Guide to order-to-cash

By Qvalia  |  Updated September 2026

Order-to-cash (O2C) is the end-to-end process a business follows from the moment a customer places an order to the moment payment is received, covering order management, credit checks, fulfillment, shipping, invoicing, accounts receivable, payment collection, and reporting.

Your sales team has worked hard to find new clients and convince them that your solutions are ideal for their circumstances. When it comes time to order, the last thing you want is for a frustrating transaction experience to muddle an otherwise sure-fire sale.

When it comes to high-volume business-to-business (B2B) transactions, there’s a lot at stake. Having a formal and well-planned out process for B2B payments is paramount to improving your customer experience and encouraging long-time partners to continue working with you.

Improving your sales in B2B commerce is all about simplifying the customer experience, as there are many roadblocks and speed bumps along the way that you have a chance to smooth out. Customers not only have to choose the right products and services that will give them value for their money but also have to work through purchase orders, invoices, and other documentation during the ordering process. Other steps like the use of credit cards add to the cost of the process and come with extra bureaucratic burden to work through, for you and your customers.

For this reason, the finance sector has a name for all the order processing a business handles: the order-to-cash (O2C) process.

In this guide, we’ll explore what the O2C process is, why it matters, and its key components.

Order-to-cash součástí vašeho celkového prodejního procesu. Když zákazník zadá objednávku, provedete tyto kroky, abyste dodali zboží nebo služby a obdrželi platbu.

A common mistake online retailers make is treating business clients as if they were consumers. Companies make up a large part of the consumer base and have unique needs that should be addressed in O2C. B2B and B2C transactions differ in several ways:

We typically consider sales and marketing to be the steps preceding O2C as you attempt to push for conversions from potential buyers, but these efforts are not entirely absent from the O2C process either.

Similarly, even after the order is fulfilled, businesses still continue to record the activity and find new ways to optimize the procedure. These steps are also considered part of order-to-cash.

We will go into detail regarding every step of order-to-cash later on. For now, think of O2C as an umbrella term for order management, credit checks, invoicing, shipping, payment, accounting, debt collection, and other actions related to the fulfillment process.

Business-to-business refers to the business relationship between companies, for example when a company provides products, services, or both to another company in exchange for money. The customer involved is always another legal entity, organization, company, governmental organization, or NGO.

This is the case for business-to-business (B2B) payments; for example:

B2B typically involves larger cash amounts and may be, but not always, more logistically complex compared to B2C (business-to-customer). The result is a generally longer, slower process as more verifications and decisions must be made throughout.

Thanks to the rise of the “as a Service” economy, B2B transactions are likely to increase greatly in the coming years.

It should be clear as to why order-to-cash deserves attention. It directly contributes to your bottom line, whether you are selling to customers or obtaining invoices for a major purchase from another business.

By taking action regarding your order-to-cash process, you also put yourself in a position to adopt new technologies and trends that will put you ahead of the competition. For instance, roughly a quarter of B2B payments are still made by paper check rather than electronically, which leaves plenty of room for process optimization.

The exact payment methods used in these transactions depend on what the suppliers prefer, but the following are some general types. B2B is not as straightforward as B2C, as most of us rely entirely on credit cards or cash whenever we go to a store.

Invoices are the most common transactional document used by sellers. Invoices define the specifics of a transaction, including date of sale, the invoice number, both the supplier and customers full name, address, VAT identifiers, the quantity, description, price, and payment terms for the goods and services, and more.

Invoices can be paid through a variety of methods. Here are a few of the most common options:

Hotovost je dnes poměrně neobvyklá, ať už mluvíme o B2B nebo B2C. Není vždy výhodné mít k dispozici veškerou hotovost najednou a pro provedení transakce musíte být fyzicky v blízkosti svého dodavatele. Hotovost také představuje určitý bezpečnostní problém, pokud ji posíláte poštou. Nečekejte, že bude hrát významnou roli na dnešním trhu.

