Other cost to perform the process "process accounts receivable (AR)" as a percentage of total process cost

This measure calculates other cost to perform the process "process accounts receivable (AR)" as a percentage of total process cost. Other cost refers to costs other than personnel, equipment, material, systems, or outsourced expenses for the process (e.g., costs for supplies and office equipment, travel, training, and seminars). The Process "process accounts receivable (AR)" includes [Processing payments due from customers. This includes all processing of funds received, whether by check or electronically. This does not include the generation of invoices.]. This Supplemental Information measure is intended to help companies evaluate additional variables related to the process "Process accounts receivable (AR)".

Benchmark Data

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Measure Category:
Supplemental Information
Measure Id:
105937
Total Sample Size:
599 All Companies
Performers:
25th
Median
75th
Key Performance
Indicator:
No

Compute this Measure

Units for this measure are percent.

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(Costs other than personnel, systems, overhead, and outsourced to perform the process "process accounts receivable (AR)" / Total cost to perform the process "process accounts receivable (AR)") * 100.0

Key Terms

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Other Cost

Other costs are costs associated with the specified process, but not specifically covered in personnel cost, systems cost, overhead cost and outsourced cost in this questionnaire. These other costs include costs for supplies and office equipment, travel, training and seminars. Include the cost of telephones, except for that portion captured in systems cost.

Supplemental Information

Supplemental information is data that APQC determines is relevant to decision support for a specific process, but does not fit into the other measure categories such as cost effectiveness, cycle time, or staff productivity.

Measure Scope

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Cross Industry (7.2.1)

  • 9.2.3.1 - Establish AR policies (10799) - Creating rules and regulations to be followed in case of credit sales to customers. Create rules and procedures to follow at the time of sale (e.g., the allowable number of installments).
  • 9.2.3.2 - Receive/Deposit customer payments (10800) - Collecting cash from customers. Deposit it into bank account. Make entries into the books of accounts.
  • 9.2.3.3 - Apply cash remittances (10801) - Checking and moving funds between countries for business activities, typically through authorized remittance agents.
  • 9.2.3.4 - Prepare AR reports (10802) - Preparing reports that detail balances due or what to collect from customers at a certain point in time.
  • 9.2.3.5 - Post AR activity to the general ledger (10803) - Preparing the general ledger for account receivables from journals. Place all journal entries related to accounts receivables in the general ledger accounts of a business.