Using a QTC solution, you can easily manage all the independent actions that make up the “Money Offer” cycle. This way, your sales reps can quickly provide accurate information to your customers, minimize order and billing errors, and improve your data analytics and forecasting efforts. The QTC process then extends all the way until the money for the sale in question is collected and allocated, and the data for all points in the process has been analyzed and used to improve performance. It is important to distinguish this point of arrival from the moment when many people think that the sales process is over: at the moment when the customer agrees to order. Although this promotion means that a sale has been closed and the turnover can be accounted for, the sales process itself is only completed when the cash has been applied and the full cycle can be reported and analyzed. The cash quota process is the process that begins the moment a buyer expresses his intention to buy your product, and ends with what is the raison d`être of each company – depending on the turnover. Quote-to-cash or QTC is an end-to-end business process that covers all distribution processes, contract duration, order management, billing, recovery and covers the entire customer lifecycle. It is larger than the order-to-cash or over-the-counter process, which focuses on the execution of the contract. To learn more about the differences between QTC and OTC, go here. The pay-to-cash process covers end-to-end sales functions for your organization. As a general rule, the configuration of offers for an interested party is considered the first real step in the QTC process.
Although there are often some distribution activities that, with marketing functions, occur even earlier in the purchase funnel – cold calling, prospecting, in-depth sales activities, etc. – the ability to provide an offer is generally considered the first measurable and concrete QTC functionality. Order cash hones in on executing the order and how to efficiently deliver on customer orders, but this is just a piece of cake. Quote-to-cash is a much larger process that includes the order-to-cash process, as well as the configuration of price bid and contract management. I don`t want to be a wet blanket, but it`s a long way between reaching a deal and the latest awareness of sweet and sweet money in their books. So what is at stake in the “cash quota” process? Let`s dig a little deeper. Contracts are the backbone of your business, and while the O2C process uses data from customer contracts, contracting and negotiating is done in advance outside of the typical order-to-cash cycle. On the other hand, cash quotas cover all contract management processes, including setting up, negotiating, executing and even managing and recognizing turnover. Effective contract management in the QTC process can result in reduced contract cycles, higher acceptance rates, greater compliance and reduced administrative costs.
Order to Cash (OTC or O2C) usually refers to one of the high-level (contextual) business processes for receiving and processing customer orders.