Training Overview
Process Flows
Example of Order to Cash Transaction

Process Flows

Lesson #


Example of Order to Cash Transaction

In this follow up video to the Order to Cash Process Flow lesson, we walk through the entire Order to Cash cycle within NetSuite.

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Video Transcript

Welcome back. In the last video, I showed you the order to cash process flow. In this video I'm going to show you in Netsuite how the order to cash process flow can occur. So let's take a look at this.

So here we are in the home dashboard. So let's go over to this new icon here and let's make a sales order, which is the beginning of the order to cash cycle. Now, I'm not going to go into all the nitty gritty of this. There are other videos that cover how to fill out sales orders. But just understand that we're on this page and this is the first step of the cycle.

So first off, in our example, right, we're Dunder-Mifflin. We're selling paper to ABC company. So let's fill this out with the key information. If we put it as ABC company customer. Okay, so we have the customer set up and we need to set what location is going to be supplying the paper.

And then notice over here, it says pending approval. If it's set up in your company where maybe a supervisor, a manager has to approve a sales order, you will have it go through this status. In this case, just for simplicity, we're going to change it to pending fulfillment, meaning we're skipping the approval, we're going straight to fulfillment. And if we go down.

So here we need to specify what exactly is the item that's being purchase. So we talked about it being letter paper. And notice it comes in reams of paper and it gives the basic data like how much does a ream of paper costs? There's a minimum quantity that it just fills in. But in this case, we don't want to just do the minimum. We talked about sending 50 reams. So we're going to put 50. And then it updates the amount. It also says how much is available at that warehouse that we set earlier. So we have all that information there and we can add that.

And we can go to save. So we now have a confirmation that our sales order for the 50 reams is pending fulfillment. So we know the sales order was done and we've now moved on to the fulfillment stage.

So now we're going to go hit this fulfill button and it takes us to the fulfillment record. So there's a lot of information here, but we'll keep it pretty simple. The one thing I do want to talk about is this status button here. I mentioned the pick pack ship aspect. And just again, so you understand, imagine you're in a big warehouse if someone orders 50 reams of paper and let's say a couple pairs of scissors and some sharpies. Someone needs to go into that warehouse and actually pick 50 reams of paper off the shelf, get the Sharpies, get the scissors and put them together. That would be the picking aspects and then put them together, make sure that they're in the right packaging. Maybe it needs to go in boxes, maybe has to go on a pallet and get wrapped up. That would be the packing aspect. And then once it's fully packed, it gets put through ocean freighter, maybe through a truck, and it goes out to the final location. So that's the shipping aspect. And those three together make up the fulfillment process.

So for this, I'm just going to skip the pick packing shipped. We'll cover that in separate videos, but we're just going to show that it's shipped and we'll hit save. Okay, So I have confirmation that the item fulfillment was completed and it was shipped.

So now the next step in the order to cash process is to build right? We're going to send the invoice. So we click that bill button and it automatically pulls up an invoice record. So it fills in with all the key data, although you can't fill in more. But there's nothing we want to touch from this standpoint. We've got everything we need. We can see that it's letter paper, 50 reams. So we're going to hit save.

Okay, good. So we have that invoice now made and the invoice has gone out to ABC Company. And then at some point, we would receive a payment from ABC Company. And when we do, we have this button over here saying accept payment. So let's click on that.

At this point, we get to a new record. This is the payment record, which is showing that we actually receive payment from ABC Company. And it will require us to specify how we're receiving that payment. So let's click on payment method. You can do anything, you can be cash, credit card, etc.. Let's keep it simple and just say they sent us a check and put in a check number and let's hit save.

So we got our check from ABC Company for the $500 plus tax for this shipment and we get a confirmation that the transaction was successfully saved and that it's been deposited. This money we received from ABC Company.

So that's the simplicity of the order to cash process flow. Again. There's a number of other videos we have that really get into the nitty gritty and some of the details of how you can customize things, some of the options you have for all of the different stages of that process of order to cash. But this is just a general example of how something would flow through the line. And as you can see, it is quite simple. And that's it. On this example of the order to cash process flow. I'll see you in the next video.