Opportunity-to-Cash (O2C) is the end-to-end business process that spans from identifying a sales opportunity through to closing the deal and collecting payment. It connects the front office (sales, quoting, approvals) with the back office (billing, revenue recognition, and finance) — forming a critical bridge between sales activity and cash realization.
Connect Every Deal to Cash — with ServicePath™ CPQ+
Opportunity-to-Cash typically includes the following stages:
Lead Qualification & Opportunity Creation
Solution Configuration & Pricing
Quote Generation & Proposal Delivery
Approval Workflows (pricing, legal, margin, etc.)
Contract Execution
Order Management
Invoicing & Billing
Revenue Recognition & Collection
Each step must be aligned for revenue to flow — with minimal friction, delay, or margin leakage.
Why Opportunity-to-Cash Matters in Enterprise Sales
In complex B2B organizations, disconnected processes between CRM, CPQ, contracts, and billing create revenue delays, errors, and missed targets. A streamlined O2C process:
🔁 Reduces handoff friction between departments
📉 Minimizes errors in pricing, configuration, and billing
📈 Accelerates cash flow and revenue recognition
🔍 Enhances visibility into deal status and financial impact
🔒 Strengthens compliance with audit trails and governance
O2C isn’t just a process — it’s your revenue engine.
Opportunity-to-Cash and ServicePath™ CPQ+
ServicePath™ CPQ+ plays a central role in O2C by acting as the connective tissue between opportunity creation and revenue realization.
With ServicePath™ CPQ+, organizations can:
🔗 Align pricing logic, margin thresholds, and discounting with finance strategy
🧾 Automate quote-to-contract workflows with audit-ready governance
📊 Push approved quotes directly into ERP and billing systems
📅 Support ramped contracts, renewal logic, and multi-term agreements
💸 Deliver visibility into revenue impact at the quoting stage
No quoting silos. No lost margin. Just a clean path from deal to dollars.
FAQs About Opportunity-to-Cash
Q1: What’s the difference between O2C and Q2C?
A: O2C starts earlier — at opportunity creation — while Q2C typically begins at quote configuration. O2C offers a more complete view of the revenue lifecycle.
Q2: Why is O2C critical for enterprise SaaS or services?
A: It ensures that as deals grow more complex (multi-term, usage-based, subscription), revenue still flows cleanly and predictably from CRM through billing.
Q3: What systems are involved in O2C?
A: CRM, CPQ, CLM, ERP, billing platforms, and revenue recognition tools — all ideally integrated.
Q4: Can ServicePath™ CPQ+ improve O2C cycle time?
A: Yes — by eliminating quoting rework, automating approvals, and syncing contract data with finance.
Conclusion: From Pipeline to Profit — Without the Gaps
Revenue doesn’t begin when a contract is signed — it starts the moment an opportunity is created. A strong O2C process removes delays, increases accuracy, and connects quoting directly to cash flow.
With ServicePath™ CPQ+, you empower sales, finance, and operations with a single workflow that drives revenue from first call to final payment.
