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O2C Automation

Order-to-cash (O2C) automation is the use of software to eliminate manual processes across the O2C cycle. These include:

  • Order management 
  • Credit management 
  • Fulfillment
  • Shipping
  • Invoicing 
  • Accounts Receivable (AR)
  • Collections
  • Reporting 

Businesses that automate workflows in their O2C cycle enjoy negligible error rates, reduced revenue leakage, lower days sales outstanding (DSA) timelines, higher customer satisfaction and many other benefits.

Related terms

Accrual Accounting
Accrual accounting is an accounting strategy that records payments and expenses when they are earned and incurred. This is different from cash accounting where revenue is recognized when it is actually deposited or transferred. 
Advanced Billing
Advanced billing refers to sophisticated billing practices or capabilities that go beyond basic billing functionalities to address complex billing scenarios, accommodate specialized pricing structures, and support advanced revenue recognition requirements.
Advanced Revenue Management (ARM)
Advanced Revenue Management (ARM) refers to a set of strategies and practices used by businesses to automate, streamline, and ensure accurate revenue recognition according to accounting standards.
Annual Contract Value (ACV)
Annual Contract Value (ACV) is a metric used to assess the average yearly revenue generated by a single customer contract. It helps businesses understand the annualized worth of their customer base, focusing on recurring revenue streams.
Automated Cash Application
Automated cash application (also known as automated cash posting or automated cash matching) is a process in accounting and financial management that uses technology and algorithms to match incoming payments or cash receipts with corresponding invoices or accounts receivable entries in an organization's financial records.
Automated Clearing House (ACH)
An Automated Clearing House (ACH) is an electronic network that facilitates the transfer of funds between bank accounts in the United States (and internationally with some variations).