Order to Cash and Procure to Pay are two of the most commonly used business terms in the corporate world today. Order to Cash (OTC) refers to the process of receiving and fulfilling customer orders, while Procure to Pay (P2P) covers the process of acquiring goods and services from suppliers. Together they form the basis of the business cycle, ensuring efficient, cost-effective and timely delivery of goods and services.
Order to Cash covers the entire order process, from customer order through to payment. This includes taking the customer’s order, processing it, shipping it to the customer, billing them, and finally receiving payment. The cycle is kept efficient by maintaining accurate data on customers, orders, inventory, pricing and delivery schedules.
Procure to Pay is the process of obtaining goods or services from suppliers. This involves researching and selecting suppliers, initiating