Just like cash, paper checks have the usual inconvenience and risk of cash. Similarly, processing checks is error-prone and time-consuming. Checks now account for just 26% of B2B payments, down from 81% two decades ago, and the method is rapidly losing traction in favor of digital options.

Wire transfers have one of the fastest processing times of any B2B payment method, as the funds can generally be used by the receiving party within 24 hours. Wire transfers can be costly to complete, but are ideal for international payments.

ACH se používá při přímém převodu peněz z jednoho bankovního účtu na druhý. Vzhledem k množství papírování, které s tím souvisí, se pravděpodobně nepoužívá pro jednorázové nákupy, ale vyniká při opakovaných platbách. Je totiž relativně rychlý a má nízké poplatky. Mějte však na paměti, že je k dispozici pouze ve Spojených státech a v případě chyby může být obtížné ji zvrátit. Existují také obavy o ochranu soukromí, protože k provedení převodu musíte sdílet informace o svém bankovním účtu.

Credit cards and ACH are already some examples of electronic payments, but another that’s gaining attention in the B2B space is the virtual card. It’s generally free of fees, fast to use, and secure. Expect to see it in the near future for business transactions. As with any credit card, one of the main downsides is the processing fees.

Někteří poskytovatelé služeb fungují jako prostředníci mezi odesílatelem a příjemcem peněz. Poskytovatel platební brány shromáždí peníze a bezpečně je uloží na místě určení. Známým příkladem, který možná znáte, je Stripe. Platební brány lze použít jak pro jednorázové, tak pro opakované transakce, ale mějte na paměti, že při jejich používání se spoléháte na odborné znalosti poskytovatele platební brány.

Payment solutions optimized for business customers, with capabilities to send invoices in various formats upon checkout. Authentication of customers can be managed via integrated workflow apps or mandatory accounts with secure log-ins.

order-to-cash lze rozdělit do následujících obecných kroků: správa objednávek, správa úvěrů, plnění, expedice, fakturace, pohledávky, inkaso plateb a reporting.

order-to-cash začíná v okamžiku, kdy zákazník zadá objednávku, která může mít následující formu:

Regardless, the order management phase begins here. Use automation to notify everyone involved about the order and the next steps for it. Only then can you ensure fast fulfillment and order accuracy. The result will ultimately be a satisfied customer and more revenue for you.

Pokud se jedná o první nákup konkrétního zákazníka, může být vhodné provést kontrolu bonity. Automatizace může pomoci vyřídit většinu práce, zatímco finanční zaměstnanci se mohou věnovat případům, které vyžadují komplexnější dohled.

Správa úvěrů je z velké části úkolem oddělení pohledávek, protože umožňuje kvalifikovaným zákazníkům přejít k plnění a zároveň zajišťuje, že vaše společnost poskytuje úvěry pouze v případě, že je to nutné.

Automatizační řešení jsou v tomto případě smysluplná, protože umožňují vést záznamy v reálném čase, když je to potřeba. Mohou také pomoci digitalizovat vaše objednávky, aby byly relevantní údaje vždy čitelné. Zpracování objednávek tradičním papírovým způsobem může vést k chybám a neefektivitě.

V případě, že nemůžete splnit objednávku, informujte zákazníka a vystavte zrušení, abyste předešli dalším frustracím souvisejícím s fakturací.

Z pohledu prodejce je rozumné zavést správné postupy pro správu zásob, aby nedošlo k vyprodání zásob v okamžiku, kdy přijde nová objednávka.

Fáze expedice v rámci order-to-cash do značné míry na přesné logistice, která zajišťuje spolehlivost a rychlost. Doba expedice a harmonogramy vyzvednutí jsou důležité pro to, aby se objednávky dostaly k zákazníkům včas.

Zpoždění při fakturaci jsou známá tím, že kazí zákaznickou zkušenost. Zpoždění a nepřesnosti jsou nepříjemné pro všechny, proto vám kontrola fakturačního procesu pomůže naplánovat cash flow a minimalizovat frustraci klientů.

