Discuss in detail the source documents used in the Order to cash cycle.

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The Order to Cash (O2C) cycle encompasses the entire process from receiving customer orders to collecting payment for goods or services rendered. Throughout this cycle, various source documents are used to record and track the different stages of the process. These source documents provide evidence of the transactions and form the basis for further processing and documentation. Here are some key source documents used in the O2C cycle:

 

1. Purchase Order (PO): A purchase order is a document generated by the customer to request the purchase of goods or services from a supplier. It includes details such as the quantity, description, price, and terms of the requested products or services. The PO serves as the initial source document that triggers the O2C cycle.

2. Sales Order (SO): A sales order is a document created by the seller as a response to the customer's purchase order. It confirms the acceptance of the customer's request and specifies the details of the sale, including the agreed-upon quantity, price, delivery date, and terms of the transaction. The sales order serves as an internal document used to initiate order fulfillment.

3. Delivery Note (DN) or Packing Slip: A delivery note or packing slip is a document prepared by the seller to accompany the shipment of goods. It includes details such as the items being shipped, quantities, packaging information, and any special instructions. The delivery note serves as proof of delivery and helps in reconciling the shipment with the sales order.

4. Sales Invoice: The sales invoice is a document issued by the seller to the customer to request payment for the goods or services provided. It includes details such as the description of the products or services, quantity, unit price, total amount due, and any applicable taxes or discounts. The __________ _____________ ______ ________ __________ ___ ______ __________ _____ __________ ______ ________ __ ____________ ________.
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Degree : DIPLOMA PROGRAMMES
Course Name : Diploma in Business Process Outsourcing — Finance and Accounting
Course Code : DBPOFA
Subject Name : Order to Cash (O2C, Accounts Receivable)
Subject Code : BPOI 104
Year : 2023