Order-to-Cash: the front of the pipe

Order-to-Cash: the front of the pipeyour starting beachhead

O2C is the named first project, so know every stage cold. Each handoff between stages is a place data can drift and drift in O2C is what produces wrong invoices and revenue leakage.

1. 1CPQ / quote. Sales configures price and terms in CPQ; the commercial contract is born here.
2. 2Order. The quote becomes a booked order with the terms that will govern billing and rev rec.
3. 3Provisioning / entitlement. The customer gets access and a usage entitlement - the meter starts.
4. 4Usage metering. Tokens, requests or seats are measured continuously and aggregated for a period.
5. 5Invoicing. Metered usage plus subscription fees are rated and turned into an invoice.
6. 6Payment. The customer pays; the funds land in a bank or processor.
7. 7Cash application. Payments are matched to invoices, often many-to-many and never perfectly clean.
8. 8Collections / dunning. Overdue invoices get chased through an automated dunning sequence.