O2C Process Flow
Sales Order
AR Invoice
AR Receipt
General Ledger
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Enter Sales Order Details
Book the Order
Create Pick Wave
Confirm Pick Slips
Ship Confirm
AR Invoice
AR Receipt
Account Entries(Sub-Ledger)
General Ledger
High-Level Flow:
O2C process starts with sales order, booking the order, creating a pick wave, confirm pick slips and then the ship confirmation.
So, from Sales Order to Shipconfirm creation of the Sales order process involved and delivery of the product involved.
After the shipping is done, we will generally creating AR Invoice, AR Reeccipts and then post it to GL.
For example ; If we want to book any item in the Amazon web site, we will first we will sign up and create account by entering the customer details.
Also, we will mention for which location we want to deliver the item and for which address we want to bill.
Bill-To-Address
Ship-To-Address
And then we will choose the products like mobile devices and book the order for it.
The next will be Order will be confirmed
After that the respective vendor(Amazon) fulfils the order that we placed.
Meaning Amazon will send the order details to manufacturer nothing but inventory transactions like
Inventory, pick wave, confirm the pick slips and ship confirm.
Also, bill will be generated(items booked, tax deduction amount,total amount need to be paid)
Once the customer paid the invoice and Amazon receives the payment, Cash receipt will be generated against the invoice.
All the transaction will be entered into accounting and then post them to General Ledger.
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Order-to-Cash (O2C) Process Overview
The Order-to-Cash (O2C) flow is the end-to-end process of entering a sales order into the system, delivering the goods, and invoicing the customer.
1. Order Entry and Booking
The process begins when an order is entered into the system. This entry includes essential details such as the customer, ship-to and bill-to addresses, payment terms, order type, price list, unit price, and warehouse. Once this information is finalized, the order is booked and proceeds through the defined workflow.
2. Shipping Execution
If an item is ready for shipment and quantities are available, the shipping execution phase begins:
Pick Wave: Shipment lines are grouped into a "pick wave"—a batch of items released together based on specific business criteria.
Pick Release: This action generates a move order. Items are then moved from their subinventory to a staging area.
Ship Confirm: Once the items are staged and placed on a delivery vehicle, the ship confirm process is executed to finalize the departure.
3. Billing and Invoicing
Following shipment, the AutoInvoice process imports invoices, credit memos, and on-account credits from external systems into Oracle Fusion Receivables. These invoices are then generated, printed, and sent to the customer for payment.
4. Receipt and Payment
When the payment is received, a receipt is generated and posted within the Receivables sub-ledger.
5. General Ledger (GL)
Finally, the accounting entries for both the AR invoice and the receipt are transferred to the General Ledger journal to ensure the company's financial records are updated and synchronized.
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Navivation:
Log into SCM_IMPL Account
Go to Order Management-->Order Management.
Click on Order Management
Click on Create Order
Click on Add the line.
Untill unless we click on save, it will generate any of the Sales Order Number.
Select FedEx Air Priority Overnight
Provide the warehouse: 001 Seatle
And then click on Save.
Create Order: Business World - 98578 - Draft
Now, we can see here:
We can see that Status shows as : Awaiting for Shipping. Means item is available waiting to ship.
Under Inventory and click on Picks
118200
As it is already interfaced, we can ignore the above message.
