Quote-to-cash process explained: Steps, challenges, and improvements

QTC involves a variety of activities and many departments across the organization—which has traditionally led to unnecessary siloes and inefficiencies. Fortunately, today’s technology makes it possible to streamline and automate the QTC process, increase efficiency, and drive better business results. The order-to-cash cycle describes the basic sales cycle universal to business.

Business Process Analysis Template PowerPoint

It’s a crucial phase of the process because any inconsistencies that make their way into the quote at this early stage can be costly down the line. Companies that have succeeded in this area have segmented out this simplicity and worked on improving processes there first. Frequently and encouragingly, if 50 percent of sales volume may be considered standardizable in the first year, this may rise to 80 to 90 percent one or two years into the transformation. In other words, change in this area is a sizable job to begin with, but successful standardization breeds its own wisdom and know-how, which helps organizations tackle most of the remainder. By harnessing the capabilities of SAP MM, businesses can gain better control over procurement, inventory management, and vendor collaboration.

Why Logik.io is the Solution for Quote to Cash

It considers the steps taken as your sales team configures a quote and drafts a proposal for a client, through to when payment is received for services rendered. In the billing phase of the QTC process, charges are calculated and invoices are sent to the customer to ensure on-time payment. Accurate billing is critical to your company’s success, as it plays a role in managing cash flow and creating reliable sales forecasts. Historically, these processes have been disconnected and siloed because they’ve been managed in multiple files and systems.

• SAP Quote to Cash (QTC) refers to the end-to-end business process that encompasses the entire sales lifecycle ecosystem.
• This shouldn’t be confused with the Procure-to-Pay or P2P cycle in Oracle apps which begins with your raw material procurement and extends until you pay the supplier.
• Many businesses struggle to streamline their quote-to-cash process, leading to many challenges.
• From configuration to pricing and pricing to quotes, Logik.io helps you close deals.

Order management and fulfillment

With a hands-on approach and a commitment to delivering results, we partner with our clients to enable impactful digital transformation and future-ready business solutions. If you learn best from a combination of written explanations with visuals to demonstrate, there’s a simple solution to find what you need. If you use search terms like “Oracle order-to-cash process flow ppt” you should be able to find what you need quickly and easily. A simple article listing the quote-to-cash process steps and explaining what quote-to-cash process each step entails may not work for everyone.

Many businesses struggle to streamline their quote-to-cash process, leading to many challenges. This negatively affects the bottom line due to missed opportunities, delays in payments, and poor customer experience. It is important to online bookkeeping streamline the QTC process to ensure visibility across all stages such as the pricing, quote agreement, and contract terms. Payments can be made through offline or online methods, depending on your customer.

Detailed pricing information is updated in real time throughout your systems, so you can always be confident that your customers will receive accurate information. Even if your pricing structure is relatively simple, there is still a chance your salespeople may misquote clients, which can compromise their relationship with a prospect. Sales reps should always be up to date on their product education, but they have to place the bulk of their focus on delivering sustained customer value. It’s not feasible for them to memorize every single discount scenario for every SKU in your product line. QTC isn’t owned by a single person or department, but by multiple teams, including sales, legal, operations, finance, and more.

When a customer accepts your quotation and makes a purchase order, create a sales order based on the accepted quotation. Schedule an in-depth look at Acumatica and get a real feel for how it will help you achieve business objectives and solve challenges. Now, however, you can simultaneously track and holistically analyze numerous performance metrics throughout the QTC process in one software system. You can free your metrics from their self-contained boxes so that they provide maximum value to every unit that participates in QTC, and to the organization as a whole.

Then Develop the Offer Price and Project Quote

• A slow or dysfunctional approvals process can put both an engagement and the overall customer relationship at risk.
• The final phase of the QTC process is managing customer retention and recurring revenue.
• Understanding which engagements are at risk, which are on target, and which are ahead of schedule (and why) helps organizations pivot when needed.
• Billing becomes easier with a seamlessly integrated QTC process, because everything captured in the quote (discounts, billing timeframes, etc.) and the contract is automatically passed on to your accounting team.
• Manual management of this process requires sales reps to initiate the quote process from scratch if prices change, add-ons are requested, or the renewal order is updated.
• But with a seamless QTC process, organizations see better customer retention and more customer loyalty.
• Accurate revenue recognition is crucial for a company’s financial reporting integrity.

Discover how Sales Cloud uses data and AI to help you build relationships and close deals fast.

It is larger in scope than the Order-to-cash or OTC process, which deals mainly with order fulfillment. Of course, these customer-centric tasks are interdependent and should be tied together in a single business process that is best facilitated with software. Whether you want to improve your sales team’s productivity, increase your conversion rates, or optimize your cash flow, the Quote to Cash PowerPoint Template in Timeline law firm chart of accounts has everything you need to succeed. With its intuitive interface and customizable design, this quote to cash process flow chart template is perfect for businesses of all sizes and industries. This PowerPoint template has ten sections to create a detailed sales process presentation. QTC covers the entire sales process ecosystem, from the initial customer inquiry or request for a quote right down to the payment receipt, encompassing both the quoting and order fulfillment aspects.