Taking Control of the Order to Cash Cycle
A recent survey by the Association of Certified Fraud Examiners (ACFE)1 estimates that the average organization loses 5% of its revenues to fraud each year. However, the costs to an organization due to fraud and error are not just financial; there are intangible costs with potentially far greater consequences.
One of the business processes where there is considerable potential for fraud and error is in the order to cash cycle. Order to cash (OTC) is a set of business processes that involve receiving and fulfilling customer sales for goods or services. An OTC cycle consists of multiple sub-processes including:
- Customer order is documented
- Order is fulfilled or service is scheduled
- Order is shipped to customer or service is performed
- Invoice is created and sent to customer
- Customer sends payment/collection
- Payment is recorded in general ledger
A challenging economy, growth in the volume of transactions and increases in cross border trading are all driving potential fraud and error in this cycle. To help mitigate the risk and have an effective control environment, it is important to take advantage of Enterprise Resource Program (ERP) controls where appropriate.
Download this informative point of view co-sponsored by Deloitte2 and Oracle for details on what contributes to potential fraud, and options for helping to reduce the potential impact to your organization.
1 The Association of Certified Fraud Examiners’ 2010 Report to the Nations on Occupational Fraud and Abuse
2 As used in this document, "Deloitte" means Deloitte & Touche LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.