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:
1,781 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 (7.2.1)

  • 9.2.5.1 - Establish policies/procedures for adjustments (10809) - Creating guidelines to follow in case of adjustments to business processes.
  • 9.2.5.2 - Analyze adjustments (10810) - Checking changes made in accounts during the year. Examine the alterations made in final accounts to rectify errors/omissions.
  • 9.2.5.3 - Correspond/Negotiate with customer (10811) - Providing suitable offers to customers. Present different offers (e.g., discounts) available for customers or buyers.
  • 9.2.5.4 - Discuss resolution with internal parties (10812) - Discussing and planning with internal parties (department heads, managers, and senior management) about rules to follow in coming months.
  • 9.2.5.5 - Prepare chargeback invoices (10813) - Creating a mechanism for consumer protection in case of a higher price charged. When a supplier sells a product at a higher price to the distributor than the price they have set with the end user, submit a chargeback to the supplier to recover the money lost in the transaction.
  • 9.2.5.6 - Process related entries (10814) - Recording business transactions as they occur in order to provide a balanced accounts for financial reporting.