Streamline your sales order cycle for support

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so in this video we are going to see o2c cycle what does it mean by o2c cycle oto c stands for order to cash what is order order is nothing but sales order cash means customer payment this o2c cycle we can manage the process right from sales order to till we receive the payment from customer so what are the sequence of activities we have to record as a part of o2 cycle we'll see now first we'll discuss the same we'll see in the system first we have to create sales order so sales order we have to validate the sales order next step would be booking the sales order or say book sales order and we have to perform the pick release and shift confirmation after shift confirmation we create sales invoice when we get the payment from customer we create receipt so order to cash the process starts with the sales order and the process ends with receipt okay we receive the order from the customer that we are calling a sales order and we receive the payment from customer that we are calling as a receipt right from order from customer till we receive the payment from customer what are the sequence activities we have to perform that process we are calling as o2c cycle order to cache if you are going to execute this process what are the different applications are involved we'll see that when you talk about different applications by using oem auto management application we can create the sales order order management with this order management what we can do we can create the sales order by using om we can create the sales order and we can perform the validation by using the order management and we can book the sales order to perform these three activities very primarily we use order management application when you create the sales order we select item we received order from the customer for which item that item we have to select as a part of sales order when you select item as a part of sales order within the order management application we need sales price or say selling price we need selling price for which item what is the selling price if you want to set up in the system we have to use the application called as pricing pricing application by using the pricing application we can set the item selling price with order management what we can do we can enter sales order by using order management we can enter the sales order when you enter the sales order in order management within the sales order whatever the item you are selecting a price is required for that item as a selling price for that we use the application called as pricing application and when you create item when you create the sales order again is the item the item is available or not in our warehouse that system has to display during the sales order creation process for that we use gop application okay gop gop stands for global order promising by using the gop global order promising we can check availability of item as well as as per the customer demand from which is sources we are going to source the items okay that means you can set sourcing rules within the gop the global order promising you can set sourcing rules if any orders from the customers to fulfill those orders to supply against those sales orders the item from where you are going to get those items are we going to purchase from your suppliers to supply to your customers are you going to pick the items which are available within your inventory or you are going to make the items are you going to manufacture what is the source of items when you supply to your customers those all you can set up by using the gop okay so availability of items we can get from the gop as well as okay sourcing from where we are going to source the items and that you can specify okay you can say say source of items as forever customer demand simply you can say by using gop global order promising you can manage demand and supplies so when you create the sales order okay when you create the sales order the gop setups also we have to complete global order promising setup so that whatever the item you are selecting within the sales order system will identify the stock is available or not with the help of global order promising setups as well as you can set whenever you supply to customer from where you are getting the items those all you can set up with the sourcing rules and when you create the sales order what sequence of steps you are going to follow to supply the material to your customer that you have to set up by using door do do means distributed order orchestration within that you can see when you create the sales order what are the sequence of steps you have to follow to ship the items to customer location those all steps you can define by using the do distributed order orchestration okay by using the distributor order orchestration you can set up all those okay so this is nothing but workflow okay so this is workflow do means distributed order orchestration which is equal to workflow in how many steps you are going to complete your sales process once you receive the order from the customer right from order how many steps are going to be involved to ship the material to customer that you can define by using the do so [Music] we are going to create the sales orders with the help of order management and you create the sales order for the items we can derive the price from the pricing application and whether stock is available or not from where you are getting that item to supply to your customer everything you can set up by using the gop with the help of do that is nothing but workflow you are going to define the sales order process so to execute these these all be required without completing these three application setups you cannot create the sales order the do distributor order orchestration is a serious one which you are providing as per your business requirement if you want to modify the workflow if you want to change the sequence of activities which you are going to perform right from receiving the sales order to till you deliver the material to customer yes you can modify this okay now so peak release and shift confirmation these two physical activities should be performed within the inventory whenever inventory department will perform big release or shift confirmation those updates we track by using the order management application in the order management