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§ 04 — Area 04 / 06

Order-to-Cash: Invoicing, collection, DSO

Revenue isn't cash.

A sale only becomes financially useful when billing, collection and cash visibility work together.

CONTRACTINVOICERECEIVABLECASH
§ A — The mission

The full path from signed contract to collected cash, redesigned to reduce delays, leakage and avoidable disputes.

§ B — Workstreams & deliverables

Workstreams & deliverables.

04.01

Process design

Missions

  • ·Map the current state and its failure points
  • ·Set invoicing triggers, timing and supporting documents
  • ·Create tiered dunning from reminder to escalation
  • ·Assign dispute owners and resolution deadlines

Deliverables

  • Documented process
  • Responsibility matrix
  • Dunning templates
04.02

Controls

Missions

  • ·Check completeness across contracts, deliveries and invoices
  • ·Separate issuing, collecting and allocating duties
  • ·Review aged balances and bad debt provisions
  • ·Build controls into the close calendar

Deliverables

  • Control plan
  • Commented aged balance
  • Tracking sheet
04.03

DSO reduction

Missions

  • ·Split DSO into issuing delay, terms, late payment and disputes
  • ·Analyse by customer, segment and payment method
  • ·Renegotiate terms and deposit arrangements
  • ·Track a quantified action plan and monthly cash gained

Deliverables

  • DSO diagnostic
  • Prioritised action plan
  • Cash-gain tracking
§ C — What is in your hands at the end

What is in your hands at the end.

  • →Invoices issued on time and a dunning process that runs on its own.
  • →Days taken out of DSO, with the cash gained tracked month by month.

Talk about Order-to-Cash.

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