This measure helps companies calculate the percentage of customer accounts that are set up for automatic cash application, a process in which cash receipts from customers are coded so that the receivable amount from the customer is automatically decreased by the amount of the payment. It is part of a set of Process Efficiency measures that help companies optimize the performance of the process "collect and maintain customer account information" process by minimizing waste and refining resource consumption.
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Percentage of customer accounts set up for automatic cash application
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.