Order to Cash - Project Based Services

Best Practice Scenario: Order-to-Cash Project-Based Services

The Order-to-Cash Project-Based Services business scenario is used to manage the complete end-to-end process of selling project-based services to customers. This scenario integrates sales quotes and sales orders with project management allowing you to create customer invoices for time and expenses recorded against a customer project. Invoices can be created on a time and materials basis, a fixed-price basis, or a combination of both. After the customer invoice has been issued, customer payments can be monitored. This scenario also supports the analysis of project profitability based on project costs and revenues.

Process Flow details Order-to-Cash Project-Based Services

Roles involved to Order-to-Cash Project-Based Services

• Project Manager
• Billing Clerk
• Sales Representative
• Accounts Receivable Accountant

Business Value of Order-to-Cash Project-Based Services

The scenario of Order-to-Cash Project-Based Services integrates customer relationship management, project management, and service delivery with financial and management accounting to enable midsize companies to sell professional services. It also provides project life-cycle capabilities to help manage and deliver services.You can boost speed to revenue, decrease the cost of selling and delivering services, and improve customer satisfaction by delivering on time.

SAP Business ByDesign supports the entire order-to-cash scenario – from order management, project management, and time and expense recordings through to the settlement of invoices.

 

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Key Benefits of Order-to-Cash Project-Based Services

• Provides integrated business scenarios for customers focusing on professional services from order capturing, engagement execution to financial and project accounting;
• Project life-cycle provides a holistic view on projects, from project planning and execution to project billing, project controlling, including powerful analytics;
• Integrated resources for estimating job time requirements and labor cost as well as planning optimal service routes. Expense items can be tracked and invoiced within quotes and sales orders;
• Boost sales through sales of third-party services including procurement and financial integration of third-party costs;
• Supports project billing and revenue management, either T&E or fixed-price billing;
• Gives accurate information on already billed and unbilled time and expenses;
• Scalable process for revenue recognition supporting different accounting principles;
• Built-in analytics and reporting provides an accurate view of point-in-time project cost and revenues, which leads to more profitable business.

Application

• SAP Business ByDesign

Continue to review the other Business Processes SAP Business ByDesign

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