application so against our sales orders the peak release is completed or not ship confirmation is completed or not that information we can update so this peak release and shift confirmation takes place within the inventory application by using the order management we are going to create the sales order we will validate and will book the sales order by using inventory application we are going to perform the peak release and ship confirmation by using account receivables application here accounts receivable we'll create the sales invoice and we'll create the site so when we get order from the customer we create the same order as a sales order and we have to validate it when you validate system will verify what are the information you provided within the sales order everything is fine or not same time based on these setups based on this setups these are the three application setups along with that this is a predefined seeded based on these three applications and this workflow to support the sales order process everything is fine or not it will verify for that we have to submit every sales order for validation the next step is booking sales order booking sales order is nothing but giving confirmation to the customer as we are going to supply the requested item and quantity quick release we given the confirmation to the customer as we are going to supply now inventory department has to pick the material to ship to the customer so when they are going to pick from where they can pick you can see the item the system environment as a part of sub inventory within the warehouse there could be partitions that we call as sub-inventories by when you pick the material from sub-inventory to ship to the customer that activity we are calling as peak release it is nothing but picking material from inventory for shipping purpose and whenever we move the material to customer location that we track in our system as a ship conform the peak release and ship confirmation activities physically takes place within the warehouse that is reason by using the inventory application we have to perform those two activities once ship confirmation is done based on the ship confirmation we create sales invoice in the receivables application against our sales order okay against our sales order we create the sales invoice and receivables application your sales invoice nothing but the sales order information we create as a sales invoice here that means we are creating the sales invoice automatically based on sales order information once shipment is done we can we confirm the same shipment the system based on the sales order information we create sales invoice and receivables application that we can call as auto invoice auto invoice means in okay i just took here let's move to sales advice sorry the same auto invoice auto invoice auto invoice is nothing but we are creating invoice automatically in the receivers based on the sales order information when we get the payment from customer against the sales invoice we create receipt the receipt will apply in this transaction so the o2c cycle the process is starting with order nothing but sales order and it will end with the cash when we get the payment from customer now we'll see the same in the system environment i completed required setups from all the applications and we are going to use the business unit as a dlf u.s business unit and customer is the customer name is dlf customer one and item is item number dlf1001 the item name is macbook and we are going to ship this item okay we are going to ship this item from which inventory organization dlf dollars inventory okay i'll say inventory organization i'm going to use these setups we are going to create the sales order within this business unit against this customer and within the sales order i am going to select item called as macbook and that macbook we are going to supply to customer from this inventory organization now we'll go and see how to create the sales order to create the sales order go to navigator within the navigator you can find the section called as order management here you can see order management expand this order and click on order management task here we are able to see order management section and order management task because i assigned order manager role to roll to the user the current user which user we are using here to this user i assign that role to the same role i assigned our business unit blf us business unit this role i assign to the current user to the same role i assign dlf u.s business unit a current user can have access to order management application to create the sales orders with the help of this order manager role and within that order management the user can create the sales orders within this business unit so go to navigator under order management section you can see order management is the task click on order management task this is order management or say order entry dashboard here you can have a interactive information without running the reports without searching for data directly you can find out order related information here so how many orders on hold how many orders are back order how many orders have passed you how many draft orders in the error what about the fulfillment lines and jio party this all related to sales order related different classifications back order is type of transaction like based on the scenario when stock is not available that would get back ordered and we can place the hold our system can place the holds on the sales orders and the past due which sales orders we are not delivered and based on your setups or the information what you are selecting if anything wrong it will list out here in the error section and the process which we are executing and if any sales orders in the risk that you can see here so this is interactive dashboards you can see related to sales order information now to create the sales order click on create order tab click on create order tab we want to create the sales order against such a customer dlf customer say we received one order from the customer within the customer order we can see a customer is requesting for one macbook whatever the order we received from customer that we have to record in our system the customer name is dlf customer okay dlf customer one we are creating the sales order within this business unit whenever you select this customer customer related information here