Reaping Benefits From An Automation Solution For Order To Cash
AUTOMATION SOLUTION FOR ORDER TO CASH
The first step should be to configure the system to facilitate an optimum order management. This entails setting up the system to collect orders, manage the regulation associated with the order (line items, customer data, payment information, invoices etc), and draft contracts for clients. It is equally important to configure the system for smooth integration of orders into back-office processes.
Step 2: Automated Financial Transactions The next stage involves automating every financial transaction associated with OTC process. It means that the system should be configured to take into account different facets such as customers’ payment options and their preferences in terms of payment, billing, and other related aspects. The system should be well integrated with the companies accounts receivable department for accurate charge handling and automobile induced cash application. In addition, in the event of dispute, the system should validate disputed orders to prepare an automated response to the customer.
Step 3: Automated Invoice Management The process should also automate the management of invoices as this is an important aspect of an OTC process. Automating the invoice management feature enables enterprises to streamline their invoicing flow, obtain timely payments from customers, and reduce the amount of manual labor required to process invoices. Furthermore, user-friendly invoice management software should provide options for customers to securely view, download and pay their invoices.
Step 4: Contract Management For every order placed, enterprises must draft contract. This should include their terms and conditions, product specifications, delivery dates, and other relevant details. An automated contract management system should be used to initiate and negotiate contracts and have these signed off swiftly. Moreover, the system should effectively track the expiry date of contracts and take the initiative to initiate renewal before the due date.
Step 5: Automated Collection Process In many cases, customers take extended periods of time to settle their accounts. Enterprises can adopt an automated collection process to ensure that customers are sent timely reminders to fulfill their commitments. The automated process should be capable of sending email/text notifications and instituting charges for overdue payments.
Although automation helps to reduce the duration and complexity of OTC processes, the speed of automation depends on the type of solution adopted. successfully implemented OTC solution can streamline overall processes, speed up revenue recognition, and reduce the manual workload associated with OTC processes. This helps companies, especially in the automotive, aviation, logistic, and manufacturing sectors, to harness the power of an automated platform to run their businesses more effectively and efficiently.
