The basic order to cash cycle can be represented as this image shows:
Managing the order to cash cycle effectively helps you improve your working capital position. There are a number of specific areas to focus on that can really improve your cash cycle:
- Promptly and accurately enter sales orders into your ERP system, and immediately schedule them for fulfillment and shipping
- Invoice shipments in a timely manner and distribute invoices in a format and manner your customers desire
- Continuously monitor outstanding receivables, hold customers to payment terms, resolve discrepancies quickly
- Record cash receipts and deposit receipts on a daily basis
A decent ERP system can help you keep on top of your order-to-cash cycle and improve your cash position.
This video set shows you how to use Dynamics GP to facilitate this process: http://youtu.be/O4mNXR_IyKs