The rapidly accelerating shift from analog invoice formats to e-invoicing moves the paperwork into the digital workspace. By utilizing completely digital formats, and emerging exchange networks for business documents such as Peppol, the digital management provides greater efficiency and gives you more control over the content and accuracy of your invoices. The advantages of e-invoicing are numerous:

Oddělení pohledávek je zodpovědné za dohled nad neuhrazenými fakturami a řešení případných chyb, které by mohly způsobit zpoždění platby. Zaměstnanci tohoto oddělení se obvykle musí podrobně seznámit s údaji v order-to-cash , aby mohli co nejdříve vystavit opravenou fakturu.

Právě z tohoto důvodu se dostala do popředí automatizace fakturace. Faktury vyžadují značné množství ruční práce a zadávání údajů, včetně data objednávky, dodacích lhůt, specifikací produktů a dalších informací. Snížení této zátěže pro vaše zaměstnance vede k významnému zlepšení výkonnosti.

Pokud je vaše oddělení pohledávek dostatečně efektivní, bude zpracovávat platby od zákazníků dostatečně rychle, aby je váš proces O2C mohl přijmout. V opačném případě riskujete, že dojde k napětí ve vztazích s vašimi klienty a v dlouhodobém horizontu narušíte odhady cash flow.

On the other side, you also have to plan for customers being late on their own payments. In this case, the system must automatically notify those clients if they attempt to make further purchases. Your finance teams must similarly review overdue payments and make decisions based on debt forecasts.

Because invoices often have long payment terms that cause issues with cash flow, companies that sell in B2B markets consult with factoring companies. Factoring is the practice of buying up unpaid invoices at a discounted price so that the owner of the invoices gets the cash faster.

Once a factoring provider receives the invoice, that firm takes over the payment process for the invoice. Factoring makes sense when you’re okay with a lower amount as long as you receive it in a shorter time frame. In other words, you are accelerating cash flow by accepting the money before your client has finished paying off the invoice.

Povědomí o tom, co se děje ve vašem order-to-cash , je důležité, protože vám umožňuje pochopit, jak tyto finanční aktivity ovlivňují zbytek vaší společnosti:

Proto má mnoho softwarových programů zabudované funkce pro reporting a analytiku. Proces Order-to-cash velmi propojený; jeden zpožděný krok může způsobit problémy ve všech ostatních fázích. Management často používá reportingové nástroje k odhalení drobných problémů a jejich řešení, aby se celkově zlepšil proces O2C.

Businesses must frequently monitor all aspects of the order-to-cash process to make sure everything’s running properly and efficiently. There are several common metrics that experienced management teams look for in this regard.

Also known as DSO, the day’s sales outstanding metric shows us how long it takes for the business to receive the payment after a sale is made. Cash flow can be challenging to keep track of, and managers running the company on credit must know this figure to keep debt in check and track earnings accurately.

How much is the order-to-cash process contributing to the total revenue of the business? The higher this figure is, the more you are earning from selling products as opposed to other sources of income. Most management teams would obviously prefer to maximize this value, and it typically takes the form of a percentage of total revenue.

Full-time equivalent (FTE) is a measure of an employee’s workload. It matters for O2C because you want to know the individual productivity of each staff member related to sales.

If the workload is too high for the number of employees on site, then you have an indicator to assign more staff to that task. Likewise, you might want to drop some people if there are too many.

Měření FTE je způsob, jak optimalizovat vaše současné náklady a pomoci plánovat budoucnost, kdy budete muset rozhodnout, kolik zaměstnanců budete potřebovat pro budoucí projekt.

We’ve mentioned before that reporting and analytics matters in the order-to-cash process, whether we’re looking at the supply chain, the inventory management, the manufacturing, or the logistics.

Regular reports give you an up-to-date picture of how smoothly everything is running and allow you to track key performance indicators directly related to O2C.

