers.
Why is Order-to-cash important?
O2C activities touch many different departments within a company — inventory, supply chain management, labor, etc. Because of this, the O2C process has a significant impact on the business. When Order to Cash activities are done manually it can cause bottlenecks that bring the business to a halt.
Because O2C involves almost every business function — manufacturing, sales, technology, fulfillment, accounting, shipping — companies need to have every function under control to manage the process effectively.
Order to cash functions also determine a company's cash inflow and working capital.
Ultimately, Order to cash is one of the most important business processes because it helps companies:
- Reduce costs and accelerate cash flow
- Resolve errors and delays
- Service customers faster and more efficiently
- Streamline the Order Management process by resolving inefficiencies like order submission delays, re-entries, duplicates, and backorders
- Resolve Bill-to-Cash inefficiencies such as quoting and invoicing errors, invoice delays, and using multiple disparate data sources
How to set up Order-to-cash in NetSuite
Software like NetSuite can help businesses significantly improve the functions involved in the O2C cycle. Using ERP software like NetSuite, companies can significantly improve the Order-to-cash process and resolve issues with automated tools and real-time information.
We've created a quick "how-to" guide to help NetSuite customers set up the Order to cash process in their NetSuite ERP system.
Here's an overview of the steps covered in this guide:
- Create a customer and inventory item
- Create Customer
- Create items based on inventory and non-inventory
- Create Opportunity with Customer and Item
- Create Sales Orders with Customer, Item, and Opportunity
- Approve Sales Order
- Fulfill Sales Order
- SHIPMENT
- INVOICE
- PAYMENT
- GL IMPACT
Click below to download the complete NetSuite Order-to-cash guide:
Check out our other NetSuite blogs for how-to guides and tips. ennVee also offers Order to Cash, Procure to Pay, and other NetSuite solutions. Contact us to discuss your challenges.
