Dynamics 365 order-to-cash process flow (Finance & SCM)
Editable Dynamics 365 Finance and Supply Chain Management order-to-cash process flow: sales quotation, sales order, credit holds, warehouse waves, packing slip, sales invoice, collections and customer payment.
What the dynamics 365 order-to-cash process flow (finance & SCM) process is
Microsoft's business process catalog calls this end-to-end process order to cash, and splits it into process areas from sales quotation to collections. On a project, those areas are designed by different people: a sales consultant, a warehouse consultant and a finance consultant. The end-to-end flow is what keeps their designs joined up.
The handoffs to watch are the credit hold, the release to warehouse and the packing slip. Credit management can put an order on hold at several points, and a held order waits for a credit manager. Warehouse management turns the order into waves and work, and the invoice cannot be posted until the packing slip is. A map that shows those steps in the right lanes explains most order delays.
Use the template for D365 implementation workshops, an upgrade from AX 2012, or training. Rename lanes, add your order types, and delete the quotation stage if orders arrive directly.
What this flowchart covers
In this template
- Sales quotation, confirmation and conversion to a sales order
- Credit limit checks and credit management holds released by a credit manager
- Sales order confirmation, release to warehouse, waves, picking and the packing slip
- Sales invoice posting to accounts receivable
- Collections follow-up in the Collections workspace and posting the customer payment journal
When to use this template
- You are designing order-to-cash for a Dynamics 365 Finance and SCM implementation
- You are upgrading from Dynamics AX 2012 and want to confirm the to-be sales process
- Orders are delayed between confirmation and invoicing and you need to show why
- Sales, warehouse and AR teams need a shared view of the process for training
How it works
Rename the lanes
Map lanes to your sales team, credit management, warehouse and accounts receivable, per legal entity if the process differs.
Set the credit rules
Write your credit management rules on the decision, including at which stage the hold is checked.
Add warehouse detail
If you use advanced warehouse management, add the wave template and work steps your warehouse runs; otherwise simplify to pick and packing slip.
Add your order variants
Direct delivery, intercompany orders and returns follow different paths; add a branch for each one you use.
Approve the flow
Send it to the sales and finance process owners; their approval and later edits are kept in the version history.
Frequently asked questions
What are the steps of order-to-cash in Dynamics 365?
Create a sales quotation, confirm it and convert it to a sales order, pass the credit check, confirm the order and reserve inventory, release it to the warehouse, pick and pack, post the packing slip, post the sales invoice, follow up on overdue invoices in collections, and post and settle the customer payment.
How do credit holds work in Dynamics 365 Finance?
Credit management rules check the customer's credit limit, overdue balances and other criteria, and can place a sales order on hold at confirmation, picking, packing slip or invoice. A credit manager reviews held orders and releases or rejects them.
Is order-to-cash in D365 different from Dynamics AX 2012?
The core flow is the same. D365 adds the Collections workspace, newer credit management, and warehouse management features such as waves and mobile device work, and it runs in the cloud with continuous updates. Mapping the AX 2012 flow and the D365 flow side by side shows what changes for users.