How to use the Order-to-Cash Cycle Time Calculator
- Enter average days for each stage.
- Enter average daily revenue.
- Read total cycle, bottleneck and cash tied up.
How it works
Total O2C days = sum of stage days (order entry, credit check, fulfilment, invoicing, payment and cash application). Cash tied up = Total days × Average daily revenue.
Worked example
Stages of 1, 1, 5, 3, 42 and 2 days total 54 days; at 50,000 daily revenue, 2.7 million is tied up and payment is the bottleneck.
Good to know
Attack the longest stage first.
Invoicing delays after delivery are often the easiest win.
Use averages from your own order data.
Frequently asked questions
The end-to-end process from customer order to cash received and applied.
Order management, credit, fulfilment, invoicing, collections and cash application.
Automate order entry and credit checks, invoice at delivery and speed up collections.
Results are estimates for information only and are not accounting, financial or legal advice.