O2C
Order-to-Cash
The process from receiving a customer order, through invoicing and delivery, to the payment being credited to the company's bank account.
What is O2C?
O2C (Order-to-Cash) is the end-to-end process on the sales side — a mirror image of P2P. It covers all steps from receiving a customer order to the payment being credited to the bank account:
- Order receipt (from webshop, phone, email, EDI)
- Customer credit check
- Order confirmation and inventory allocation
- Dispatch and delivery
- Invoicing (including VAT)
- Receivables recording
- Collection and payment posting
- Processing returns and credit notes
Key O2C process KPIs: DSO (Days Sales Outstanding) — the average number of days until a customer pays an invoice; overdue ratio and order-to-delivery time.
When it is used
O2C is the daily process of every B2B company. Weak points: inaccurate invoicing (requiring corrections), late collection (tying up cash flow), and lack of visibility for the salesperson (not knowing when the customer actually paid).
See the Invoicing module, the Warehouse module, and the Accounting module.
Related terms
- P2P — the mirror process on the procurement side. See /en/glossary/p2p.
- e-Invoice — a structured invoice that accelerates O2C. See /en/glossary/e-invoice.
- DPH / VAT — must be correctly calculated at every O2C output step. See /en/glossary/dph.
- SEPA — the common payment instrument in the final stage. See /en/glossary/sepa.
In Modulario
Modulario covers the O2C process by connecting CRM (orders and deals), Warehouse (reservation and dispatch), Invoicing (issuance and VAT), and Accounting (payment matching from bank statement). The dashboard displays DSO, overdue receivables, and automatically sends reminders to customers.
Specifically: after an order is confirmed in CRM, the system reserves stock in the warehouse, generates a proforma invoice, and automatically issues the final invoice with a QR payment code after dispatch. For unpaid invoices, an escalation starts according to the configured policy (1st reminder on day 7 after due date, 2nd on day 14, 3rd with a pre-legal notice on day 30), with the salesperson notified via Workflows.
Typical O2C KPIs that management should know: DSO below 45 days for B2B, overdue invoice ratio below 10% of receivables volume, and order-to-delivery below 3 days for standard items. Deviations signal a problem — typically with credit policy or logistics capacity.
Related terms
P2P
End-to-end process from raising a purchase requisition, through the purchase order, delivery and invoice receipt, to payment to the supplier.
DPH
An indirect consumption tax added to the selling price of goods and services — in Slovakia the rates are 23%, 19% and 5% (2025).
e-Invoice
A structured electronic invoice in XML/UBL format that can be processed automatically without manual re-keying.
IBAN
An internationally standardised bank account number — in Slovakia 24 characters, beginning with the country code SK.
SEPA
The unified euro payments zone — a zone of 36 countries in which cashless EUR transfers take place under identical conditions.
Related Modulario modules
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