Order to Cash Lifecycle Overview R12 .ppt

Editor's Notes

• #4: Order to Cash Lifecycle This graphic depicts the order to cash lifecycle flows: Order and Credit Management, Shipping Execution, AutoInvoice, and Cash Management. The ordering process leads to the shipping of goods, followed by invoicing the customer and concluding with the receipt of payment and reconciling the bank statement. In Order Management, the order is entered with information that includes the customer, ship-to, bill-to, payment terms, order type, price list, unit price, and warehouse. Then credit checks are performed, the order is booked, and the order proceeds through the workflow process. If the order is for a shipping item and the quantities are available, the process includes shipping execution. In Shipping Execution, the order is pick released, which generates the move order. Once the item is brought from sub-Inventory into the staging area, it is ready to be placed on a shipping vehicle. After this, the ship confirm process is run. AutoInvoice imports invoices, credit memos, and on-account credits from other systems into Oracle Receivables. In Receivables, invoices are printed and sent to the customer. Revenue Recognition manages revenue processing. Advanced Collections manages the collection efforts until payment is received. The receipt is then posted in Receivables. In Cash Management, the system pulls information from posted receipts and matches this information to the bank statements for reconciliation.
• #6: Order Lifecycle This graphic depicts the order management lifecycle flows. Ordering: Entering the order, pricing the order, reviewing credit if the order exceeds the credit limit, booking the order, scheduling (which can include checking ATP, placing demand, and reserving on-hand Inventory), running pick release, and shipping the order. Collecting: Running AutoInvoice, generating invoices and subledger accounting entries, recognizing revenue, collecting payments, and entering receipt of payments. Accounting: Receipt information is available for use by Cash Management to reconcile the bank statement and to transfer subledger accounting entries to General Ledger.
• #7: Order Management Process This graphic depicts the order management process flow. Orders can be created from a number of different sources. You can create new orders by entering the information or by copying existing orders. You can also bring orders in from EDI, CRM, and other interfaces. Credit Management also performs a credit check on the customer, according to your credit management setups. See: Chapter 7, Credit Management for information about setting up for credit management.
• #8: Viewing and Managing Orders Once orders are in the system, you can view them from different sources. Then you can manage the orders and order lines by applying holds, removing holds, entering individual or mass changes, creating copies, or making cancellations.
• #9: Scheduling Process This graphic depicts the scheduling process flow.
• #10: Pricing Process This graphic depicts the pricing process flow. The pricing engine supplies the initial unit price from a price list or customer agreement. It will also apply any modifiers for which the order qualifies. Modifiers can either raise or lower the initial unit price. They can be set to be applied manually or automatically. They can also be set to be applied only after certain events, like saving, booking, or shipping.
• #11: Shipping Process This graphic depicts the shipping process flow. When the item is ready, it is pick released: This creates the move order, which can automatically detail where to get the item. The items are brought from Inventory to the staging area. The pick confirmation process in the system can automatically occur when you run pick release. Once the items are loaded on the truck from the staging area, you can run the ship confirm process. When you run the ship confirm process, the system can decrement Inventory and update the sales order. The information can then be transferred through AutoInvoice to Receivables for invoicing the customer.
• #12: AutoInvoice Process This graphic depicts the AutoInvoicing process flow. Transaction data can originate from Oracle applications and legacy systems. When the data is brought into the Interface Tables, errors are sent to the Interface Exceptions Table where they can be corrected. Once the lines are corrected, AutoInvoice can be rerun and invoices created from the corrected lines. Corrected data is sent to Receivables through the AutoInvoice program; this includes corrected data for debit memos, credit memos, and invoices.
• #13: Receivables Process This graphic depicts the cash management process flow. Instructor Note Instructor Preparation Tasks Verify that accounting periods in Accounts Receivable for Vision Operations and the Inventory Organization - Seattle Manufacturing are open. The current month should correspond to the current calendar period. AR Periods Responsibility: Receivables Manager (N) Control > Accounting > Open/Close Periods INV Periods Responsibility: Inventory Super User, Vision Operations (USA) (N) Accounting Close Cycle > Inventory Account Periods > Select Inventory Organization with an open accounting period De-select the Automatic Site Numbering for Customers
• #14: Cash Management Process This graphic depicts the cash management process flow. The final step of the process is to transfer subledger accounting entries and post entries to General Ledger. The entries travel from Cash Management to Receivables subledger accounting to General Ledger. See: Appendix A: Bank Reconciliation for information about Cash Management and bank reconciliation of Receivables transactions.
• #16: Overview of Application Integration Order Management receives customer information from the Customer Master, which can supply default information into the sales order. Orders may come in directly from the CRM suite of applications. Order Management uses credit limits set by Credit Management to determine if the order should be released or placed on credit hold for review. Once the order has been booked, information can flow to the Shipping application if it is a shippable item. Inventory supplies item information for the sales order and receives reservation and demand information. Pricing supplies information for the list price and any modifiers to apply against the list price. Order Management then sends information to Receivables through AutoInvoice. The invoices are then printed in Receivables and sent to the customer for payment. Receivables Revenue Recognition manages revenue processing. Advanced Collections manages the collection efforts. Oracle Payments manages the processing of customer payment. The Create Accounting program generates subledger accounting entries in Receivables. Accounting information is sent from the Receivables subledgers to the General Ledger. Receipt information can be accessed by Cash Management in order to reconcile bank statements.
• #17: Answers: 2 Quiz Specifications The correct answer is “Advanced Collections manages the collection efforts until payment is received. The receipt is then posted in Receivables. Cash Management pulls the information from posted receipts and matches this information to the bank statements for reconciliation”.
• #18: Answers: 1, 2 Quiz Specifications The correct answer is “The step Items are first loaded and the ship confirm process is run comes before the inventory is decremented and the sales order is updated”.
• #19: Answers: 2 Quiz Specifications The correct answer is “AutoInvoicing is part of the Collecting phase in the Order lifecycle”.
• #20: Answers: 3 Quiz Specifications The correct answer is “Receivables Revenue recognition program handles revenue processing”.