Oracle NetSuite Sales-to-Cash Functionality (Part 1)

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This is the first of a short 2-part mini-series taking a comparative look at how Oracle NetSuite handles Sales-to-Cash transactions in contrast with smaller accounting systems that typically require a lot of manual 'whatsit' to get the job done. Part 2 should be published within a week to 10-days.

When it comes to the mid-market certainly a lot of businesses need to consider how things are going to flow when it comes time to take customer orders and then fulfill those orders, invoice for them, collect, and post the customer’s remittance to the bank account. In short, those businesses want to know how simple the sales-to-cash cycle and related processes are for a sophisticated mid-market system.  The more streamline the sales-to-cash cycle the better the cash-flow will generally be. And while there can be unique circumstances like seasonal demands, supplier interruptions, labor irregularities or even pandemics that can throw a monkey-wrench into the typical cycle, it’s the normal methodology that most businesses will look at when they go to acquire a new system or enhance the one, they already have. 

For those businesses that have used small accounting systems, they may have relied on only the internal features those systems offered. In so doing they had a very limited number of steps that usually involved (1) client’s order (2) order becomes invoice upon fulfillment (3) process client payment for invoice, (4) deposit payment into bank. In a few cases they may have relied on 3rd-party software that provided some extra capabilities but for the most part the steps within the accounting system remain the same, with management of the ‘inventory’ taking place as a function of the order processing in terms of the quantities and value impacting the general ledger postings. Unfortunately, a lot of important steps like ‘fulfillment tracking’ (with partial order tracking, pick and pack, etc.) and ‘shipping’ from prime facility management are either all manual considerations, or simply a haphazard function of day-to-day operations.

But when it comes to Oracle NetSuite, managing the sales-to-cash cycle is easily accomplished automation of the integrated order and billing management capabilities built into the sales, finance and fulfillment features of this business management solution.  So, let’s take a look at just how ‘sweet’ the sales-to-cash cycle can be with Oracle NetSuite.

Order Entry

You might be in the Product business or Service business but either way you still make sales. Your sales may be made in-person, over-the-phone, via an email, via the internet, by means of a website, or any number of other ‘points of sale’. Everything that happens as part of the sales process can significantly impact the sale, the sales process, and the sales-to-cash cycle.

If your salespeople are using one CRM system to manage customers and track ‘their sales’, orders can get lost before they reach either the warehouse for fulfillment or the manufacturing floor for production.  If an entirely different system is being used to track inventory, then your salespeople could be promising merchandise that isn’t even available for sale, or fulfillment within a reasonable time frame.

All of these internal disconnects can disrupt the process, extending the time between orders, getting orders out the door, getting orders invoiced, and getting invoices paid by your customers.

The one system approach of Oracle NetSuite means that sales personnel, inventory, warehouse, manufacturing, and everyone else all share the same system with the same data. Customer data is visible where it needs to be across your entire team to those team members who need to see it, but not to those who don’t.

Sales representatives know exactly, in real time, what inventory is available from what warehouses in what geographic locations for immediate delivery, when the next shipments are expected, or the next production orders should be ready.  

The combination of shared data and automated workflows eliminates the lag time between sales taking orders and passing them on for fulfillment. The information and process flows smoothly from one department to the next, or even one location to another, depending on your circumstance.

Order Fulfillment

In small accounting systems without integrated order fulfillment, orders printed out and delivered to the warehouse downstairs, or emailed to a warehouse across the country, can sit in an inbox waiting to be filled. If those orders must be entered into another system to get them ‘picked’ and ‘packed’ for shipment, then things many times pile up and cause further delays.  Even when the picking and packing get processed, orders can still sit in the ready area awaiting someone to process the necessary shipping documents to get them out the door for delivery via whatever method is most advantageous.  Of course, all of this is compounded when insufficient inventory exists, and back-orders are called into question without a system to reroute orders to other fulfillment locations.

But once again, Oracle NetSuite’s one system approach eliminates order fulfillment bottlenecks via integrated warehouse management that is built-in with the ability to seamlessly interact with every other NetSuite functionality. Orders flow seamlessly from sales to warehouse for fulfillment based upon the most expeditious source for fulfillment even if that means delivery from multiple locations.

NetSuite’s integrated warehouse management puts tasks like product put-away, inventory picking, kitting and cycle counting as simply part of a tool-set available on your dashboard. Of course, those things go right along with expiration and shelf-life tracking, serial and lot tracking, barcode labeling, and mobile order fulfillment for receiving, picking and inventory-control.

And NetSuite provides out of the box integration with the world’s leading carriers including UPS, FedEx, USPS and many more. You won’t be re-keying data into yet another software package just to schedule deliveries and print-out shipping documents.

Well, this is where we are going to take a break for today. In part two of this mini-series, we will look at the rest of the steps in the Sales-to-Cash cycle and contrast how they typically get accomplished in those smaller accounting systems with a lot of manual tasks required, as opposed to the automated and integrated approach of Oracle NetSuite.

Disclosures:

Some content adapted from resource material provided during the NetSuite Now On Air event(s), October, 2020, used with permission. Illustrations provided by Oracle NetSuite source content, used with permission.

This article is an editorial feature, it is NOT sponsored content. Even thought it may contain references or 'inserts' that refer to sponsored webinars or other sponsored content, the actual feature is intended as an informational resource for our readers.