Order to Cash Life Cycle

What is Order to Cash

process?
The order-to-cash (OTC or O2C) process
contains everything from the order, packaging,
and delivery of goods and services to depositing
the money in the bank.
Order to cash (OTC or O2C) is a set of business
processes that involve receiving and fulfilling
customer requests for goods or services.
It is a business process for receiving and
processing customer sales. It contains whole
process ranging from customer purchase order
to Invoice

Order to Cash Life Cycle

The Order to Cash flow is the complete process of entering an order into the system (Sales Order), delivery
the good(s) (Shipping), and then producing the Invoice for the good(s) which are Ordered by the Customer.
It is one of the basic cycle and is treated as the backbone of operation in any Supply Chain Business.

Order to Cash has the following steps; the process will go through all steps from creating a Sales
Order to posting the details in GL.

Enter the Sales Order

Book the Sales Order
Launch Pick Release
Ship Confirm
Create Invoice
Create the Receipts
Transfer to General Ledger
Journal Import
Posting

Enter the Sales Order

(Order Creation)

Provide the basic information while creating an Order like:

Order Information

Customer Information

Item Information at Line Level

Navigation: Order Management Super User Operations (USA)>Orders Returns >Sales Orders
Enter the Customer details (Ship to and Bill to address), Order type etc.

Now click on Lines Tab. Enter the Item to be ordered and the quantity required.

Line is scheduled
automatically when the Line
Item is saved.

Scheduling/Un-scheduling
can be done manually by
selecting Schedule/Un
schedule from the Actions
Menu.

You can check if the item to be ordered is available in the Inventory by clicking on Availability Button.

Tables Affected:

OE_ORDER_HEADERS_ALL
OE_ORDER_LINES_ALL
Columns used for
identification of flow
FLOW_STATUS_CODE in
both the tables which is
ENTERED.

Book the Sales Order

By booking the order, you will notify the fulfillment team that the Order has been finalized. The
fulfillment team then Purchase/ Manufacture the item according to the Order.

Now that the Order is BOOKED, the status on the header is change accordingly.

Tables affected:

The FLOW_STATUS_CODE in
the table
OE_ORDER_HEADERS_ALL
would be BOOKED.
The FLOW_STATUS_CODE in
OE_ORDER_LINES_ALL will be
AWAITING_SHIPPING.
New records will be created
in WSH_DELIVERY_DETAILS
with RELEASED_STATUS=R
(Ready to Release)
Also Record(s) will be
inserted into
WSH_DELIVERY_ASSIGNMENT
S
At the same time DEMAND
INTERFACE PROGRAM runs in
the background and inserts
into MTL_DEMAND.

Launch Pick Release

Pick release is the process by which the items on the sales order are taken out from inventory. This process
allocates on-hand inventory to your order and inform the warehouse personnel to move the item from inventory to
the shipping staging area. Once your item is in the shipping staging area, it is ready to be shipped.
Navigation: Shipping> Release Sales Orders> Release Sales Orders

Pick Release is based

on a Standard Rule
and Order Number
For Based on Rule,
Enter Standard then
enter your sales
Order number.
Give the Sales Order
type (Standard,
missed, etc.) and
same as you can
choose Rule details
as you required.
Destination type and
Customer details are
shown.

Shipping Tab

Key details in the Shipping Tab:

Auto creates Delivery: Yes

Auto Pick Confirm: Yes
Auto pack Delivery: Yes

Subinventory Tab

Key details in the Subinventory tab:

Location and

Org Details

Execute Now

Then select Execute Now

button. On completion this
will show below window

Concurrent Program
Pick Release process will run in few more concurrent requests like Auto Pack Report, Pick Slip
Report, and Shipping Exceptions Report (These are what we have chosen in the shipping tab during
Pick Release).