you can see system is defaulting automatically system is fetching customer related details now we received order from this customer for which item or macbook that item you can select here the item number what is the item number dlf 1001 is the item number item name is macbook here you can type item number dlf is fetching the item number dlf1001 this item is available in which inventory organization dlf dollars item name is macbook so this dlf dollars inventory organization is assigned to this business unit as a part of order management setups the dlf dollars inventory organization is assigned the reason we are able to access items from that inventory from this business unit select item now here we are able to see stock is available we are able to see stock is available that means stock is available because of the gop setups and we are able to see the price for this item this item selling price sales price is 1500 dollars how we are able to see this price i completed pricing setups by using the pricing application using the pricing application i completed pricing setups there i set up for this item within for this customer 1500 is the price by using the pricing you can set for which customer which item is you are selling at what price same item you can set the different prices customer wise you can set there is other criterias also where you can set up the price so there is a pricing strategy as per the strategy you can set the pricing now if you want to understand because of which setups we are getting this price as a fifteen hundred dollars for this item for this customer you can check go to actions click on view pricing strategy under segment based on the pricing strategy and segments what you created system is deriving this price system is taking this price based on the pricing strategy and the segment click on view pricing status under segment action is displaying dlf customer pricing segment elf pricing strategy because of these two setups and to support these two setups there are few other setups also because of these two pricing segments and status is it is fetching this price now you can click on add click on add if you want to add few other items within the same sales order same process you can follow so by default system is taking quantity as one if you want to change you can change as per the order what you receive from customer you can enter the details in the system now go to shipment details tab click on shipment details and here you can select shipping method how you are going to ship this macbook to the customer that method you can select here already created one shipping method called as dlf road workload okay select shipping method how you are going to ship this item to customer under shipping you no need to specify anything go to supply tab under supply app you have to select warehouse from which warehouse you are going to ship this item is not mandatory okay already the item while we are selecting that item we have seen the item is available in which inventory from that inventory only we will supply the same you can select here you can select dlf dollars dlf dollars is the inventory organization code the actual name is dlf.inventory select it now you can click on save click on save go to lines okay go to lines this is the line information and this is sales order header information we save this sales order now system generating sales order number sales order number is double one two you can set up whatever the number you required for sales orders you have a separate task to set up sales order numbering as per your requirement what number you want to trigger when you create the sales order you can set up that is possible now our sales order status is draft we not have confirmed to the customer just we created whatever the order we received from the customer that order we are entering in the system as a sales order that is reason the sales order status is draft once you give the confirmation to the customer you can update in the system as you confirmed by booking the sales order by booking the sales order you can give the confirmation okay now our sales order is ready we'll go on to verify we will submit this sales order for validation to submit the sales order for validation go to actions click on validate now it will verify within our sales order whatever information we entered to support this sales order process whatever the setups we completed all the setups are going to support or not system will check system verified everything is fine so order validation completed without errors no errors everything is fine say okay now we want to give the confirmation to the customer that you can record the confirmation the system as booking the sales order what we are discussing booking the sales order booking the sales order is nothing but as per system submitting once you submit the sales order that is equal to giving confirmation to the customer you can call it as a booking sales order also click on submit the sales order will turn into draft to actual or say final sales order one double one two was submitted save okay now look at the status of our sales order processing processing means we give an already confirmation to the customer so we are we are working on the sales order to deliver the requested material to a customer now you can click on refresh and you see the status here by default the status is not started we not it started working on the process just now we given the confirmation to the customer we should work on the process of delivering the material to customer now we selected this item the stock also available in the inventory that also we have seen okay stock is available we just this is a price everything just we have seen and now system will schedule the sales order and it will result just click on refresh you can see the status updates so what system is saying avoiding shipping against the sales order whatever the items we have we have to ship that is an extra activity which we have to perform we discuss one point we have a do do stands for distributed order orchestration within within that we have workflow or else you can say do is nothing but workflow as per that workflow only you can see the status as awaiting shipping so within the door do what sequence of steps we have to follow when you create the sales order those are already defined we'll go and see as per do as per workflow what steps we have to follow