Oracle Order to Cash (O2C) Process

 Oracle Order to Cash (O2C) Process - End to End

The Order to Cash (O2C or OTC) process in Oracle applications refers to the end-to-end business flow from receiving a customer sales order, fulfilling it, invoicing the customer, and collecting payment. This process integrates multiple Oracle modules and varies slightly between Oracle E-Business Suite (EBS) and Oracle Fusion Cloud. Below is an overview of the standard steps, with differences noted.

Standard O2C Process Steps (Common to Both EBS and Fusion)

1. Enter Sales Order
Create a sales order with customer details, items, quantities, pricing, and ship-to/bill-to addresses.
• In EBS: Order Management module.
• In Fusion: Order Management Cloud (direct entry or import).

2. Book the Order
Validate and book the order, making it eligible for fulfillment. This may include credit checks.

3. Schedule/Reserve Inventory
Reserve stock for the order items.

4. Pick Release
Release the order for picking from inventory. Generate pick slips and move orders.

5. Pick Confirm
Confirm items have been picked (manual or automatic).

6. Ship Confirm
Confirm shipment, update inventory, and generate shipping documents (e.g., packing slip, bill of lading).

7. Invoice Generation 
Interface shipping data to Accounts Receivable (AR) to create an invoice. Run programs like AutoInvoice.

8. Revenue Recognition (if applicable) 
Recognize revenue based on rules.

9. Apply Receipts/Payments
Record customer payments and apply them to invoices.

10. Collections and Reconciliation
Manage overdue payments and reconcile with bank statements.