Cycle time in days to resolve adjustments

This measure calculates number of days it takes to resolve adjustments. An adjustment is when an amount is changed due to an error/miscommunication between two parties. Common examples involve freight and handling charges, discount terms, price, and other similar items. It is a Cycle Time measure that helps companies analyze the duration of the "manage and process adjustments/deductions" process from beginning to end.

Benchmark Data

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Measure Category:
Cycle Time
Measure ID:
100628
Total Sample Size:
2,768 All Companies
Performers:
25th
- Median
- 75th
-
Key Performance
Indicator:
No

Compute this Measure

Units for this measure are days.

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Cycle time in calendar days from identifying an adjustment to fully resolving and reflecting it in the accounting records

Key Terms

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Cycle Time

Cycle time is the total time from the beginning of the process to the end. This includes both time spent actually performing the process and time spent waiting to move forward.

Measure Scope

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Cross Industry (7.3.1)

  • 9.2.5.1 - Establish policies/procedures for adjustments (10809)
  • 9.2.5.2 - Analyze adjustments (10810)
  • 9.2.5.3 - Correspond/Negotiate with customer (10811)
  • 9.2.5.4 - Discuss resolution with internal parties (10812)
  • 9.2.5.5 - Prepare chargeback invoices (10813)
  • 9.2.5.6 - Process related entries (10814)