Percentage of billed/invoiced line items offering a discount

This measure calculates the percentage of line items on an invoice/bill that offer a discount. A discount is a reduction in the amount of an invoice/bill to be paid if the entire amount is paid within a specified time period. An example would be "2% ten, net 30," where paying an invoice within 10 days earns a 2% discount. An invoice line item is a single entry on an invoice. For example, an invoice for 10 red books at $1.00 each, and 20 blue books at $3.00 each, would be considered to have two invoice line items. This measure is part of a set of Supplemental Information measures that help companies evaluate additional variables not covered elsewhere for the "invoice customer" process, which involves preparing detailed reports of customer purchases and commercial documents between sellers and customers that detail their transactions.

Benchmark Data

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Measure Category:
Supplemental Information
Measure ID:
101870
Total Sample Size:
1,595 All Companies
Performers:
25th Median 75th
- - -
Key Performance Indicator:
No

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Compute this Measure

Units for this measure are percent.

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Percentage of invoice line items received that offer a discount

Key Terms

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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 (7.3.1)

  • 9.2.2.1 - Maintain customer/product master files (10794)
  • 9.2.2.2 - Generate customer billing data (10795)
  • 9.2.2.3 - Transmit billing data to customers (10796)
  • 9.2.2.4 - Post receivable entries (10797)
  • 9.2.2.5 - Resolve customer billing inquiries (10798)