we can see from here click on actions and here there is an action called as switch to fulfillment view click on switch to fulfillment view and from here go to fulfillment lines scroll little down under general tab you can see orchestration process number orchestration process number number means distributed order orchestration process number for this sales order system generated one number when you click on this number you can see what are the steps we are going to follow to ship the material to customer after shipping the material to customer what are the other activities we have to perform against this sales order you can see as a part of workflow click on orchestration process number now you can see as per workflow the sales order the line schedule the task is schedule status is scheduled it's already scheduled when it was scheduled this is a date and time and item also reserved since item is available within the inventory the stock is available the item also reserved ask is result status is reserved completed when it got reserved you can see here okay and next step is we have to ship to the customer we have to ship to the customer the status is awaiting shipping we're not at ship to the customer still shipment is pending after shipping to the customer we have to create invoice and we have to send that invoice to customer so this is the process we have to follow this process is defined by using the workflow your workflow is nothing but dvo do distributed order orchestration here we discussed first we have to create the sales order and we have to validate we have to book the sales order these three we completed book sales or is nothing but submitting the sales order now before you ship within our inventory we have to pick that items from the sub inventory i will go and perform quick release and ship confirmation within the inventory the same activities will get updated against our sales order go to inventory go to navigator and here go to supply chain execution section under supply chain execution we have inventory management task click on inventory management task how we are able to see inventory management task here to this user i assigned inventory application related roles to those roles i assigned our inventory organization dlf dallas okay to this user i assigned inventory roles to inventory roles i assigned inventory organization now we can perform the pick release equilibrium is nothing but picking material from sub inventory and keeping ready to ship to the customer you can say we pick the material from sub inventory and we place in the staging area so that activity we are calling as a peak release whenever we do that activity within the inventory the same we have to record in the system say inventory department completed that activity they picked that item called as macbook and it is ready for shipping now we have to record in the system as a peak release is completed go to task list here we have a drop down option from drop down select shipments click on manage shipment lines click on manage shipment lines here you can notice dlf dollars this user got access to dlf dollars inventory organization so from this dlf dollars only we are going to pick the item from here only we are going to ship to the customer now you can find out our sales order what is our sales order number double one two so click on search here you can notice shift from organization yes we are going to ship that item from this inventory organization only just click on search so this is our sales order number line status is ready to release and this information we can send to the sewage application to create invoice ready to interface we'll talk about what is the meaning of interfacing and you can see other details how you are going to ship to the customer against the sales order from which organization you are going to ship and to which customer you are going to ship this material and what is the customer address to ship the item now go to actions and say pick release epic release concurrent request submitted a concurrent request failed zero one request submitted nothing is failed say okay now system will create shipment number for our sales order now see the shipment number is one seven double zero one okay the shipment number is one what is the number one seven double zero one one seven double zero one so against our sales order we performed peak release for shipping purpose this is the number now click on cancel to close this page we picked okay we picked some specific inventory organization and now we have to ship to the customer location so our inventory department ship this item to customer the same we have to record in the system as a ship confirmation is completed to record that click on cancel to close this page now go to task list click on manage shipments click on manage shipments and here you can find out our sales order with respect to shipment number what is the shipment number one double zero one seven double zero one enter one seven double zero one click on search okay here you can see the shipment details okay so the shipment is belongs to the sales order number double one two and it is staged that means already we picked the material that is activity we perform how much quantity we are going to ship to the customer requested quantity is one as per the sales order we are going to ship the same quantity one quantity we are going to ship now you can click on ship confirmation shipment method assign shipment method dlf road now click on your shift quantity how much how much quantity we ship to the customer that you can specify then click on ship confirm say yes it will trigger relevant processes now this is our shipment number for our sales order click on search you can look at the sales order details okay line status is shipped earlier it was staged stage means we picked from sub inventory and we placed in the staging area is ready to ship now we confirmed shipment the status is changed to ship and you can say cancel click on cancel again you can go to manage shipments and find out our sales order with the shipment number 17001 is the shipment number click on search okay now see the align status interfaced the sales order information is interfaced from where it is interfaced to where we'll see so we are creating the sales order within order management within the order management we are creating the sales order and we have application called as