# Finance and working capital — Radexus

> You chase the big invoices rather than the risky ones, and revenue leaks between the agreement and the invoice where nobody is measuring.

*Source: https://radexus.com/functions/finance/*

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[Where the number lives](https://radexus.com/functions/)  /  Finance and working capital

# Finance and working capital

You chase the big invoices rather than the risky ones, and revenue leaks between the agreement and the invoice where nobody is measuring.

- The number: **Days sales outstanding**
- Or: **value variance from quote to invoice**
- Who owns it: **CFO, controller, receivables, procurement**

Days sales outstanding. Agreed in writing, before anything is built.

## What this looks like from the inside.

If three or more of these are true, there is almost certainly a number here worth chasing.

-   *01*Collections are sequenced by invoice size, not by probability of payment.
-   *02*What was agreed and what was invoiced differ, and the difference is written off at year end.
-   *03*The same item is bought from four suppliers at four prices.
-   *04*Escalation and rebate entitlements expire unclaimed because assembling evidence takes too long.
-   *05*Retention money sits with clients because nobody owns chasing it.

## The number we would agree first.

The definition

Days sales outstanding on the agreed definition, or value variance between agreed price and invoiced price across the period. Excluded: intercompany and disputed items under legal process.

Why that one

Working capital is felt physically by an owner, and the cost of capital makes the arithmetic compelling without any heroic assumptions.

First meeting, no data from you

A receivables risk view on one export of your ageing: which invoices are genuinely at risk, as opposed to merely large.

## 7 plays that move it.

Each is built from the same nine patterns and reads the same memory. The first is priced as a pilot. Every one after it runs on a memory that already exists.

-   **Finance**Receivables prioritisation
-   **Finance**Order to cash reconciliation
-   **Finance**Collections sequencing
-   **Finance**Procurement spend consolidation
-   **Finance**Contract renewal leakage
-   **Finance**Price escalation and raw material claims
-   **Finance**Rebate and incentive capture

## A number in this function we have already moved.

[Success story  /  Auto components

### The escalation clause was in the contract. Nobody was claiming it.

Raw material increases were absorbed quarter after quarter because assembling the evidence took longer than the claim window allowed, and nobody had ever computed what that cost.

Read the success story](https://radexus.com/cases/escalation-claims/)

## Bring four customer names. We run the first play before we meet.

[Start a discovery](https://radexus.com/start/)[All eight functions](https://radexus.com/functions/)

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