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CS Professional · Artificial Intelligence, Data Analytics and Cyber Security - Laws and Practice · Enterprise Resource Management

A company's ERP records a sales invoice in the sales and distribution module. Which sequence correctly represents the usual order-to-cash flow across modules?

The usual order-to-cash sequence is sales order, delivery, invoice, and then receipt of payment posted in accounts receivable. Each step is handled by sales, warehouse, billing and finance modules, so the other orderings are incorrect.

  1. AInvoice, delivery, sales order, customer payment receipt
  2. BSales order, delivery, invoice, receipt posted in accounts receivableCorrect
  3. CCustomer payment, sales order, delivery, invoice
  4. DDelivery, customer payment, sales order, invoice

Explanation

The standard order-to-cash cycle runs from sales order to delivery or goods issue, then billing, and finally payment clearing in accounts receivable. The other sequences place invoicing or payment before the order or delivery, which breaks the normal process.

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