In Oracle Fusion, O2C refers to the Order-to-Cash process, which is a set of business activities involved in receiving and processing customer orders, fulfilling those orders, and receiving payment for the products or services delivered. The O2C process typically involves several stages, and Oracle Fusion provides a comprehensive suite of applications to manage these activities efficiently. Here’s a general technical flow of the O2C process in Oracle Fusion:

1. Order Entry:

   • The O2C process begins with the creation of sales orders in the Oracle Fusion Order Management module.
   • Sales representatives or users enter customer orders into the system through the order entry interface.
   • The system validates the order for accuracy and completeness.

2. Order Processing:

   • Once the sales order is entered, the system checks inventory levels to determine product availability.
   • If the ordered items are available in stock, the system reserves the inventory to fulfill the order.
   • If the items are not available in stock, the system may create purchase requisitions or backorders to procure the items from suppliers.

3. Order Fulfillment:

   • The system generates picking lists or packing slips to prepare the items for shipment.
   • Warehouse personnel pick, pack, and ship the items to the customer’s designated address.
   • Oracle Fusion Shipping Execution is often used to manage the shipping process, including carrier selection and tracking.

4. Invoicing and Billing:

   • After the items are shipped, the system generates invoices based on the sales order details.
   • The invoicing process may involve various configurations, such as prepayments, credit memos, or installment payments.
   • Oracle Fusion Receivables manages the invoicing and billing aspects of the O2C process.

5. Revenue Recognition:

   • For complex transactions or specific industries, revenue recognition rules may apply.
   • Oracle Fusion Revenue Management helps automate revenue recognition based on accounting standards and contractual terms.

6. Accounts Receivable:

   • Oracle Fusion Accounts Receivable module tracks customer payments and outstanding balances.
   • Customers can make payments through various channels, such as online payment gateways, checks, or electronic fund transfers.
   • The system updates the customer account records and the general ledger based on received payments.

7. Collections Management:

   • For managing overdue payments, Oracle Fusion Collections Management provides tools to streamline the collections process.
   • It enables users to monitor and follow up on outstanding invoices to ensure timely payments.

8. Reporting and Analytics:

   • Oracle Fusion provides various reporting and analytics tools to analyze O2C performance and gain insights into sales, orders, inventory, and revenue metrics.