What Is Quote-to-Cash?
Quote-to-cash (QTC) is the end-to-end business process that begins when a salesperson creates a quotation and ends when the company receives payment. In Odoo, this workflow spans four modules: Sales, Inventory, Accounting, and optionally CRM. When configured correctly, each step triggers the next automatically, eliminating manual handoffs and reducing the sales cycle by days or even weeks.
The Complete QTC Flow in Odoo
The standard Odoo quote-to-cash process follows seven stages. Each stage generates specific documents and triggers downstream actions.
Stage 1: Quotation Creation
A salesperson creates a quotation (SO in draft state) either from scratch or directly from a CRM opportunity. The quotation includes customer details, product lines, quantities, unit prices, taxes, and payment terms. Odoo supports quotation templates for standardized proposals — a manufacturing company might have templates for custom orders, stock items, and service contracts.
Stage 2: Quotation Sent
The salesperson sends the quotation to the customer via email or through the customer portal. Odoo tracks when the customer opens the quotation and which pages they view. The portal allows the customer to accept, reject, or request changes directly. An online signature option eliminates the need for printed documents.
Stage 3: Sales Order Confirmation
When the customer accepts, the quotation converts to a confirmed sales order. This single action triggers multiple downstream processes: a delivery order is created in Inventory, and depending on your invoicing policy, a draft invoice may be generated. For make-to-order products, a manufacturing order or purchase order is also created automatically.
Stage 4: Delivery
The warehouse team picks, packs, and ships the goods based on the delivery order. Odoo supports single-step delivery (ship directly) or multi-step workflows (pick, pack, ship). Partial deliveries create backorders automatically. Each delivery updates the sales order status so the salesperson always knows what has shipped.
Stage 5: Invoicing
Invoices can be generated based on ordered quantities (invoice before delivery) or delivered quantities (invoice after delivery). For service companies billing on timesheets, invoices reflect actual hours logged against the sales order. Odoo creates the invoice with all relevant details pre-filled from the sales order.
Stage 6: Payment
Customers pay through multiple channels: online payment via the customer portal, bank transfer, check, or credit card. Odoo matches incoming payments to open invoices through bank reconciliation. Payment follow-up rules send automatic reminders for overdue invoices at configurable intervals.
Stage 7: Revenue Recognition
Once payment is received and reconciled, the revenue cycle is complete. Odoo updates the customer balance, marks the invoice as paid, and records the revenue in the correct accounting period. Deferred revenue rules handle subscriptions or long-term contracts that span multiple periods.
Configuration Checklist
| Setting | Location | Recommendation |
|---|---|---|
| Invoicing policy | Sales > Settings | Delivered quantities for physical goods |
| Online payment | Sales > Settings | Enable for faster collection |
| Payment terms | Accounting > Configuration | Net 30 is standard B2B |
| Quotation templates | Sales > Configuration | Create per product category |
| Delivery method | Inventory > Settings | Match your warehouse layout |
| Follow-up levels | Accounting > Configuration | 7, 14, 30 day reminders |
Common Pitfalls
- Invoicing policy mismatch — Setting ordered quantities when you do partial deliveries creates premature invoices.
- Missing payment terms — Without default payment terms, due dates are set to the invoice date, causing immediate overdue status.
- No follow-up rules — Unpaid invoices sit unnoticed without automated reminders.
- Skipping bank reconciliation — Payments received but not reconciled leave invoices showing as unpaid.
Automation Opportunities
Enable automatic invoice creation in Settings to generate invoices as soon as delivery is validated. Set up payment provider integration so customers pay directly from the quotation email. Use automated actions to notify the finance team when high-value orders are confirmed. Configure email templates for each stage transition to keep customers informed without manual effort.
DeployMonkey + Quote-to-Cash
Deploy Odoo on DeployMonkey and let the AI agent configure your quote-to-cash workflow end to end. From quotation templates to payment follow-up rules, get the entire sales cycle automated on your first day.