Scribd
Upload
18 views4 pages

O2c Cycle

Uploaded by

Shriniwas Satpute
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
18 views4 pages

O2c Cycle

Uploaded by

Shriniwas Satpute
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 4

Order to Cash (O2C)

The Order to Cash (O2C) process in Oracle R12 involves a series of steps that handle customer
orders from order entry through to payment collection. This process typically includes various
Oracle E-Business Suite modules such as Order Management, Inventory, Shipping Execution,
Receivables, and General Ledger.

Here’s an overview of the O2C process and the steps involved in setting it up in Oracle R12:

Order to Cash (O2C) Process Overview

1. Order Entry
o Entering customer orders into the system.
2. Order Processing
o Validating, booking, and reserving orders.
3. Inventory Management
o Managing inventory and ensuring stock availability.
4. Shipping Execution
o Picking, packing, and shipping the order to the customer.
5. Invoicing
o Generating and sending invoices to the customer.
6. Receivables Management
o Managing receivables and collecting payments.
7. Accounting
o Recording transactions in the General Ledger.

Detailed Steps for Setting Up O2C in Oracle R12

1. Define Order Management System Parameters

Configure the basic settings for order management.

Steps:

1. Navigate to Order Management Super User responsibility.


2. Go to Setup -> System Parameters -> Define.
3. Set the parameters for order processing, invoicing, and other settings.
2. Define Inventory Organizations

Create and configure inventory organizations for managing stock.

Steps:

1. Navigate to Inventory responsibility.


2. Go to Setup -> Organizations -> Organizations.
3. Define the inventory organizations, including location, organization classification, and
other details.

3. Define Shipping Networks

Set up shipping networks for managing inter-organization transfers.

Steps:

1. Navigate to Inventory responsibility.


2. Go to Setup -> Organizations -> Shipping Networks.
3. Define shipping networks between different inventory organizations.

4. Define Items and Item Categories

Create items and categorize them for better management and reporting.

Steps:

1. Navigate to Inventory responsibility.


2. Go to Items -> Master Items.
3. Define items, assign categories, and set attributes.

5. Define Price Lists

Set up price lists for the items being sold.

Steps:

1. Navigate to Order Management Super User responsibility.


2. Go to Pricing -> Price Lists.
3. Define price lists, including item prices, discounts, and effective dates.

6. Enter and Book Sales Orders

Create sales orders and book them for processing.

Steps:
1. Navigate to Order Management Super User responsibility.
2. Go to Orders, Returns -> Sales Orders.
3. Enter the order details, including customer, items, and quantities.
4. Validate and book the order.

7. Pick Release and Ship Confirm

Process the order for shipping.

Steps:

1. Navigate to Order Management Super User responsibility.


2. Go to Shipping -> Transactions.
3. Perform pick release to move items from inventory to the shipping stage.
4. Confirm the shipment to update inventory and create shipping documents.

8. Generate and Print Invoices

Generate invoices for shipped orders and send them to customers.

Steps:

1. Navigate to Receivables responsibility.


2. Go to Transactions -> Transactions.
3. Generate invoices based on the shipped orders.
4. Print and send invoices to customers.

9. Manage Receivables and Collections

Track receivables and manage collections.

Steps:

1. Navigate to Receivables responsibility.


2. Go to Receipts -> Receipts.
3. Record payments received from customers and apply them to the respective invoices.
4. Manage dunning and collection processes for overdue invoices.

10. Post to General Ledger

Record the financial transactions in the General Ledger.

Steps:

1. Navigate to General Ledger responsibility.


2. Go to Journals -> Enter.
3. Post the transactions from subledger modules (Order Management, Receivables) to the
General Ledger.

Configuration Details and Additional Considerations

System Parameters in Order Management

 OM System Parameters: Set parameters like default currency, sales credit type, and
order numbering.
 Transaction Types: Define different transaction types such as standard orders, return
orders, and internal orders.
 Shipping Parameters: Configure shipping parameters including default shipping
methods and freight carriers.

Inventory Setup

 Subinventories: Define subinventories within inventory organizations to manage stock


locations.
 Stock Locators: Set up locators within subinventories to track specific item locations.
 Min-Max Planning: Configure min-max planning for inventory replenishment.

Pricing and Discounting

 Modifiers: Set up price modifiers for discounts, surcharges, and promotions.


 Agreements: Create customer-specific pricing agreements if needed.

Receivables Configuration

 Customer Profiles: Define customer profiles for credit management and payment terms.
 Payment Methods: Set up different payment methods such as check, credit card, and
electronic funds transfer (EFT).
 AutoCash Rules: Configure AutoCash rules for automated application of receipts.

You might also like