Revenue leakage

Revenue leakage is revenue an organisation is contractually entitled to but that, through administrative drift, never reaches the invoice or is billed too low. It is rarely fraud and almost always a structural pattern: the longer a contract runs without line-level control, the larger the accumulated gap. Causes range from missed indexation rounds and unbilled additional work to duplicate invoice lines, forgotten escalation clauses, and side letters that silently override the master agreement. In contract-heavy portfolios, structural leakage sits around 5.2 percent of annual revenue. See also: Solution — Revenue leakage.