Order to Cash Lifecycle

The ordering process starts from entering orders and leads to the shipping of goods which continues with invoicing the customer and concludes with the receipt of cash and reconciling of the bank statement. The order is entered with information including: customer, ship-to, bill-to, payment terms, order type, price list, unit price, and warehouse. Then the order is booked and it goes through the workflow process. Credit Checking is also done. 

If it is a shipping item, it goes through shipping execution. In Shipping Execution the order is pick released which generates the move order. Once the item is brought from the sub-Inventory into the staging area it is ready to be placed on a shipping vehicle. Now you can run the ship confirm process.

AutoInvoice is a concurrent program that imports invoices, credit memos, and on–account credits from other systems to Oracle Receivables. In Cash Management the system pulls information from posted receipts and matches them to the bank statement for reconciliation.

Order Lifecycle

Ordering

• Entering the order, 
• Pricing the order, 
• Booking the order, 
• Reviewing credit if the order exceeds the credit limit, 
• Scheduling (which can include checking ATP, placing demand, and reserving on-hand Inventory), 
• Running pick release, and 
• Shipping the order.

Collecting

• Running AutoInvoice 
• Generating invoices 
• Collection efforts
• receipt of payments.

Accounting

Receipt information which is available to be used by Cash Management to reconcile the bank statement and transferring accounting information to the General Ledger

Overview of Application Integration

Order Management receives customer information from the Customer Master which can supply default information into the sales order.

Orders may come in directly from the CRM Suite of applications.

Order Management uses credit limits set by Credit Management to determine if the order should be released or placed on credit hold for review.

Once the order has been booked, information can flow to the Shipping application if it is a shippable item.

Inventory supplies item information for the sales order and receives reservation and demand information.

Pricing supplies information for the list price and any modifiers to apply against the list price.

Order management then sends information to Receivables through AutoInvoice.

Now it can be printed and sent to the customer for payment.

Finally the accounting information is sent to the General Ledger. The receipt information can also be accessed by Cash Management in order to reconcile the bank statements.

Order Management Process

Orders can be created from a number of different sources. You can create new orders by entering the information or by copying existing orders. You can also bring orders in from EDI, CRM, and other interfaces.

Managing Orders and Lines

Once orders are in the system you can view them from different sources. Then you can manage the orders and order lines by applying holds, removing holds, entering individual or mass changes, creating copies, or making cancellations.

Pricing Process

The pricing engine supplies the initial unit price from a price list or customer agreement. It will also apply any modifiers for which the order qualifies. Modifiers can either raise or lower the initial unit price. They can be set to be applied manually or automatically. They can also be set to only be applied after certain events like saving, booking, or shipping.

Shipping Process

When the item is ready, it is pick released.

•This creates the move order which can automatically detail where to get the item.

•The items are brought from Inventory to the staging area.

•The pick confirmation process in the system can automatically occur when you run pick release.

•Once the items are loaded on the truck from the staging area you can run the ship confirm process.

•When you run the ship confirm process the system can decrement Inventory and update the sales order.

•The information can then be transferred through AutoInvoice to Receivables for invoicing the customer.

AutoInvoice Process

Transaction data can be sourced from a number of locations for example: Order Management, Contracts or legacy systems.

When the data is brought into the Interface Tables, errors are pushed to the Interface Exceptions Table to be corrected.

Correct data gets pushed into Receivables by AutoInvoice program can be related to debit memos, memos, and as invoices.

AutoInvoice Exceptions: Errors are sent to the Interface Exceptions Table where they can be corrected. Once the lines are corrected, AutoInvoice can be rerun and invoices created from the corrected lines.

Cash Management Process

The final step of the process is to post entries to the General Ledger. The entries travel from Cash Management to Receivables and then to the General Ledger.