Prepared by:Devdut Saha

Roll: 09BM8083VGSoM, IIT kharagpur

Abstract:

This document attempts to put together the processes that are followed in a simple Order to Cash cycle scenario of any company. The application supporting the use case is developed as an end-term evaluation for the Management Information Systems course taught in Vinod Gupta School of Management, IIT kharagpur.The processes described in the document are at a basic level and does not take care of implications due to taxes and government policies. However the processes can be made better and customized to support any small or medium scale businesses.

Status of this document:

The document is accompanying an application built with the use of Zoho. The document describes the processes that can be performed with the help of the application.Any queries regarding the document can be mailed to: devdut.saha@gmail.com

Table of contents

1. Description.......................................................................................................................32. Scope................................................................................................................................53. Stakeholders/Interests......................................................................................................54. Actors & Goals................................................................................................................55. Usage scenarios...............................................................................................................5

5.1 Salesman captures the lead........................................................................................55.2 Corporate office does the customer credit evaluation...............................................65.3 Corporate office creates sales order...........................................................................65.4 Warehouse manager dispatches the goods................................................................65.5 The accounts department raises customer invoice.....................................................75.6 The account department receives payment from customer.......................................7

6. Use case diagram.............................................................................................................7

1. DescriptionA company has some fixed number of products which it sells to the customers. The salespersons of the company captures lead from customer and pass it on to the corporate office. The corporate office does the credit evaluation of the customer and if found suitable then approves it for the sales order. The lead is converted to sales order with the product and the customer details. At this point of time the inventory against the particular product is checked .If the inventory falls below the reorder level, mail is sent to the purchasing department. If the inventory is not sufficient for the order then mail is sent to purchasing department and the lead is put on hold. Otherwise the lead is converted into sales order. The goods are dispatched to the customer with delivery challan. The customer invoices are created against the sales orders for which goods have been dispatched. The payments are received against the invoices created against the sales order.At any point of time as owner-manager one can check the inventory position, the accounts receivables, payments and goods delivery status.

The process flow is diagrammatically represented as follows-

2. ScopeThe use case scenarios are limited to the basic processes and it does not take into account the implications due to taxes and accounting. However some of the process scope is limited because of the actions and operations that are not available in Zoho applications.

3. Stakeholders/Interests1. Customer: Purchase products from the company by booking orders and making payments against them.2. Company: Books orders of the customer, dispatch the goods, raises invoice and receive payments against it. The company basically performs through salesman, corporate office, accounts department and warehouse manager

4. Actors & Goals1. Customer: Books order for a product, receives the goods and the bill and makes the payment.2. Salesman: Captures the lead against a customer and passes it to the corporate office.3. Corporate office: Creates the master data, receives leads from salesman, create sales orders and intimates the warehouse manager for delivery of the product, intimates the purchasing department when product quantity is in shortage.4. Accounts: Raises invoice against sales orders, Receives payments against the invoices.5. Warehouse manager: Dispatches the products upon intimation from corporate office.

5. Usage scenarios

5.1 Salesman captures the leadGoal /contextThe salesperson finds a customer who has requirement for a product of the company. The salesman creates a lead and passes it on to the corporate office.

Scenario/Steps1. The salesman introduces the products of the company to the customer.2. The customer places requirement of certain product.3. The salesman creates a lead and passes it on to the corporate office for further

actions. If the customer is a new one the salesman sends the details of the customer along with the lead to the corporate office.

5.2 Corporate office does the customer credit evaluationGoal/Context

The corporate office evaluates the customer with the records available in their database about the products purchased and the payments made.

Scenario/Steps1. The corporate office receives the lead from the salesman.2. If the customer is an existing one, it verifies the previous records of the customer

from the company database like whether the payments has been received on time or customer has the ability to pay for such products.

3. If the customer is a new one, the corporate office investigates and checks the details of the customer and makes entry in the company’s database.

4. If the rating of the customer is satisfactory the lead is approved for creating sales order otherwise the lead is not processed.

5.3 Corporate office creates sales orderGoal/ContextThe corporate office converts the lead into sales order against which the products will be delivered to the client.

Scenario/Steps1. The corporate office checks the inventory for the particular product.2. If the inventory is insufficient the corporate office puts the lead on hold and sends

a mail to the purchasing department.3. If the inventory is sufficient then it creates the sales order and reduces the

inventory available. If the inventory falls below the reorder level the corporate office sends mail to the purchasing department to order for the product.

4. The corporate office intimates the warehouse manager to deliver the product to the customer.

5.4 Warehouse manager dispatches the goodsGoal/ContextThe warehouse manager dispatches the goods to the customer against the sales order raised by the corporate office with the necessary details.

Scenario/Steps1. The warehouse manager receives the sales order from the corporate office.2. The warehouse manager creates a delivery challan against the sales order with the

details of the transporter, address of the customer and details of the product.3. The goods are delivered to the customer.4. The warehouse manager intimates the corporate office and the accounts

department regarding the delivery of the goods.

5.5 The accounts department raises customer invoiceGoal/Context

The accounts department of the company raise invoice against the sales orders for which goods are delivered.

Scenario/Steps1. The accounts department receives intimation from the warehouse manager

regarding the delivery of goods to the customer.2. The account department creates customer invoice against the sales order.3. The invoice is sent to the customer.

5.6 The account department receives payment from customerGoal/contextThe customer makes payment against the invoice and the accounts department receives the payment and makes the entry.

Scenario/Steps1. The customer makes a payment either through cash/cheque/DD.2. The account department receives the same and makes the payment details entries

in the system and indicates that the payment is received against the sales order.

6. Use case diagram