For companies, the order-to-cash process (OTC process or O2C process) is one of the most important business processes of all. It describes the entire life cycle of order processing – from customer order to payment processing and is therefore a prerequisite for generating sales and ensuring profitability.
The order to cash process (OTC or O2C) is one of the most important business processes for any company. It refers to the entire life cycle of order processing – from customer order to payment processing and is therefore a basis for generating sales and ensuring profitability.
Interdisciplinary, Multi-layered And Highly Complex
The O2C process is divided into several sub-steps and actions. Important steps in the OTC process include the
- Processing of customer orders
- Provision of products and services
- Monitoring of incoming payments
The handling of these sub-steps is a joint task within the company and involves, among others, warehousing and logistics, sales and marketing, the legal and IT departments, customer service and accounting.
This leads to considerable complexity in the entire order-to-cash workflow, which is exacerbated by the fact that the responsible parties involved generally access different data from different systems. The use of order-to-cash software is therefore essential in order to implement networked and efficie