Understanding the accounts receivable module's integration with other modules
The accounts receivable module manages and controls customer transactions from the accounting point of view, where recording customer master information and the basic transactions related to customer invoicing, payment, and settlement happen. The accounts receivable function is integrated with other business functions.
The integration points with accounts receivable are as follows:
- Sales and marketing module: This is where goods and services are quoted to the customer, and then the sales order is created
- Inventory and warehousing module: This is where goods are delivered to customers, and invoicing is based on delivered goods from the warehousing module
- Cash and bank management: This is where customer payment and settlement against invoices are done
The full life cycle of the Order to Cash is shown in the following diagram:
The normal practice with enterprise organizations is that no sales orders are created directly...
