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author's profile photo Former Member
Former Member

Is Order to Cash = Make to Order?

Hi,

I have one query about:

Is order to cash is same as Make to order ? or it is totally different functionality. I couldnt find any good resource in std SAP for order to cash but in business languuage(Job requirement, etc) there is always mentionied as Order-to-Cash.

pl guide.

I'd appreciate if anybody have good document for Order-to-cash functionality.

Thanks,

Roopan.

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2 Answers

  • author's profile photo Former Member
    Former Member
    Posted on Feb 26, 2007 at 08:49 PM

    Hi,

    Make to order is totally different from order to cash. In make to order the customer orders an item thats not there with the company and it is made specifically for the customer based on his unique requirements.

    However order to cash is a more typical process where an order is followed by a delivery and a billing and account receivable by the finance.

    Hope it helps. Please reward if useful.

    Thanks & Regards,

    Sadhu Kishore

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  • author's profile photo Former Member
    Former Member
    Posted on Feb 26, 2007 at 09:05 PM

    Order to Cash cycle is a comprehensive process which encompass broadly Order management, invoicing, collections/credit management, cash application and sometimes relating to posting and reporting.

    Traditional production systems produce products and stock them as inventory until they are sold (make-to-stock). In order to reduce inventory and increase the level of customization, some firms have designed their production systems to produce a product only after it is ordered. Such systems are referred to as make-to-order.

    hope this calrifies ur doubt.

    reward points if it is helpfull

    regards

    Biju

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