Order-to-Cash Process Quiz

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Questions and Answers

True or false: The order-to-cash process is triggered by the receipt of a purchase order from a customer.

True (A)

True or false: Depending on stock availability, the purchase order may be confirmed or rejected.

True (A)

True or false: If the purchase order is confirmed, an invoice is emitted and the goods requested are shipped.

True (A)

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Study Notes

Order-to-Cash Process

  • The order-to-cash process is triggered by the receipt of a purchase order from a customer.
  • The purchase order is reviewed to determine stock availability.
  • Depending on stock availability, the purchase order may be confirmed or rejected.
  • If the purchase order is confirmed, it triggers the next steps in the process.
  • An invoice is emitted as part of the order-to-cash process.
  • Goods requested by the customer are shipped as part of the order-to-cash process.

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