Tables Affected:

If Autocreate Delivery is set

to Yes then a new record
is created in the table
WSH_NEW_DELIVERIES

DELIVERY_ID is populated
in the table
WSH_DELIVERY_ASSIGNME
NTS

The RELEASED_STATUS in
WSH_DELIVERY_DETAILS
would be now set to Y
(Pick Confirmed) if Auto
Pick Confirm is set to Yes
otherwise
RELEASED_STATUS is S
(Release to Warehouse)

Pick Confirm the Order

If Auto Pick Confirm is set to Yes during Pick Release, then this process will happen systematically. In
other cases, need to do this by doing a move order transaction.
Navigation: Inventory Super User > Move Order> Transact Move Order

Take the Move Order

Number form the
Shipping Transaction
Form and find that and
transact it.

Ship Confirm the Order

It is a process of sending the Items from shipping staging area to the Customer site. By ship
confirming you will notify EBS that the shipment is complete and thereby updating the on-hand
Inventory.
Navigation: Order Management Super User> Shipping> Transactions
Ships confirm process will start the
following Concurrent Programs:
Interface Trip stop, Packing slip
Report, Bill of Lading, Commercial
Invoice

Enter your Order Number and click

on Find button

The next step showing is Ship Confirm/Close Trip Stop

as highlighted

Here you can find all the

details. If the line status is
Staged/Pick Confirmed, we
can go for a shipment

Delivery Tab

Then Click Ship Confirm.

Note: If Ship Confirm

button is inactive, then
please check to the user
id you are logged in,
whether Shipping Grant
given or not. If not they
add a shipping grant to
the user id and try again.

Confirm Delivery

Then click OK.

Note:
The status in the Shipping
Transactions Delivery tab
should be Closed.

Concurrent Program

This will run concurrent programs like. Interface Trip Stop, Commercial Invoice, Packing Slip Report, Bill
of Lading. The details are below,

Tables Affected:

RELEASED_STATUS in
WSH_DELIVERY_DETAILS
would be C (Ship Confirmed)

FLOW_STATUS_CODE in
OE_ORDER_HEADERS_ALL
would be BOOKED

FLOW_STATUS_CODE in
OE_ORDER_LINES_ALL would
be SHIPPED
Once all background process
completes, the Shipping
Transaction Status in Lines/LPNs
tab becomes Interfaced.

Bill Of Lading: A legal document between the shipper of a particular item and the carrier detailing
the type, quantity and destination of the item being carried.

Packing Slip Report: shows the list of items packed

Commercial Invoice: It is used as a customs declaration provided by the person or corporation

that is exporting an item across international borders. It commonly includes an itemized detail of
the package contents and tax related info.

Vehicle Load Sheet Details: This report gives the summary of information of a load for a given
trip. The delivery information is printed in this report

Interface Trip Stop: When Shipping Execution ships the delivery, shipping module needs to
interface the information back to Oracle Order Management and Oracle Inventory Management
Modules also. This is done via the Interface Trips Stop Concurrent Program. OM Interface occurs first,
then Inventory Interface.

Sales Order
Status
You can check the status of the Sales Order, it status should be Shipped
Navigation: Orders, Returns> Sales Orders

You can query it, Press

F11, enter Sales Order
number and press
Ctrl+F11

Click the Lines tab and

you can see the status is
Shipped.

Create Invoice
Here the Invoices are created based on the goods sold. We need to run the Workflow Background
Process where it picks the shipping records and transfers to Receivables interface.
Navigation: View> Request> Submit a new request

Run Workflow
Background Process with
the following
parameters:

Concurrent Programs

This request will run some other concurrent programs like Auto invoice Master Program and Auto
invoice Import Program which creates an Invoice for that particular order in the Receivables
Responsibility.

Tables Affected:
Workflow Background Process inserts
the records RA_INTERFACE_LINES_ALL
with
INTERFACE_LINE_CONTEXT =
ORDER ENTRY
INTERFACE_LINE_ATTRIBUTE1=
Order_number
INTERFACE_LINE_ATTRIBUTE3=
Delivery_id

Check Invoice
Can be viewed the generated Invoice from the Receivables Responsibility.
Navigation: Receivables Super User> Transactions> Transactions
Can query by entering Sales Order
number in the Reference field.
And runs Auto invoice Master Program
and Auto invoice import program which
creates Invoice for that particular
Order

Can be query with the Order Number

as Reference.

