itsual Order-to-Cash
Overview
Order-to-cash (O2C) connects winning the deal to collecting the cash. Weak O2C creates disputes, delays, and silent revenue leakage.
When to Use
- Billing accuracy problems
- DSO improvement programs
- Quote-to-order handoff issues
- Revenue leakage investigations
Core Practices
- Align contract, order, and invoice data
- Bill promptly and clearly
- Prevent and resolve disputes quickly
- Segment collections strategies by customer risk/size
- Measure order-to-invoice and invoice-to-cash times
Principles
- Most collection problems start as upstream process problems
- Clarity on the invoice reduces days outstanding
- Sales–finance handoff quality determines billing quality
- Cash application accuracy matters for customer trust
Verification
- Billing error rate is tracked
- DSO drivers are understood by segment
- Dispute resolution has clear ownership