receivables the receivables we have one interface okay the circles we have one interface receivables we have one interface the interface name is auto invoice interface what is the purpose of this interface okay this is a receivables application they are accounts receivable this is om order management application so what is the purpose of this reservables auto invoice interface it will receive sales orders information into receivables first it will take into this interface within the interface you can have it tables within the interface you can have a tables the information will get stored in the interface tables now what system is saying the sales order this is the number okay double one two the sales order interfaced that means whatever the sales order we created in the order management the sales order information is transferred from order management to receivables auto invoice interface within this auto invoice interface we have interface tables now our sales order information is transferred to receivables application and that is available in the auto invoice interface in the interface tables there is a meaning of it interface means the data is transferred to receivables auto invoice interface that is available in the interface tables now we have to import the sales order information from interface to base tables in every application you can have a base tables to store the data permanently all the invoices information what we create in the receivables we have to store in the invoice table say transaction table the sales invoice information we have to store in the base tables now from order management the sales information is transferred to receivables auto invoice interface this interfaces belongs to the servers say ar auto invoice interface now the data is available in this interface tables from here we have to import into base tables how to import into base tables so we have to move the data from interface tables to base tables so that in receivables you can see auto invoice or you can say sales invoice how we are going to create the sales advice based on the sales order one sale service ship confirmed that information we can send to receivables application as an auto invoice we completed up to here now we'll go and check our sales order status we'll go and check sales order status click on cancel go to order management last name is order management click on order management task will take us to order management application sales order creation page what is our sales order number double one two click on search and look at the status of our sales order awaiting billing after creating sales order we submitted after submitting we have seen the status as awaiting shipping it was pending for shipping shipment also be completed now it is awaiting for billing against the sales order we have to create invoice in the receivables application the same you can see with workflow also nothing but distributed order orchestration do do work do click on shift to fulfillment lines a fulfillment view [Music] okay here you have a fulfillment lines under fulfillment lines scroll little down you can find orchestration process number click on orchestration process number what is the current stage where this process is standing the sales are related process where it is standing that you can see with the help of workflow just click on orchestration process number now you can see it is updated as a task is shipped status is shipped shipment is done now only pending activities is awaiting for billing when we ship against the sales order here is the information on what date what time is all you can see it's pending for invoice creation and receivables application now to import sales order information from this interface table to receivables base tables we have to submit one process go to navigator within the navigator you can find one task called section called as tools you have to go to tools see here expand tools under tools we have one task called as scheduled processes scheduled processes click on schedule processes click on schedule new process by using one job we can import the data from interface tables to base tables the job name is import auto invoice use tab it will fetch the job name import auto invoice what the job can do it imports invoices in sales or information it can import from auto invoice interface tables to base tables save okay we create a sales order in which business unit in this business unit when you create the sales order the entire process can be handled by this workflow only do distribute router orchestration we are creating the sales order by using the order management and the sales order should follow which sequence of steps that is decided by this do only so that the reason the sales orders whatever we created in the order management the source is due only distributor auto orchestration now the transaction source the order management whatever the sales orders we create for all those sales orders the source where the transactions are created that is distributed orchestration here you can select source name as a distributed order orchestration select it this is one of the transaction source in the receivables application also but whenever you create sales orders within the order management by default system takes sources distributor orchestration when you see source as a distributor orchestration that means we have to understand the sales is created in the order management now you can submit this we are telling to the system within this business unit if any sales order is created okay in order management when you select distributed orchestration it's nothing but workflow name but that is that we are using in the order management only within this business unit in order management application if any sales order is created and shipment is confirmed that information would be available in the auto invoice interface tables that information it will import into base tables who is going to do that activity this import auto invoice job this process will do that activity now click on submit say okay click on refresh to see the status of the job okay import auto invoice status is the process running click on refresh just click on refresh it take some time to import the data from auto invoice interface tables to receivables base tables refresh just click on refresh now you can see import auto invoice process status is succeeded and it generated on