What is the first step in the Accounts Receivable business process flow?

The first step in the Accounts Receivable business process flow is the creation of a Sales Order. This step is crucial as it marks the initiation of the transaction with the customer. A Sales Order represents the agreement between the company and the customer detailing the products or services ordered, quantities, and prices. This document serves as the basis for subsequent steps in the accounts receivable process, leading to the creation of invoices and the acceptance of customer payments.

In many organizations, processing a Sales Order is essential for inventory management and ensures that the services or goods requested are effectively allocated and tracked. This initial step also facilitates clear communication regarding what the customer is purchasing, which helps prevent discrepancies later on in the invoicing and payment phases.