German-law context: This page relates to German law and German automotive claims practice. It provides operational information, not individual legal advice.
Days to Cash should be measured from clearly defined milestones and managed through documented approvals, invoice readiness, follow-up ownership and escalation.
Define the clock
Agree when measurement starts: repair order, repair completion or invoice date. Then measure payment receipt consistently. Mixed definitions make branch or team comparisons meaningless.
Remove preventable waiting time
Typical delays arise from missing approvals, incomplete documents, late supplements, unreviewed deductions and invoices that are technically complete but not ready for dispatch.
Create aging ownership
Every open receivable should have a current status, next action, responsible person and escalation date. Aging buckets alone do not create action.
Link operations and finance
Service, claims desk and accounts receivable must work from the same case status. A commercially complete job is not finished until documentation, invoice, open items and next steps are controlled.
Frequently asked questions
What is a good Days-to-Cash value?
There is no universal figure. It depends on claim mix, payer structure and internal process. The key is a consistent baseline and targeted improvement.
Does faster invoicing solve the problem?
Only partly. Invoice readiness, evidence quality, approval status and follow-up discipline are equally important.
Which KPI should management add?
Open claim value by age and by next-action status is often more actionable than an average alone.
Can R-SOS calculate the impact?
R-SOS can model the operational and financial effect for the repair business using its own data and assumptions.
