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What is order-to-cash?

Order to Cash (O2C) is a comprehensive business process that encompasses all the steps involved in receiving and fulfilling customer orders, from order initiation to payment receipt. It represents the entire lifecycle of a customer's order and includes activities such as order capture, order processing, inventory management, shipping, billing, and accounts receivable management.

The Order to Cash process is critical for businesses as it ensures the efficient and accurate handling of customer orders while maintaining financial control. By streamlining this process, organizations can enhance customer satisfaction, reduce order errors, optimize inventory levels, and accelerate cash flow.

Effective Order to Cash management often involves the integration of various software systems and automation tools to ensure seamless coordination between different departments, such as sales, logistics, and finance.