How to Configure Order to Cash in NetSuite

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:

1. Create a customer and inventory item
2. Create Customer
3. Create items based on inventory and non-inventory
4. Create Opportunity with Customer and Item
5. Create Sales Orders with Customer, Item, and Opportunity
6. Approve Sales Order
7. Fulfill Sales Order
8. SHIPMENT
9. INVOICE
10. PAYMENT
11. 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.