BPOI – 004 Order to Cash (O2C) (2020-21)

TUTOR MARKED ASSIGNMENT (2021)
Order to Cash (O2C)
Maximum Marks: 100 Course Code: BPOI – 004
Weight age: 30% January 2021/ July 2021
Note: This assignment covers all of Course 4. All questions are compulsory. Marks assigned
to the questions have been shown in the bracket.

Q1. Fill in the blanks: (1×5=5)
i. The credit function is also cynically called as ————————————–
ii. ———————– is also called as ‘acid test ratio’.
iii. The effectiveness of the collection process is measured through a tool called ——————.
iv. A business gets its fund by —————— assets.
v. —————– is the most important quality measure for the customer setup process.
Q2. True or False: (1×5=5)
i. Cash Application is a part of the pre-invoicing stage
ii. Credit limit is the monetary limit of the credit extended to a customer.
iii. Credit risk is mitigated by doing credit appraisal on continuous basis for the existing customers.
iv. Poor quality control can result in customer dissatisfaction.
v. Sending PO to seller does not constitute a legal offer to buy products or services.
Q3. Write short notes on: (In about 200 -250 words) (10×3=30)
i. Penetration Rate
ii. Query Resolution Process in O2C cycle
iii. Two tools used for O2C outsourcing
Q4. Differentiate between: (10×2=20)
i. Partial credit note and Full credit note
ii. Credit risk and Internal Control risks
Q5. Explain in detail the Stages in Order to Cash Cycle? (20)
Q6. What are the various stages where quality checks are implemented in the O2C cycle? Explain
any three stages in detail? (5+15=20)