What is “Order To Cash” in Oracle?

Order to cash normally refer to the process in which taking customer sale order via
different sales channel like email, internet, sales person, fax or by some other means
like EDI, and then fulfilling the order, shipping, logistic and then generating an invoice
and collecting payment for that invoice and then receipt. if we consider the flow ,this
can be further categorize into seven sub-process like

• Customer
• Order entry (creation of order /booking of order )
• Order fulfillment
• Distribution
• Invoicing
• Customer payments /Collection
• Receipt

A typical flow can be best represented as:

Understanding data flow for “Standard Order”

Here are the information for data flow:

Normally standard sales order can be split into nine sub steps , which jointly carried
out by some module like INV,OM, Pricing, Shipping and AR. Lets take each sub steps
with data flow conditions. These are based out of the flow which is available in
11.5.10.2.

1. Order Entry

This is first stage when Order in enter in system.When the order is entered it basically
create a record in order headers and Order Lines table.

• oe_order_headers_all (Here the flow_status_code as entered)

 • oe_order_lines_all (flow_status_code as entered) ( order
number is generated)

2.Order Booking

This is next stage , when Order which is entered in step 1 is

booked and Flow status changed from Entered to Booked.At this
stage , these table get affected.

• oe_order_headers_all (flow_status_code as booked

,booked_flag updated)
• oe_order_lines_all (flow_status_code as awaiting shipping,
booked_flag updated)
• wsh_new_deliveries (status_code OP open)
• wsh_delivery_details (released_status ready to release)

Same time, Demand interface program runs in background And

insert into inventory tables mtl_demand

3. Reservation

This step is required for doing reservations SCHEDULE ORDER

PROGRAM runs in the background and quantities are
reserved.Once this program get successfully get completed , the
mtl_reservations table get updated.

4. Pick Release

Ideally pick release is the process which is defined in which the

items on the sales order are taken out from inventory.

Normally pick release SRS program runs in background . Once the

program get completed these are the table get affected:

• oe_order_lines_all (flow_status_code PICKED )

• wsh_delivery_details (released_status S submitted for
release)
• mtl_txn_request_headers
• mtl_txn_request_lines
(move order tables.Here request is generated to move
item from saleble to staging sub inventory)
• Mtl_material_transactions_temp (link to above tables through
move_order_header_id/line_id

5.Pick Confirm

Items are transferred from saleble to staging Subinventory.

 • mtl_material_transactions
• mtl_transaction_accounts
• wsh_delivery_details (released_status Released)
• wsh_delivery_assignments

6.Ship Confirm

Here ship confirm interface program runs in background. Data removed from
wsh_new_deliveries

• oe_order_lines_all (flow_status_code shipped)

• wsh_delivery_details (released_status Shipped)
• mtl_transaction_interface
• mtl_material_transactions(linked through Transaction source header id)
• mtl_transaction_accounts
• Data deleted from mtl_demand,mtl_reservations
• Item deducted from mtl_onhand_quantities

7.Enter Invoice

This is also called Receivables interface, that mean information moved to accounting
area for invoicing details.

• Invoicing workflow activity transfers shipped item information to Oracle

Receivables.
• ra_interface_lines_all (interface table into which the data is transferred from
order management)T
• Then Autoinvoice program imports data from this

• Table which get affected into this stage are recievables base table.
o ra_customer_trx_all (cust_trx_id is primary key to link it to trx_lines
table and trx_number is the invoice number)
o ra_customer_trx_lines_all (line_attribute_1 and line_attribute_6 are
linked to header_id (or order number) and line_id of the orders)

8.Complete Line

In this stage order line level table get updated with Flow status and open flag.

• oe_order_lines_all (flow_status_code shipped, open_flag N )

9.Close Order

This is last step of Order Processing . In this stage only oe_order_lines_all table get
updated.

These are the table get affected in this step.

• oe_order_lines_all (flow_status_code closed,open_flag N)

These are the typically data flow of a order to cash model for a standard order.

Quick notes : ‘Order 2 Cash’ Cycle

Things you should Know about Order to Cash Cycle.

Order Management

• You enter sales and return orders within an operating unit.

• You define price list and discount names for the entire instance. You can also
define price list lines, discount lines, and quantity breaks for the entire
instance. If you have more than one validation organization in the instance, you
may experience error messages when querying a price list if the inventory item
is not valid in your operating unit’s OM validation organization. Thus it is best
to define price lists by operating unit.
• You can check credit within an operating unit.
• You assign order lines and shipments to a specific warehouse (inventory
organization).
• You pick release orders and print pick slips by operating unit.
• You ship confirm orders and print shipping documents by inventory
organization. You can ship from another operating unit, even if in a different
set of books.
• You receive returned goods in the inventory organization specified on the
return.
• Inventory and Manufacturing integration functions, such as reservations,
available to promise checking, sales order demand, and assemble to order job
creation are processed in the appropriate inventory organization.

Order Management /Account Receivable

• You setup customers for the entire instance but addresses for each operating
unit.
• You merge customers and addresses within an operating unit.
• You report supplier/customer netting within an operating unit.

Account Receivable

• You setup receivable account defaults within an operating unit.

• You produce invoices, statements, and dunning letters within an operating
unit.
• You enter and track customer commitments within an operating unit.
• You setup bank accounts and associated cash accounts within an operating unit
till Release 11i, as subsequent changes has been made in R12.
• Till Release 11i you can enter deposits and individual receipts by bank account
within an operating unit.