Order to Cash (O2C)

Order to Cash (O2C) is the end-to-end business process that encompasses all activities from receiving a customer order to collecting payment. While primarily a sales function, O2C intersects with procurement when organizations need visibility across both sides of their business transactions.

The O2C process typically includes:

• Order management and entry
• Credit verification and approval
• Order fulfillment and inventory management
• Shipping and delivery logistics
• Customer invoicing
• Payment collection and processing
• Revenue recognition and reporting

Advanced business systems integrate O2C and P2P (Procure to Pay) processes to create a complete transaction lifecycle view, enabling better cash flow management, reduced working capital requirements, and improved coordination between sales, operations, and procurement functions across the value chain.