Order-to-Cash is an integration point between Finance (FI) and Sales (SD). It is also known as OTC or O2C in short form. It is a business process that involves sales order from customers to delivery and invoice. It comprises SO, Delivery, Post Goods Issue (PGI) and billing to customers. OTC process is a very important process in Enterprise Resource Planning software(ERP Software). Both major ERP software SAP and Oracle include this process. Newcastle Business School has a global reputation for delivering some of the best business management education in the UK. We are part of an elite group of less than 1% of business schools worldwide with double accreditation from the Association to Advance Collegiate Schools of Business (AACSB) in business and accounting.
I enjoyed your introduction to agency theory. While performance-based compensation is deployed to align agents ‘ interests with those of their shareholders, it is important to note that this form of compensation is not a panacea in rectifying agency problems. Often times, because compensation is based on performance, managers are likely to take on projects that are riskier in order to meet personal performance metrics. Consequently, firms could suffer financially if said projects do not meet financial expectations.