Order to Cash, Procure to Pay & Inventory process frameworks
Customer requests a quote. Sales team prepares and sends quotation with pricing, delivery timeline, and terms.
Customer confirms. Sales order is created in the system with agreed price, quantity, delivery date, and payment terms.
Warehouse receives pick list. Items picked, packed, quality checked, and handed to logistics for delivery.
Goods delivered to customer. Signed delivery note (POD) collected and filed. System updated with delivery confirmation.
Invoice raised based on the delivery. Invoice must match the sales order (price, quantity, customer details).
Customer pays. Payment allocated against the invoice. Overdue accounts escalated to collections team.
% of orders fulfilled on time and in full (OTIF). Target: >95%
Average days to collect payment. Target: within agreed payment terms
% of invoices raised without errors. Target: >98%
Time from order receipt to delivery. Measure and set target per product type
Department identifies a need and raises a Purchase Requisition. Must include item description, quantity, required date, and cost centre.
Procurement team selects approved vendors. For purchases above threshold, minimum 3 quotes required (Request for Quotation).
PO raised against preferred vendor with agreed price and delivery date. PO approved per authorization matrix before sending to vendor.
Goods received at warehouse. Quality check performed. Goods Receipt Note (GRN) raised in the system. Discrepancies reported immediately.
Vendor invoice received and matched against PO and GR (3-way match). Any discrepancy blocked for payment until resolved.
Approved invoice paid on due date per agreed payment terms. Payment run processed by Finance. Remittance sent to vendor.
% of purchases made with a PO raised first. Target: >98%
% of invoices that pass 3-way match without manual intervention. Target: >90%
% of invoices paid within agreed terms. Target: >95%
% of spend outside approved vendors/PO process. Target: <5%
All incoming stock recorded immediately on physical receipt. GRN raised, bin location assigned, stock labels applied.
Items stored in designated locations. Bin cards maintained. FIFO (First In, First Out) applied for perishables and dated goods.
Stock issued only against an approved document (Sales Order, Production Order, Internal Request). Transfer between locations recorded.
Regular counting of stock in rotation rather than shutting down for a full count. High-value items counted monthly; others quarterly.
Full physical count of all stock at least once per year. System vs physical reconciliation completed and signed off by finance.
Monthly review of stock not moved in 6+ months. Decisions made on write-off, return to supplier, or markdown and disposal.
% match between system stock and physical count. Target: >98%
How many times stock is used and replenished per year. Higher = more efficient
Slow-moving & obsolete stock as % of total inventory value. Target: <5%
% of times an item was out of stock when needed. Target: <2%
R = Responsible (does the work) A = Accountable (owns the outcome) C = Consulted (provides input) I = Informed (kept updated)
| Activity | Sales | Warehouse | Procurement | Finance | Management |
|---|---|---|---|---|---|
| Create Quotation | R/A | I | C | C | I |
| Create Sales Order | R/A | I | — | C | I |
| Pick & Pack Goods | I | R/A | — | — | I |
| Raise Customer Invoice | C | — | — | R/A | I |
| Collect Payment | C | — | — | R/A | I |
| Raise Purchase Requisition | C | R | A | C | — |
| Approve Purchase Order | — | — | R | C | A |
| Receive Goods (GRN) | — | R/A | I | I | — |
| 3-Way Match & Pay Invoice | — | — | C | R/A | I |
| Cycle Count | — | R/A | I | I | I |
| Annual Stock Take | — | R | C | A | I |
| SLOB Review & Write-Off | C | R | C | A | A |