Order-to-cash is how a customer enquiry becomes money in the bank. Every hand-off between sales, stores and accounts is a place where time and invoices get lost.
The flow
- Quotation with prices and terms.
- Sales order confirmed and stock reserved.
- Dispatch or delivery with e-way bill when needed.
- GST invoice raised from the delivery.
- Payment recorded and matched to the invoice.
- Follow-up on overdue amounts.
Where delays happen
| Hand-off | Typical delay | ERP fix |
|---|---|---|
| Order to stores | Order passed on by message | Order appears in stores queue automatically |
| Dispatch to invoice | Invoice raised days later | Invoice generated from the dispatch |
| Invoice to collection | Nobody tracks due dates | Ageing report and reminders |
| Returns | Credit note done separately | Return linked to the original invoice |
Numbers worth tracking
- Order-to-invoice time
- Days sales outstanding (receivables divided by sales times days)
- Overdue amount by party and salesperson
- Share of orders dispatched on time
Making collections a routine
- Send the invoice with clear payment terms the same day as dispatch.
- Review the ageing report every week.
- Call or message customers before the due date, not after.
- Escalate to the sales owner when a party crosses the credit limit.
- Record the outcome of each follow-up against the invoice.
Putting follow-ups in the system makes them visible and removes the awkwardness of chasing from memory.
Tip: Look at the ageing report weekly rather than monthly. Overdue amounts are easiest to collect in the first few weeks.
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