Invoice to Cash
Getting the invoice to the customer and the money into the bank.
Workflow
- 01Invoice Transmission
- 02Payment Tracking
- 03Receipt Application
- 04Collections
- 05Receivables Clearing
If you change this
It implies 6 topics across 3 modules, including Customer Relationship Management and Supply Chain Management which you might not expect.
See the path ahead →The workflow
- 01
Invoice transmission
The invoice reaches the customer in the format and channel they can actually process.
- 02
Payment tracking
Expected receipts are monitored against terms.
- 03
Receipt application
Incoming payments are matched to invoices and applied.
- 04
Collections
Overdue accounts are worked to an agreed escalation path.
- 05
Receivables clearing
The receivable is cleared and the ledger agrees to the bank.
Most late payment is not a collections problem. It is an invoice the customer could not process — wrong purchase order reference, wrong format, wrong recipient — and it is cheaper to fix at transmission than to chase at day sixty.
What you need in place
- Customer-ready invoicing: Purchase order references and formats that match how the customer's payables team works, including e-invoicing where they use it.
- Automated matching: Receipts matched to invoices by rule, with a clean exception queue for the rest.
- Dunning and escalation: A defined collections path with owners, not ad-hoc chasing.
- Dispute management: Disputed invoices flagged and worked separately, so they do not distort ageing.
Metrics and KPIs to track
Days sales outstanding
Average days to collect after invoicing.
Aged receivables over terms
Value past due, split by reason.
Auto-match rate
Receipts applied without manual intervention.
Dispute value and age
Value under dispute and how long it has been there.
Bad debt write-off
Value written off as uncollectable.
Alongside this