Order to Cash (O2C) Overview

Order to Cash (O2C) is the complete business workflow from receiving customer demand to collecting payment and closing the transaction.

In O2VEND, the O2C module connects sales operations, documentation, stock movement, and collections in one process so teams can reduce delays and improve cash flow visibility.

What Is Covered in O2C

• Sales invoice lifecycle
• Goods issue and delivery documentation
• Receipt and payment tracking
• Credit note and return adjustments
• Journal and contra references for accounting impact

O2C Core Flow in O2VEND

1. Create or manage sales invoice.
2. Issue goods based on approved sales invoice.
3. Capture receipts against due amount.
4. Process credit/debit adjustments if returns or corrections happen.
5. Reconcile transaction in accounting books.

O2C Documentation Hub

Sales Operations

• Sales Section TOC
• Manage Sales
• Create Sales Invoice
• Sales Invoice Details
• Goods Issue (GDN)
• Create Lot in Sales

Transaction Adjustments

• Credit Note
• Debit Note
• Cancel Invoice

Collections and Financial Posting

• Receipt
• Payment
• Journal
• Contra

Related Purchase-Side Reference (Cross Workflow)

• Purchase Section TOC
• Manage Purchase Invoice
• Create Purchase Invoice
• Goods Received Note (GRN)

Services

• Services

Why O2C Matters for Business Performance

A well-managed O2C process improves both revenue velocity and customer satisfaction.

Key benefits:

• Faster billing-to-collection cycle
• Fewer invoicing and fulfillment mismatches
• Better overdue tracking and follow-up
• Improved cash-flow predictability
• Better audit readiness through traceable documents

Recommended O2C Best Practices

• Define approval rules before invoice creation.
• Ensure goods issue references the correct sales document.
• Record receipts daily to keep outstanding balances accurate.
• Use credit/debit notes instead of manual corrections.
• Reconcile O2C output with accounting reports weekly.

Related Modules

• Order Management System
• Accounting
• Reports
• Warehouse Management System

Frequently Asked Questions

What is O2C in ERP?

O2C (Order to Cash) is the workflow from sales order and invoice to payment collection and reconciliation.

Which pages are used most in O2C?

Typical daily pages are Sales creation, Goods Issue, Receipt, and Credit Note.

How does O2C connect with accounting?

Every invoice, receipt, and adjustment affects ledgers and should be reconciled with accounting books.