Lead-to-cash/Stage 3 of 7

Order & Contract

Signed terms, purchase orders, and the handoff to billing.

What happens at this stage

Once the client says yes, the order and contract stage locks in what was sold: the signed agreement or SOW, the purchase order from the client, payment terms, and any changes to scope along the way.

This is the handoff most teams get wrong. The contract lives in one system, the PO in an inbox, and billing works from memory, so the invoice does not match what the client agreed to pay for.

Where it usually breaks

  • The PO number and billing terms never reach whoever creates the invoice.
  • Mid-term upgrades, downgrades, and scope changes are not prorated or re-papered.
  • Payment terms are set per deal with no benchmark, so they quietly stretch.

Metrics to watch

  • Time from signature to first invoice
  • Deals with a PO on file before invoicing
  • Average contracted payment terms