BPM Short Course Portal

1. Purpose

This page defines the generic best-practice Order to Cash Stakeholder Operating Model — who is responsible, what approvals are required, typical SLAs, and what action follows each notification.

For the company-specific version, see SD Stakeholder Operating Model under Company Fit-Gap → 05 - Sales & Distribution.

2. O2C Process Scope

Inquiry → Quotation → Sales Order → Credit Check → Delivery → Picking → Goods Issue → Billing → Collection

3. Generic O2C Stakeholder Operating Model

O2C Step	Typical Owner	Approval	Typical SLA	System Notification	Required Action	Escalation
Receive inquiry	Sales / Customer Service	No	Same day	Inquiry logged	Respond to customer, create quotation	Supervisor if no response same day
Create quotation	Sales	Internal review (varies)	Same day	Quotation draft saved	Complete pricing, validity, terms	Sales manager if not completed
Create sales order	Sales / Customer Service	Only after approved quotation	Same day	Quotation approved	Create sales order with reference	—
Credit check	Finance / Credit Controller	Yes if blocked	1 business day	Credit block notification	Release, reject, or request advance payment	Credit Manager if unresolved
Availability check (ATP)	Logistics / Planning	No	Automatic	Stock shortage alert	Adjust qty or confirm delayed date	Planning team if unresolved
Delivery creation	Customer Service / Logistics	No	By delivery date	Order ready for delivery	Create outbound delivery	Logistics manager if overdue
Picking / packing	Warehouse	No	Same day or agreed SLA	Delivery created	Pick and pack per delivery	Warehouse supervisor
Post goods issue	Warehouse / Logistics	No	Same day after picking	Picking completed	Post goods issue	Logistics manager
Create invoice	Finance / Billing	No (or billing block review)	Same day after PGI	Goods issue posted	Create and send invoice	Finance manager
Cash application	Finance / AR	No	Per payment terms	Payment received	Apply payment to open invoice	AR supervisor
Collection follow-up	Finance / AR	No	Per payment terms	Invoice due / overdue	Contact customer, escalate if unresponsive	Collections manager
Returns processing	Sales / Warehouse	Finance approval if required	1–3 business days	Return request created	Validate, approve, create return delivery	Returns team lead
Credit / debit memo	Sales / Finance	Billing block review	1–2 business days	Memo request pending	Review justification, release block, post	Finance manager

4. Approval Sequences

4.1 Quotation Approval (When Applicable)

Salesman creates quotation
  → Financial review (pricing, margin, credit terms)
  → Commercial / Sales Director approval
  → Quotation becomes approved
  → Salesman may create sales order with reference

Rejection at any step returns the quotation to the salesman for revision.

4.2 Credit Release

Sales order triggers credit check
  → If limit exceeded → Credit block applied
  → Credit Controller reviews → Release, reject, or request prepayment
  → If no action within SLA → Credit Manager notified

5. SLA Framework

Category	Typical SLA	Notes
Quotation creation	Same day or next business day	Depends on complexity
Credit check decision	1 business day	Measured from credit block notification
Delivery creation	By agreed delivery date	Tied to customer commitment
Picking & PGI	Same day as delivery creation	Depends on warehouse capacity
Invoice creation	Same day as PGI	Best practice: automated upon PGI
Payment terms	30 / 60 / 90 days net	Agreed in customer master
Collection follow-up	3–5 days after due date	Depends on dunning configuration

6. Notification Rules

Trigger Event	Who Is Notified	Notification Content	Expected Action
Sales order created	Credit Controller	Order, customer, credit exposure	Run credit check
Credit block applied	Credit Controller + Sales	Block reason, amount	Release or reject
Delivery date approaching	Customer Service + Warehouse	Delivery date, items, quantities	Create delivery
Delivery created	Warehouse	Delivery number, pick list	Pick and pack
Picking confirmed	Logistics	Delivery number	Post goods issue
PGI posted	Billing team	Delivery number, amount	Create invoice
Invoice overdue	AR / Collections	Invoice, amount, days overdue	Dunning / follow-up

7. Escalation Matrix

Step	SLA Breach	First Escalation	Second Escalation
Credit decision	> 1 business day	Credit Manager	CFO
Delivery creation	> Committed date	Logistics Manager	Customer Service Director
PGI	> Same day after picking	Warehouse Supervisor	Logistics Manager
Invoice creation	> Same day after PGI	Finance Manager	CFO
Payment collection	> 30 days overdue	Collections Manager	Legal