Emagia
JANUARY 30, 2023
Order-to-Cash (OTC or O2C) is arguably one of the business processes most CFOs have a keen eye on, as it affects the three strategic goals of an enterprise, viz., topline, bottom line, and cash flow. Cash Application: Payments collected must be applied against the proper invoice of the relevant customer.
Your Virtual Credit Manager
OCTOBER 17, 2023
Not being paid in full or in part causes a bad debt loss. The first step is to estimate how much bad debt loss you can absorb as a percentage of sales in a year. Conversely, if the profit margin is low, bad debt losses will have a much greater impact, and credit controls will have to be tighter.
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Your Virtual Credit Manager
JANUARY 3, 2023
” This junk AR comes in a variety of forms, such as: Short payment/deductions Debit memos Unapplied credit memos Unapplied cash Late payment fees and other surcharges Early payment discounts taken but not deserved Clutter obscures the true amount a customer owes and causes confusion.
Your Virtual Credit Manager
JANUARY 17, 2023
There was a lot of gnashing of teeth on the part of the sales team at the beginning, but invoice accuracy improved in each subsequent month as sales began transmitting accurate pricing and terms to order processing, thereby reducing downstream disputes and payment deductions. it just might help them pay you sooner!
Your Virtual Credit Manager
SEPTEMBER 12, 2023
To make matters worse, invoice errors also tend to generate payment deductions (partial payments). Correcting invoices and reconciling payment deductions are essentially rework: work that is not necessary if you got it right the first time. To make matters worse, most payment posting errors will involve deductions.
Your Virtual Credit Manager
JANUARY 9, 2024
In contrast, profit driven enterprises often miss opportunities because they are too restrictive out of a fear of bad debt losses. Share Streamlining Processes and Workflows Another area where being proactive can reduce downstream issues involves your order-to-cash (O2C) process and the tasks associated with it.
Your Virtual Credit Manager
APRIL 11, 2023
In fact, a hands off approach will only serve to compound the weaknesses in your order-to-cash (O2C) process. Sometimes the errors are in the billing process, but they can also result due to missteps in the order fulfillment process. Accounts Receivables (AR) require active management. Laissez-faire doesn’t cut it.
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