Tying into the last point, it’s clear that O2C relies heavily on paperwork, data entry, and analytics. These three tasks are all much faster and more reliable on automated software-based solutions as opposed to traditional manual methods. Adopting automation allows you to increase your throughput, minimize delays, and lower the risk of error. It also often results in better analytics and reporting capabilities. So don’t neglect keeping track of your automation rate and automation potential.

Order-to-cash is an essential process, but it’s not without its difficulties. B2B payments can be a hassle to file efficiently for several reasons.

We’re talking about paperwork. From checks to cash, the traditional methods of payment are just too slow for modern-day operations, yet they still make up 26% of all B2B transactions. Converting to digital is an inevitable change that will take some work to get going.

Velká část fakturace prováděné v rámci order-to-cash mnoho rutinního zadávání dat a fyzické papírování. Podniky se snaží najít rovnováhu mezi těmito typy úkolů a důležitějšími pracemi, kterým by se zaměstnanci mohli věnovat. Část přitažlivosti finanční automatizace spočívá v uvolnění času během dne pro jiné úkoly, jako je strategické plánování.

Hlavním důsledkem výše uvedených dvou problémů je obecně pomalejší proces O2C. Pokud tento pracovní postup nedokážete zrychlit, riskujete zpoždění nebo nevyužití slev za včasnou platbu.

U velkých B2B transakcí může trvat několik dní, než je objednávka zadána a než se peníze objeví na druhém účtu. Jak zajistíte, aby byl váš cash flow nastaven tak, aby tuto dobu čekání umožňoval?

A lot of payment methods require some type of added processing cost, which can add up especially when you have recurring payments. You will have to factor those in when doing your financial planning.

Protecting the sensitive data shared during a transaction matters, as you don’t want to lose the trust of your customers, merchants, or business partners.

Sledování toku peněz je důležité pro zachování přehlednosti během transakcí a kontrolu potenciálních chyb, přesto mnoho podniků nemá k dispozici vhodné systémy, které by to umožňovaly.

Invoicing software rarely include support for checkout solutions, and traditional payment gateways are, with few exceptions, not optimized for the needs of B2B transactions.

A recurring theme of this guide is the role of automation in solving many of the issues companies today are experiencing with regards to the order-to-cash process.

In addition to the reduced fees of using virtual cards, handling invoices through a B2B payment solution can result in several dollars saved each invoice. These amounts add up for companies managing a lot of orders.

Automation always results in better efficiency, but don’t expect it to take over your employees’ jobs entirely. These solutions aim to supplement the workflow so that human staff can focus on more interesting, and value creating, parts of the job.

Having full visibility into the activities of accounts payable and receivable gives you more options for tracking down payment statuses, managing cash flow, and finding new ways to optimize the entire process.

The threat of cybercrime is always on our mind, but thankfully many O2C solutions have responded with their own built-in security features to protect against fraud, non-compliance, and other potential threats.

Optimal O2C management lies in having access and control over every step of the process at all times. You’ll also need all the extra tools like digital invoicing, support for e-commerce solutions, payment reconciliation, and automated shipping notifications. Only recently have dedicated financial platforms arisen to allow this type of management in today’s workflows.

Order-to-cash includes all the activities, tools, and processes businesses undergo to fulfill an order from a customer. From initial purchase to delivery and the data analytics afterwards, there’s a lot that goes into this complex yet essential process.

Companies that master O2C often experience improved customer satisfaction due to fewer payment delays and setbacks. For instance, having a user-friendly B2B payment gateway in place like Qvalia’s Autobilling on your e-commerce website helps B2B customers place orders without any phone calls, expense reporting procedures, or credit cards. Fewer potential points of frustration mean better sales figures.

Automation has also helped a broad range of businesses achieve reliable O2C processes by eliminating menial tasks and facilitating comprehensive visibility, which in turn results in more ways to optimize B2B transactions.