Order To Cash Cycle (O2C) In Oracle Fusion

Order to Cash Cycle (O2C) in Oracle is used from a seller’s side to fulfill the orders and receive the money in lieu of the item/ services rendered. Theoretically Order To Cash Cycle is the mirror image of P2P cycle, just looked at from the sellers perspective. This blog is to give you a high level idea of the cycle. Though depending on the business practices and other reasons, there can be differences in the way it is implemented or steps involved in your project but basic gist remains the same.

So let’s discuss the Order To Cash Cycle briefly:

Let’s say you are in business of selling laptops and you receive an Order to ship 1000 laptops to your customer. So First step you will do in your system is to store the order information. Module used: Order Management. On receiving the Order there is a possibility that you might need to alter the configuration of the item e.g. you need to upgrade the RAM from 8 GB to 16 GB. For this configuration change, you may use “Supply Chain Orchestration” or SCO. System uses SCO to create the work order for each laptop you need to deliver and reserve the items ( 16 GB RAM in this case). So each of your laptop will be upgraded for the RAM. Once the technician has upgraded the RAM, you are all set to ship the laptops to the customer.

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Now comes the important part. $$$$.. Part where money is received. Along with items you will also send the Invoices to the customer. These invoices will be called AR Invoice in your system but for customer they will become AP Invoices. Upon receiving the Invoice and the laptops, customer will do a quality check on the laptops and store the invoices in the system. And depending on the terms agreed upon between you and the customer, payment will be made.

So what we observed is, following modules are the main modules in O2C cycle:
1. Order Management –> To store & handle the Orders
2. Inventory –> To get the items from
3. Account Receivables –> To get the money
4. Work Execution –> All the alterations happen in this module.

So this is how the O2C cycle works ( at least at a high level).

Related Posts:

• P2P Cycle
• Sales Order Query in Oracle Fusion
• Account Receivable Invoice Query In Fusion
• Work Order Details Query in Oracle Fusion
• Work Order – Sales Order Connecting Query

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Reference:
support.oracle.com

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