report also import auto invoice execution report you can open this report and you can see how many invoices are created in the receivables based on the sales orders you can click on republish and it will open the report we will go and see directly in the receivables application now we'll go to receivables the service go to task called as billing go to building tasks and click on task list select terms called as manage transactions click on manage transactions just wait for a moment it's taking time okay from here we can find out the sales invoices which system created that sales invoice only we call as auto invoice why we are calling as auto invoice we are not creating the invoice in the receivables automatically system is creating based on the sales order information that the reason we call it as auto invoice you can select the transaction source the transaction sources the distributor order orchestration and select transaction sources distribute our orchestration this is the source when you create sales or sales orders within the order management the source is the distributed order orchestration and reference number your reference number is nothing but our sales order number double one two with the sales order number if any invoice is created within the receivables that you can see now click on search invoice is great okay this is a number system is taking for invoice the amount is 1500 now click on the invoice number okay this you call as auto invoice this invoice is created automatically you click on show more so that this invoice is created against which is sales order click on show more just click on show more you can see this invoice is created against which sales order sales order number is double one two now i will go and check what is the status of sales order in the order management go to [Music] order management task our sales order number is double one two search now our sales order status is closed when you create invoice against the sales order the status will turn into closed now whenever we get the payment from customer we create the receipt the receipt will apply on the transaction we'll see how to create the receipt how the receipt can be applied on the transaction go to navigator under receivables go to accounts receivable task by using the accounts receivable task you can create the receipts say customer paid 1500 dollars now you can create the receipt click on create receipt how we receive the payment from customers say customer paid through check select receipt method as a dlf check when you receive the check from customer what is the check number receipt number is nothing but cheque number you can enter the cheque number here how much amount we received from customer 1500 a much customer will receive that 1500 a customer name you can enter dlf customer one and what is the customer site nothing but address okay select customer site here it's fetching now this 1500 dollars you want to apply on which a transaction why we receive this 1500 because there is one invoice against the customer customer paid against that involves customer purchased one macbook from us for that customer paid now this receipt we have to apply on the transaction here click on drop down select submit and apply manual and click on add open receivables what is the transaction number one double zero one transaction number is one double zero one with what you want to search that's what or else you want to find out the transaction with your sales order number select sales order number as a matching criteria the sales order number is double one two search so this is a transaction available with our sales order select click on add select this record click on add you can notice in the background the same invoice is added now click on that now you can see the receipt among fifteen hundred dollars applied on this transaction number one double zero one in one double zero one transaction there is no due amount zero applied fifteen we paid okay customer paid so we create a receipt that a ct we applied on the transaction say save and close now if you go and see transaction level how much customer has to pay you can see customer already paid go to task list click on manage transactions select transaction sources distributed orchestration and the sales invoice our auto invoice is created against double one two sales order search now click on that auto invoice number and go to actions click on view balance details click on view balance details now you can see original transaction amount is 1500 receipts customer paid 1500 of balance is zero why it is showing minus from this amount this amount need to be reduced since paid so this is all about o2c cycle okay we created sales order and finally we created receipt sales is nothing but order cash is nothing but receipt this is all about o2c cycle we are creating the sales order and validating and booking from order management from inventory application we are performing the peak relationship confirmation from receivables we are creating the sales invoices based on the sales order information nothing but auto invoice we are creating we can create receipts the receipts can be applied on the sales invoices to support order management application process we are going to take the support from these two applications and from this do workflow okay and other side to perform peak relationship confirmation we need inventory support also within the inventory only we can perform this peak relationship confirmation activities but those activities can be tracked in the order management personally we are creating the sales order in the order management only again is that order management sales orders we are performing the peak relationship confirmation even the activities we are doing in the inventory application site the same will be updated against the sales order with the help of the distributed order orchestration process nothing but workflow so this is all about o2c cycle order to cash cycle why we are calling a cycle whenever you get the order from the customer you have to follow this process you have to follow this process today you received one order from customer follow this process tomorrow you received order from another customer or same customer same process it is a kind of cycling activity repeated activity so that the reason we are calling it as order to cash cycle so that's all about o2c thank you for watching this video