Quote-to-cash process

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The quote-to-cash process is a process where a company sells goods to customers. The process steps can vary depending on the company business needs. In general, the process starts with a quote and ends with collection of payment for the shipped goods.

1C:Drive supports the following quote-to-cash steps:

• Set up quote-to-cash process.
• Issue quotations.
• Place sales orders.
• Monitor sales order status.
• Ship goods and process sales invoices.
• Register tax invoices.
• Register goods return.
• Receive payment for the shipped goods.

Setting up quote-to-cash process

When you want to make a sale, you offer goods for certain customers. So, before you start your quote-to-cash process, do the following:

• If you want to sell new products, register the products in the Products catalog.

  You also have the following options:

  • If you want to differentiate products by characteristics such as color or size, set product variants.
  • If you want to track product batches, set batches.
  • If you are planning to apply differentiated prices (such as wholesale and retail prices), set various sale prices.
• If you are planning to s./ell to new customers, register the customers in the Counterparties catalog. As you register a customer, you can specify the following:
  • Payment terms
  • VAT rate
  • Discount
• If you are planning to apply a new discount plan, set the discounts.

Issuing quotations

When you receive a request for quotation from a potential customer, register a quotation and send it to the customer.

Placing sales orders

When a customer accepts your quotation and makes a purchase order, create a sales order based on the accepted quotation.

Monitoring sales order status

To ensure that you ship ordered goods in time, do any of the following:

• Monitor sales order statuses in the Sales orders list.
• View the Sales orders statement report.

Shipping goods and processing sales invoices

1C:Drive supports the following scenarios:

• Goods shipment before a sales invoice.
• Goods shipment together with a sales invoice.
• Goods shipment after a sales invoice.

If you ship the goods before a sales invoice, do the following:

1. Register a goods issue.
   Note. You can quickly generate a goods issue based on a sales order.
2. Monitor goods shipped but not invoiced.
3. Register a sales invoice.
   Note. You can quickly generate a sales invoice based on a goods issue.

If you ship goods together with a sales invoice, register the sales invoice. As you do so, the stock level is decreased. No need to register a goods issue to confirm shipment.

If you ship goods after a sales invoice, do the following:

1. Register a sales invoice.
   When you do so, set Invoice type to Advance invoice.
2. Monitor goods invoiced but not shipped.
3. As you ship goods, register a goods issue.
   Note. You can quickly generate a goods issue based on a sales invoice.

In any of the scenarios, you can match a sales invoice to the related sales order. This helps you track sales order fulfillment.

To match a sales invoice to a sales order, do one of the following:

• Generate a sales invoice based on a sales order.
• When you register a sales invoice, specify the source sales order.

When you post a sales invoice, the following accounting entries are registered on the GL accounts:

• Liability of the customer
• Recognized/accrued/deferred revenue
• Sold assets

Registering tax invoices

If your business process requires, register a tax invoice. To learn more, see Tax invoice issued.

Registering goods return

If the customer decides to return the shipped goods for good reason, register purchase return.

Receiving payment for the shipped goods

Track expected payments using the Account receivable and Accounts receivable aging reports.

As you receive a customer payment on the company bank account, register the bank receipt.

Note. You can quickly generate a bank receipt based on a sales invoice.

When you post a bank receipt, the following accounting entries are registered on the GL accounts:

• The customer’s liability is settled.
• Cash balance is updated.

Quote-to-cash diagram

The diagram below illustrates common steps of the quote-to-cash process.

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