Quote-to-cash

Definition

Quote-to-cash is the full process from quote to payment: a customer requests a price, receives a quote, places an order, and the company invoices and collects payment. In B2B sales with lots of custom work and negotiated pricing, this process often runs through multiple systems that don't talk to each other.

From first request to paid invoice

A quote request starts the process. Price negotiation, approval, order processing, delivery and invoicing follow. Delays can creep in at every step when sales, ERP and accounting work separately.

Difference from order-to-cash

Order-to-cash only starts at the order itself. Quote-to-cash also covers the stage before that: the quote and the negotiation. For companies that sell a lot of custom work, using CPQ tools or customer-specific pricing, that earlier stage is often the biggest bottleneck.

Practical example

A wholesaler sends a quote for 500 units with a volume discount. Once the customer accepts, the system automatically turns the quote into an order, without anyone re-entering the details.

Related terms

CPQ · RFQ (Request for Quote) · Order-to-cash

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