Accounts Receivable – O2C

Order to Cash – Accounts Receivable

O2C Process: Accounts receivable is money owed to a business by its clients (customers or debtors) and shown on its balance sheet as an asset. Selling goods or providing services to customers and receiving payment against the bill is the basic and one of the most important business functions in any organization. This function is the part of core Order to Cash Process (O2C cycle) and is taken care in Accounts Receivable Department. In other terms it is also known as Bills Receivable or Sundry Debtors which appears under current asset in Balance Sheet.

• Raising customer Invoice
• Raising debit or credit memo and pro forma invoice
• Generating Dunning Report and Outstanding follow up
• Debtors aging analysis
• Cash applications against open invoice
• Customer account reconciliation

Customer Master file Maintenance

• Customer Master File, SSC will receive notification from Local Finance (Client Head Office) for a new customer to be setup. Amendments to customer details received at SSC.
• New customer request.
• Set credit limit criteria & agree exceptions.
• Credit Control Assessment.
• Customer database maintenance.
• Amend customer Records.
• Housekeep customer records.

Sales Ordering – Service Departments raise sales orders for all Goods & Services.

• Raise sales orders.
• Deliver goods and services.

Deliver Goods/Services – Service Departments deliver goods & services –system to trigger sales invoices. Sales Invoice Processing– SSC will generate invoices centrally and dispatch electronically or via automatic mail room.

• Generate sales invoices.
• Dispatch invoices.
• Issue statements.

Credit Control – Debt chasing with automated scheduling software. Clear rules based escalations process for dispute resolution. Automated bad debt provisioning and write-offs within tolerance. Electronic links with legal to effectively chase old debts.

• Chase debts.
• Respond to queries.
• Process adjustments within agreed rules/tolerance.
• Dispute resolution and agree adjustments to debts outside tolerance.
• Bad debt provisioning.
• Issue reminders.

AR Reconciliation – Integrated system should ensure integrity. Customer statement reconciliations available online.

• Deal with legal.
• Close AR period.
• Run & Issue AR reports.

Cash Application Processing

• Apply cash against customer account.
• Process journal adjustments eg bank charges/ write offs.
• Bank reconciliations.
• Bank checks and transmit banking details to SSC to apply to Sales ledger.

AR Reporting AR Debtors ageing debt reports available online.

Customer Related Queries Service departments & supplier’s information and queries will be satisfied with secure web online access for up to date status.

Control/Stewardship SSC will coordinate the external auditing and will provide information when required in coordination with Local Finance