Order to cash business process is used for receiving and processing customer sales. The steps in
the process include the Sales order, delivery note, picking process, post good issue, billing
process, cash collection. A sales order is an electronic document that records customers order of
goods or services. A delivery note explains what is in the package and lets the person receiving
know if part of the order is missing due to lack of inventory.
The picking process is when someone moves the specified material quantity to its buyer. The
picking process is the most labor intensive and cost intensive process in a warehouse. The goods
issue is the movement of material goods are issued and the customer is posted. The posting of the
goods issue is the last step in the delivery process. Post Goods issue is when the goods are
physically moved from warehouse or plant after the Delivery is completely picked.
Billing is based on orders that have been shipped to customers or for orders that have not been
delivered yet. Receipt of payment is the final step in the fulfillment process. This receipt of
payment is also known as cash collection. Cash collection is when a company gets the money for
the goods or services that it has provided. This step is important because it is how a company
turns its assets into cash.
There are four types of goods movements in inventory management: Goods receipt, goods issue,
transfer postings, and stock transfers. Inventory management is important because it is the
process related to storing and moving materials within an organization. Inventory management
