Order to cash protocol

Order-to-Cash Protocol

Purpose

This skill coordinates the order-to-cash (O2C) end-to-end process in Microsoft Dynamics 365 environments. Starting from a confirmed sales order, it orchestrates order management, inventory fulfillment, shipment, invoicing, accounts receivable, and cash collection. The protocol aligns d365-supply-chain-plan-to-produce-agent (fulfillment), d365-finance-close-to-report-agent (invoicing and AR), and d365-sales-revenue-operations-agent (sales performance and customer communication). It does not give business or financial advice; all recommendations are subject to human owner confirmation.

When to use

• A confirmed sales order must progress through fulfillment, invoicing, and payment collection.
• Multiple Dynamics 365 modules are involved and cross-agent coordination is required.
• An accounts receivable aging item needs coordinated follow-up between Sales and Finance.
• A return, credit memo, or dispute requires orchestrated handling across Supply Chain and Finance.
• A post-order cash flow analysis or DSO escalation requires cross-domain visibility.

When NOT to use

• The opportunity has not yet been converted to a confirmed order — use the lead-to-cash-protocol or prospect-to-quote process instead.
• The matter is confined entirely to accounts payable or procurement — use procure-to-pay-protocol.
• Direct live-order configuration or system transaction execution is required — escalate to the relevant specialist.
• The matter involves revenue recognition complexity at contract inception — use lead-to-cash-protocol first.

Participating agents

• d365-supply-chain-plan-to-produce-agent — owns order fulfillment, picking, packing, and shipment
• d365-finance-close-to-report-agent — owns invoicing, accounts receivable, collections, and cash application
• d365-sales-revenue-operations-agent — owns sales order policies, customer communication, and sales performance analysis

Inputs required

• Confirmed sales order number and legal entity
• Customer account and credit status
• Requested and promised delivery date
• Pricing and discount terms from the sales order
• Accounts receivable payment terms for the customer

Evidence required

• Sales order confirmation record from Dynamics 365 Supply Chain Management
• Available-to-promise (ATP) or inventory reservation confirmation
• Packing slip or delivery note reference
• Invoice draft for accuracy review before posting
• Payment receipt or remittance advice for cash application

Workflow

1. Receive confirmed sales order from d365-sales-revenue-operations-agent or directly from the order management system.
2. Verify order accuracy: line items, pricing, quantities, and delivery terms match the original customer agreement.
3. Check customer credit status; if credit is on hold, escalate to d365-finance-close-to-report-agent and finance owner.
4. Trigger inventory reservation and ATP confirmation via d365-supply-chain-plan-to-produce-agent.
5. Monitor warehouse picking, packing, and shipment workflows; flag delays against committed delivery dates.
6. Generate packing slip upon confirmed shipment; hand off to d365-finance-close-to-report-agent.
7. Create and validate sales invoice against packing slip and sales order; surface discrepancies for human resolution.
8. Post invoice and open accounts receivable entry in Dynamics 365 Finance.
9. Monitor payment due dates; trigger collection activities per the customer's payment terms.
10. Apply received cash to open invoices and close accounts receivable entries; update sales performance reporting.

Decision gates

Gate	Condition	Action if not met
Credit status	Customer account not on credit hold	Escalate to d365-finance-close-to-report-agent and finance credit manager
Order accuracy	Lines, prices, and terms match customer agreement	Return to d365-sales-revenue-operations-agent for correction
ATP confirmation	Stock reserved or ATP date within delivery window	Notify supply chain agent; surface gap to human owner
Invoice accuracy	Invoice matches packing slip and sales order	Hold posting; flag for human review
Collections escalation	Payment overdue beyond configurable threshold	Escalate to finance collections owner

Refusal triggers

• Live transaction execution is requested without human confirmation — refuse and escalate.
• Credit hold override is requested without documented approval — refuse.
• Customer PII, payment details, or bank account data are present in any input — stop; redact and escalate.
• An invoice is requested to be posted with unresolved line discrepancies — refuse.
• A write-off or bad-debt decision is requested — escalate to finance owner; do not decide unilaterally.

Handoff rules

• Each handoff carries a structured capsule: matter_id, sales_order_id, current_stage, gate_outcomes, open_questions, do_not_do_list.
• One primary agent per stage: Supply Chain owns fulfillment; Finance owns invoicing and collections; Sales owns customer communication.
• No agent posts or reverses a financial transaction — all postings require human confirmation above materiality threshold.
• Escalations are logged with trigger, timestamp, and receiving owner.

KPIs

• Order fulfillment cycle time (order confirmation to shipment)
• Invoice accuracy rate (first-pass match to packing slip)
• Days sales outstanding (DSO)
• Cash application rate (% of invoices settled within payment terms)
• Collection effectiveness index (CEI)

References

• Order to cash end-to-end overview — Dynamics 365
• Order to cash business process areas overview
• Manage accounts receivable — Dynamics 365 Finance
• Work with order to cash in Dynamics 365 Supply Chain Management (training)