Quote-to-cash Process 101: Steps, Examples And Driving Success

HubSpot is a powerful and easy-to-use sales CRM that includes sales engagement tools, configure-price-quote (CPQ) functionality, and robust sales analytics for growing teams. Sales Hub is built on the HubSpot CRM platform where customer data, tools, and teams come together to create a single source-of-truth for unprecedented sales rep efficiency. Any information that a customer has requested concerning the products or services is contained in this internal document. The order shall then be forwarded to the relevant departments, for example, production, distribution, or service delivery, and will begin a fulfillment process. Revenue can only be recognized once it is deemed ‘earned’ through the delivery of products and services. The journey begins with creating a deal or opportunity within the automated billing system.

The Quote-to-Cash Process: Your Comprehensive Guide

Pricing is critical to the customer relationship, and hence your sales team needs to be accurate and timely. Sometimes, pricing can involve multiple layers, such as promotions, discounts, and add-ons. But, regardless, your team needs to be very fast as research shows the sale goes to whoever responds the fastest. The procurement team shall create a purchase order to formalize quote-to-cash process the contract and specify its agreed terms after it is finalized. Information such as product description, quantity, price, delivery date, and terms of payment shall be included in the PO.

Deal/Opportunity

At Chargebee, we have created a framework for a winning quote-to-cash workflow harnessing our integration with Salesforce. QTC is a complex process that encompasses many disparate organizational functions. Furthermore, multiple departments and employees have to find ways to manage the process cohesively in order for you to get the most value out of it.

What is behind “Quote-to-Cash process”?

The risk of errors in billing and invoicing will be reduced by using automation during the quote-to-cash process so that customers are properly invoiced on time. The objective is to achieve efficient management of the sale process and maximize revenue generation by means of different steps and activities. Additionally, to reduce the sales cycle time, improve customer satisfaction, and increase revenue collection efficiency, it is vital for companies to manage their Quote to Cash process in an efficient manner. Customer-centric tasks like the quote-to-cash process are interdependent and must be integrated into a single business process with the right software. The right software helps create a single platform from which customer data can be collected, processed, and updated in real-time to empower sales reps to engage clients more effectively.

A Comprehensive Guide to Completing the Quote to Cash Process the Right Way

• The more accessible and logical your process is, the better your customer experience (CX) will be because consumers want a fast and easy buying process.
• The processing of payment in respect of authorized invoices shall be carried out by the Finance Department.
• Quote-to-cash automation is one of the most effective ways of streamlining the quote-to-cash business process.
• Empower your sales team with battlecards, pricing matrices, call coaching, and just in time content to help them address customer needs while configuring a price.
• Modern pricing strategies encompass a variety of offerings, from subscriptions to usage-based models, hardware products, professional services, and bundled packages, which adds complexity.

They should also operate on a unified data model to eliminate siloes, improve visibility, and provide a single source of truth across the sales cycle. By employing a QTC solution, you can easily and seamlessly manage the independent actions that make up the QTC cycle. This enables your salespeople to deliver accurate information to customers, minimize order and invoicing errors, and improve your data analysis and forecasting efforts. In the billing phase of the QTC process, charges are calculated and invoices are sent to the customer to ensure on-time payment.

• Handling all the revenue recognition exercises manually can be a tedious process that is riddled with errors.
• Users of the order-to-cash or quote-to-cash process in Oracle apps frequently ask other users or customer support what the difference is and if the distinction matters.
• A QTC process can help reps get some of that time back.By automating key tasks, digital QTC processes cut down on the manual effort required to create, send, and revise a proposal or invoice.
• With respect to credits or refunds, they constitute one of the most labor-intensive activities of the billing cycle and need to be handled quickly and efficiently.
• In the billing phase of the QTC process, charges are calculated and invoices are sent to the customer to ensure on-time payment.
• At Procurement Tactics, we educate Procurement Professionals to close better deals, secure supply and advance their career.

CPQ Software

The quote-to-cash process, often referred to as Q2C, is assets = liabilities + equity your business’s roadmap from the time a potential customer expresses interest until the concluding transaction. It spans a wide array of activities, from offering configuration and pricing to generating quotes and contract management. This journey also includes tasks like fulfilling orders, invoicing clients, recognizing revenue, and spotting renewal opportunities. Cumbersome or poorly defined approval processes for quotes, discounts, or contracts can significantly slow down the sales cycle. Excessive bureaucracy and delays can frustrate both customers and sales teams, potentially leading to lost deals and a negative perception of your business. Q2C solutions support the initial stages of the sales process by providing tools for setting list prices, regional prices, and offering pricing guidance.

Develop offer price and quote

The process is now in the hands of your accounts receivables team who calculate final charges and produce an invoice. It’s also important that the invoice is error free and sent to the customer as quickly as possible. Once the contract is signed and the order is placed, various departments are notified, kicking off the fulfillment process. This step consists of processes that range from order approval to disseminating the order for processing, fulfillment, and notifying the shipping department.

• Whatever the case, your team will have to be very quick since research shows that sales are going to whoever comes up with the fastest response.
• The revenue recognition stage marks the receipt of payment from the company, officially recording the revenue to maintain an accurate view of profit and loss.
• The quote-to-cash (QTC) process encompasses many sales, account management, order fulfillment, billing, and accounts receivables functions.
• Complicated pricing structures, however, can cause salespeople to deliver error-laden quotes.

The quicker the offer configuration process, the better the chances of capturing the prospect. It is important to distinguish the end point from the moment people assume the sales process is over. The sales process is complete only when the law firm chart of accounts cash has been applied and the entire cycle is reported and analyzed. This blog throws light on the quote-to-cash business process, and quote-to-cash process steps, and evaluates the effectiveness of quote-to-cash automation.