20: Amortization & One-time Payments: How outdated software costs you money – and how to prevent it
A look at the reality of many automotive suppliers shows: Amortization and one-off payments are often an underestimated source of profit losses....
2 min read
Erik Reiter
:
Jun 27, 2025 6:00:00 AM
Just imagine: A project is successfully completed, the customers are satisfied and production is running. But months later, someone accidentally discovers an old Excel list in a wheelie bin - containing a long overdue invoice for tools worth €750,000. Not accounted for, not posted in the ERP, not in the cash flow. One-off payments that were simply forgotten.
An isolated case? Unfortunately not. Discussions with many automotive suppliers have shown that this scenario occurs in a similar form more frequently than you might think. The cause is a lack of transparency - from the quotation phase (RfQ) to the final invoice.
One-off payments such as tool costs, development lump sums or start-up support are part of day-to-day business in the automotive industry. However, although these payments often amount to considerable sums, they are surprisingly often invoiced too late or not at all.
There are many reasons for this:
Information about one-off payments is often "hidden" in emails, Excel files or old quotation documents.
Transfers between sales, project management and controlling are prone to errors.
Systems are not linked or do not provide a cross-project overview.
The result: liquidity bottlenecks, missed earnings and unnecessary management escalations. It becomes particularly critical when tools or development services have already been provided, but the associated one-off payments have never been claimed from the customer - simply because they have been lost sight of.
At a time when margins are under pressure, interest rates are rising and investments need to be carefully considered, a structured approach to one-off payments is not a "nice-to-have", but a business-critical success factor.
Missed one-off payments not only have an impact on cash flow, but also directly on EBIT. This is not only risky for day-to-day business, but can also jeopardize strategic growth plans - for example, if there is a lack of liquidity for new projects or innovations.
What do automotive suppliers need to solve this problem sustainably? The answer is clear: transparency across all one-off payments - from the first offer to invoicing.
In concrete terms, this means
Clear recording of all one-off payments as early as the RfQ phase
Every amount that is to be invoiced later must be systematically recorded at an early stage - ideally directly in the quotation tool and with a clear link to the project.
Continuous tracking across all project phases
Changes in the project, new requirements or changed customer conditions must not lead to one-off payments being "lost". A central system must track these payments - regardless of how many departments or systems are involved.
Automatic reminders and escalation processes
If a PPAP (Production Part Approval Process) is due and the associated tool invoice has not yet been issued, the system must sound the alarm - not just weeks later in the month-end closing.
Cross-project cash flow overviews
A management cockpit that shows which one-off payments are due when (or would have been due long ago) is essential - for sales management as well as for controlling.
The one-off payment module from Digital Automotive - the leading solution for strategic sales planning and sales management in the automotive supply industry - offers precisely these functions.
The solution was developed by and for automotive suppliers and integrates seamlessly into existing processes. It ensures that one-off payments are not only recorded, but also invoiced on time and actively managed.
Some advantages at a glance:
Complete documentation of all one-off payments including status and responsibilities
Early warning systems for overdue or at-risk invoices
Integration with RFQ management, project management and finance
Intuitive cash flow overviews for management reports
One-off payments are not a marginal issue - they are a decisive factor in the success or failure of a project. If you manage to consistently create transparency here, you can secure millions, streamline processes and strengthen customer trust.
If you suspect that your company is also missing out on potential - talk to us. We will show you in a live demo how you can systematically solve this problem with Digital Automotive.
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