Order-to-cash is the heartbeat of selling: the journey from a customer's first interest to money in the bank. It crosses three modules, Sales raises the documents, Inventory moves the goods, Finance takes the payment, but to you it should feel like one smooth flow, with every document linked to the last.
- The five steps from quote to cash, and which module owns each
- Where the journey hands off to Inventory and Finance
- The common variations (deposits, partial delivery, skipping steps)
The journey, step by step
Quote the customer Sales
It starts with a question: “what will this cost?” You raise a quotation, a priced offer that commits nothing. If the customer accepts, this same document becomes the order, so nothing is re-keyed.
Confirm the order Sales
On agreement, the quote becomes a sales order, your commitment to supply. The order now reserves stock in Inventory (moving it from available to spoken-for), and where you are short it can pull in a purchase or a production order. The order tracks fulfilment and billing from here on.
Deliver the goods Sales · Inventory
You raise a delivery order against the order. This is the hand-off to Inventory: the goods physically leave, and stock is drawn down from the warehouse. One order can ship in several drops as stock becomes available.
Invoice the customer Sales · Finance
You raise an invoice, in full or in part. This is the hand-off to Finance: posting the invoice debits receivables and credits revenue, so the sale now shows in your books and the customer owes you.
Receive the payment Finance
The customer pays. You record a receipt that knocks off the invoice (clearing their balance) and lands the money in your bank account. The receivable is settled, the cash is in, and the journey is complete.
Where it crosses modules
- Sales to Inventory – the order reserves stock, and the delivery moves it out. You never touch Inventory directly; the sales documents drive it.
- Sales to Finance – the invoice posts the receivable, and the payment clears it. The books update themselves as you sell.
Common variations
- Deposit up front – issue the quotation as a proforma and take a customer deposit before you commit stock; apply it when you invoice.
- Partial delivery and billing – ship and invoice in stages against one order; the tallies keep the balance straight.
- Skip the front – a repeat customer can go straight to an order, or even a direct invoice, when no quote is needed.
- Something comes back – a return is a delivery return (goods) plus a credit note (money).
Related
- Module: Sales, Finance
- The mirror journey on the buying side: Procure-to-Pay (coming next)