Percentage of discounts available that are taken
This measure calculates the percentage of available discounts that are taken. A discount is a reduction in the amount of an invoice/bill to be paid if the entire amount is paid within a specified time period. An example would be "2% ten, net 30," where paying an invoice within 10 days earns a 2% discount. An invoice (either electronic or hard copy) is a bill prepared by a seller of goods or services and submitted to the buyer. Generally, an invoice contains all pertinent information about the transaction including the date, price, quantity, item number, and credit terms. This Process Efficiency measure is intended to help companies minimize waste and refine resource consumption related to the process "Process accounts payable (AP)".
Benchmark Data
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Learn about Membership| 25th | Median | 75th |
|---|---|---|
| - | 65.0% | - |
Compute this Measure
Units for this measure are percent.
(Number of invoice line items that are paid within the discount period / Number of invoice line items received that offer a discount) * 100
Key Terms
Process efficiency represents how well a process converts its inputs into outputs. A process that converts 100% of the inputs into outputs without waste is more efficient than one that converts a similar amount of inputs into fewer outputs.
The metric value which represents the 50th percentile of a peer group. This could also be communicated as the metric value where half of the peer group sample shows lower performance than the expressed metric value or half of the peer group sample shows higher performance than the expressed metric value.