Quote-To-Cash: An Introduction
Organizations know the importance of having a smooth-running ERP system as it determines the overall efficiency, profit, and quality of their business. Similarly, for the sales and accounts department, it is imperative to have a system that meets the end-to-end sales processes that will help drive the revenue of the organization.
Quote-To-Cash is an automated system that manages all the sales process starting from configuration of the quote, contract, billing, negotiation, renewal, and receiving payments. These aspects of business are essential to be supported with a modernized system for the effective running of the business cycle.
What are the steps involved in QTC?
The Quote-To-Cash integrates many sales account management, quote fulfillment, billing, and account receivables functions. The step-by-step procedure of the QTC system has the following processes.
This is the process that involves customers selecting product requirements and make known specifications for their quote.
In this step, the sales department calculates and decides the price that goes in for making the required product and also determines the profit the organization wants to receive on the sale. Then, they make a detailed quote for the order and present it to the client.
This is a formal step that involves the signing of the contract by the customer after deciding to accept the quote presented by the organization. Once they sign, the production department can start to work on the product.
Once the quote fulfilment, the accounting department staff will create an itemized bill and send it out to the customers and collect the owed money.
This is the step that allows the organization to improve the overall end-to-end process. The sales staff can analyze the orders placed and work on promoting their product sales for the future clients who may approach.
The customers can renew their orders if they want to in the future and the manufacturer can suggest the customers for renewal as well.
With SAP BRIM’s Quote-To-Cash management, these six steps are covered automatically and at a fast pace. So, that the manufacturers can completely rely on the system and eliminate the need to work on time-consuming, and error-prone processes.
There are three layers to the quote-to-cash flow:
1) Configure, Price, and Quote (CPQ)
This system allows the sales staff to create quotes for products that have complex configurations.
2) Contract Management
This system helps create customer contracts, signatures, carry-out negotiation, and renewal. This is a self-service system that allows the business to execute and manage the contracts on a unified workspace.
3) Revenue Management
The final layer of the quote-to-cash flow is the revenue management system that collects orders, sends bills, and settles accounts receivable and payable.
SAP BRIM streamlines Quote-to-Cash management and will help you create a positive impression on your organization and engage customers to purchase products. With an integrated CPQ and contract lifecycle, QTC will aid to enhance your revenue to a greater level.
With our deep industry experience, we leverage leading strategy to address your business needs. For more information on Quote-To-Cash, reach out to our experts at Mobolutions.