Within an order-to-cash cycle, how should “sales invoicing” be classified relative to the timing of the sale and delivery?

Introduction / Context:
The order-to-cash (O2C) process includes quotation, order entry, fulfillment, delivery, invoicing, and collections. Knowing where invoicing fits helps define responsibilities, controls, and systems integration between sales, logistics, and finance. Misclassifying invoicing can undermine revenue recognition and customer satisfaction.

Given Data / Assumptions:

• An invoice documents the amount due for goods or services provided.
• Invoicing generally follows shipment or confirmed delivery (for goods) or service completion (for services).
• Finance and accounting often execute invoicing, but its classification relates to timing, not department ownership.

Concept / Approach:
“Pre-sales” includes lead generation, qualification, demos, and quoting—activities before a sale is committed. “Post-sales” covers actions after the sale occurs, such as delivery, installation, invoicing, and support. Invoicing is issued once an obligation exists (goods shipped/services rendered). Therefore, by timing, it is a post-sales activity, even if administratively handled by finance or billing teams.

Step-by-Step Solution:

Verification / Alternative check:
ERP systems (e.g., SAP, Oracle) generate invoices from delivery or service confirmation documents, validating invoicing as a downstream step relative to the sale.

Why Other Options Are Wrong:

• Pre-sales activity: Occurs before order and delivery; invoicing follows delivery.
• Job of finance department: May be true organizationally but does not answer the timing classification.
• All/None: Incorrect because only post-sales fits the timing dimension.

Common Pitfalls:
Equating organizational ownership with process timing; issuing invoices before delivery without contractual justification, risking disputes.

Final Answer:
post-sales activity