What is order-to-cash?
Order-to-cash, or O2C, is the end-to-end process from receiving a customer's order to having the payment in the bank and recorded: order entry, credit check, fulfilment, invoicing, collection, cash application and reporting. It links sales, operations and finance, and its efficiency shows in how quickly a company turns sales into cash.
Also calledO2COTC
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- Starts
- Customer order or contract
- Ends
- Cash applied in the ledger
- Key measure
- Days sales outstanding
The stages of order-to-cash
Order-to-cash starts when a customer places an order, or when a contract is signed in subscription businesses. Credit control checks the customer's limit, the order is fulfilled or the service starts, and an invoice is raised on the agreed terms. Accounts receivable then collects: reminders, calls, disputes and deductions. When payment arrives it is matched to open invoices and posted, and revenue is recognised under the accounting rules. Quote-to-cash extends the process back to configuring and pricing the quote. Different systems usually own each stage, a CRM, an ERP, billing and the bank, so gaps between them cause most delays. Tabs runs billing and collections from contract terms, and Stuut, Kolleno and Monk automate collections and cash application.
Common questions
What is the difference between order-to-cash and procure-to-pay?+
They are the two sides of a trade. Order-to-cash is the seller's process, from order to collecting payment; procure-to-pay is the buyer's, from purchase request to paying the supplier.
Which teams are involved in order-to-cash?+
Sales or customer success for the order and contract, operations for fulfilment, and finance for credit, billing, collections, cash application and revenue recognition.
How is order-to-cash performance measured?+
Mainly by days sales outstanding, together with invoice accuracy, the share of invoices disputed, overdue balances by age and the time taken to apply cash.
Software used across order-to-cash
TabsContract terms driving billing, collections and revenue recognition.Profile →
StuutAI agents running collections, cash application and disputes end to end.Profile →
KollenoAI-prioritised collections, payments and reconciliation.Profile →
MonkAI-native receivables with automated collections and cash application.Profile →
FazeshiftAI agents automating accounts receivable for enterprise finance teams.Profile →
CentimeAP, AR, forecasting and banking in one cash flow view.Profile →Part of Accountio’s accounting technology coverage · Glossary
