Discount leakage
Discounts above policy or approved band, discounts applied without authorisation, and cumulative discounting that erodes contracted margin.
RISK COVERAGE
Revenue & Cash Leakage Analytics
Revenue leakage is money you already earned and never collected. These analytics find it in the billing and credit data you already have.
Order-to-cash leakage is harder to see than cost leakage because nothing leaves the bank. Revenue simply never arrives. A discount exceeds policy. A shipment is delivered but never invoiced. A credit note is issued twice for the same dispute.
foretale.ai tests the full order-to-cash chain — order, delivery, invoice, credit, and receipt — for the gaps where earned revenue is lost or given away.
WHAT WE DETECT
Risks tested in this domain
Underbilling and missed billing
Goods delivered or services rendered with no corresponding invoice, quantity billed below quantity shipped, and contract escalations never applied.
Overbilling and pricing errors
Prices inconsistent with contract or price master, incorrect tax treatment, and duplicate invoice lines.
Duplicate and unsupported credit notes
Credits issued more than once for the same dispute, credits without documented approval, and credits issued near period end.
Accounts receivable and collection risk
Ageing concentration, customers exceeding credit limits, repeated payment term extensions, and write-offs lacking approval.
Unapplied cash
Receipts never matched to invoices, on-account balances that persist across periods, and misapplied payments.
HOW IT RUNS
Understand → Plan → Execute → Explain
foretale.ai maps your data and relationships, plans the analytics for this domain, tests the full population, and returns findings with evidence attached. Your team keeps every judgement.
DATA USED
What we need from your systems
- Sales orders and contracts
- Delivery and shipment records
- Customer invoices and lines
- Credit and debit notes
- Price master and discount policy
- Receipts, cash application, and AR ageing
Related reading
Frequently asked questions
What is revenue leakage?
Revenue leakage is earned revenue that a business never collects because of process or control failure rather than customer default. Common causes are unbilled deliveries, discounts applied beyond policy, contract price escalations never implemented, duplicate credit notes, and cash received but never applied to an invoice.
How do you find unbilled deliveries?
By reconciling delivery and shipment records against customer invoices over the same period. Deliveries with no matching invoice line, or with a billed quantity lower than the shipped quantity, are the direct signal. Testing the full population rather than a sample is important, because individual gaps are small and easy to miss.
Can discount policy be tested if it is not held in the ERP?
Yes. Approved discount bands and policy documents can be provided as context, and analytics then test invoiced discounts against them. This is a common situation, because commercial policy often lives outside the transactional system.
Does this replace our AR ageing report?
No. Ageing reports show where balances sit; these analytics explain why. They test whether credit limits were respected, whether terms were extended without approval, whether credits were legitimate, and whether receipts were correctly applied.
NEXT STEP
See it on your data.
Request a focused walkthrough—usually within one business day.