Number of adjustments/deductions per FTE that performs the process "manage and process adjustments/deductions"

This measure calculates the number of adjustments/deductions per full-time equivalent (FTE) employee that performs the process "manage and process adjustments/deductions," which consists of creating and providing funds for necessary adjustments and deductions, including all expenses that were required for the business at certain point in time. 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. This measure is part of a set of Staff Productivity measures that help companies assess the efficiency of their staff related to the "manage and process adjustments/collections" process.

Benchmark Data

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Measure Category:
Staff Productivity
Measure Id:
100880
Total Sample Size:
1,258 All Companies
Performers:
25th
Median
75th
Key Performance
Indicator:
No

Compute this Measure

Units for this measure are adjustments/deductions.

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Number of adjustments/deductions / Number of FTEs who perform the process "manage and process adjustments/deductions"

Key Terms

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FTE - (full-time equivalent employee)

To calculate the number of full-time equivalents employed during the year for each respective process or activity, you must prorate the number of employees and the hours spent performing each process/activity. Assume that a full-time worker represents 40 hours per week. Provide the average number of full-time equivalents employed during the year for each respective process. Include full-time employees, part-time employees, and temporary workers hired during peak demand periods. Allocate only the portion of the employee's time that relates to or supports the activities identified for an applicable process. Prorate management and secretarial time by estimating the level of effort in support of each activity, by process.

For example, a part-time secretary in the finance department for XYZ, Inc. charges all of his time to finance department activities. He works 20 hours per week. The secretary splits his time evenly supporting employees working in the general accounting process and the financial reporting process. Thus, his time should be allocated by process. So, if he works throughout the year and supports these two processes, his time would be split evenly as:

20hrs/40hrs = .5FTE * 50% for general accounting = .25FTE for general accounting

20hrs/40hrs = .5FTE * 50% for financial reporting = .25FTE for financial reporting

Staff Productivity

Staff Productivity is a measure of the efficiency of individuals performing specific processes. Measures in staff productivity generally relate the transaction volume or outcome of the process with the effort in terms of full time equivalent employees to perform the process.

Measure Scope

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Cross Industry (7.3.0)

  • 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.