Number of FTEs that perform the process "manage and process adjustments/deductions" per $1 billion revenue

This measure calculates the number of full-time equivalent employees (FTEs) per $1 billion revenue that perform 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. It is a Process Efficiency measure that helps companies optimize their "manage and process adjustments/deductions" process by minimizing waste and refining resource consumption.

Benchmark Data

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Measure Category:
Process Efficiency
Measure Id:
101043
Total Sample Size:
2,382 All Companies
Performers:
25th
Median
75th

Compute this Measure

Units for this measure are FTEs. Lower values are better.

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Number of FTEs who perform the process "manage and process adjustments/deductions" / (Total business entity revenue * .000000001)

Key Terms

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Total Annual Revenue/Net Revenue

Total annual revenue is net proceeds generated from the sale of products or services. This should reflect the selling price less any allowances such as quantity, discounts, rebates and returns.
For government/non-profit organizations, please use your non-pass-through budget. If your business entity is a support unit and therefore does not directly generate revenue, then provide the revenue amount for the units you support.For insurance companies the total annual revenue is the total amount of direct written premiums, excluding net investment income.
Note: Business entity revenue needs to only include inter-company business segment revenue when the transactions between those business segments are intended to reflect an arm's length transfer price and would therefore meet the regulatory requirements for external revenue reporting.

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

Process efficiency

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.

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.