Affected Tables:
RA_CUSTOMER_TRX_ALL will have the
Invoice header information. The
column
INTERFACE_HEADER_ATTRIBUTE1 will
have the Order Number.
RA_CUSTOMER_TRX_LINES_ALL will
have the Invoice lines information. The
column INTERFACE_LINE_ATTRIBUTE1
will have the Order Number.

Create the Receipts

When payment is received from a customer the corresponding needs to be entered in EBS. This
is done from the Receipts screen.
Receipt can created either manually or using Auto Lockbox. Here created Manually.
Navigation: Receivables> Receipts>Receipts

Here we can choose

Receipt Method
Manual
Enter all the details which
are required like, the
Receipt Number, amount
and Customer details and
click Apply button.
Click Apply to apply this to
an invoice and then select
the invoice in next screen
and then apply.

Transaction

Can be reviewed your work by navigating to

Navigation: Transactions

Can be Query by Invoice number.

You can see that the balance due is
showing as Zero, that means the
customer has paid the full amount.
Click on Distributions to view the
Account details.

Tables affected:

AR_CASH_RECEIPTS_ALL

Transfer to General Ledger

To transfer the Receivables accounting information to general ledger, run General Ledger Transfer
Program
Navigation: Receivables> View Requests

Parameters:

Give in the Start date and Post through date to

specify the date range of the transactions to be
transferred.
Specify the GL Posted Date, defaults to SYSDATE.

Post in summary:
This controls how Receivables creates journal entries
for your transactions in the interface table. If you
select No, then the General Ledger Interface program
creates at least one journal entry in the interface table
for each transaction in your posting submission. If you
select Yes, then the program creates one journal
entry for each general ledger account.

If the Parameter Run Journal Import is set to Yes,

the journal import program is kicked off
automatically which transfers journal entries from
the interface table to General Ledger, otherwise
follow the topic Journal Import to import the
journals to General Ledger manually.

Tables Affected:

GL_INTERFACE

Journal Import
To transfer the data from General Ledger Interface table to General Ledger, run the Journal Import
program from Oracle General Ledger.
Navigation: General Ledger > Journal> Import> Run
Parameters:

Select the appropriate Source.

Enter one of the following Selection Criteria:

No Group ID: To import all data for that source that has no
group ID. Use this option if you specified a NULL group ID for this
source.

All Group IDs: To import all data for that source that has a
group ID. Use this option to import multiple journal batches for
the same source with varying group IDs.

Specific Group ID: To import data for a specific source/group ID

combination. Choose a specific group ID from the List of Values
for the Specific Value field.

If you do not specify a Group ID, General Ledger imports all data
from the specified journal entry source, where the Group_ID is
null.

Define the Journal Import Run Options (optional)

Choose Post Errors to Suspense if you have suspense posting

enabled for your set of books to post the difference resulting
from any unbalanced journals to your suspense account.

Choose Create Summary Journals to have journal import create

the following:

One journal line for all transactions that share the same
account, period, and currency and that has a debit balance

One journal line for all transactions that share the same
account, period, and currency and that has a credit balance.

Enter a Date Range to have General Ledger import only journals

with accounting dates in that range. If you do not specify a date
range, General Ledger imports all journals data.

Choose whether to Import Descriptive Flexfields, and whether to

import them with validation.

Posting
Now You have to Post journal batches that we have imported previously to update the account
balances in General Ledger.

Navigation: General Ledger> Journals > Enter

Click Find

Un-posted Journal

From the list of un-posted journals displayed, select one journal at a time and click
on Post button to post the journal.

Post

If you know the batch name to be posted you can directly post using the Post window.