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What is the correct sequence of the order-to-cash process?

1) responding to customer inquiries; sales order processing; pick and pack; billing; shipping; payment
2) sales order processing; responding to customer inquiries; pick and pack; shipping; billing; payment
3) sales order processing; pick and pack; billing; shipping; payment; responding to customer inquiries
4) responding to customer inquiries; sales order processing; pick and pack; shipping; billing; payment

User Jootl
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1 Answer

1 vote

Final answer:

The proper sequence for the order-to-cash process is: responding to customer inquiries, sales order processing, pick and pack, shipping, billing, payment, which corresponds to option 4.

Step-by-step explanation:

The correct sequence of the order-to-cash process is: responding to customer inquiries, sales order processing, pick and pack, shipping, billing, payment. Therefore, the correct answer is option 4.

The order-to-cash process begins with responding to customer inquiries where a customer shows interest in purchasing products. Next is sales order processing, where the order details are recorded and confirmed. Following this, the goods are picked and packed according to the order. The next step is shipping, where the goods are sent out for delivery to the customer. After shipping, the billing process occurs where the customer is invoiced for the goods received. Finally, the payment is received, thus completing the order-to-cash cycle.

This process is crucial for effective and efficient revenue and receivable management within a business.

User Sdex
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