Percentage of invoice line items that is adjusted by the customer prior to payment

This measure calculates the percentage of invoice line items adjusted by the customer prior to payment. 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 Process Efficiency measures that help companies optimize their "manage and process collections" process by minimizing waste and refining resource consumption.

Benchmark Data

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Measure Category:
Process Efficiency
Measure Id:
102155
Total Sample Size:
988 All Companies
Performers:
25th
Median
75th

Compute this Measure

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

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Percentage of billed/invoiced line items that are adjusted prior to paying

Key Terms

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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)

  • 9.2.4.1 - Establish policies for delinquent accounts (10804) - Creating a process to follow in case of a failed payment by account holders. Create rules and regulations for the account holder who has failed to make at least the minimum monthly payment by the due date.
  • 9.2.4.2 - Analyze delinquent account balances (10805) - Examining balance statements of accountholders who failed to make required payments. Study or review the account details of customers' past payments when preparing negotiations policies.
  • 9.2.4.3 - Correspond/Negotiate with delinquent accounts (10806) - Determine ways for customers in default to repay debts (e.g., allowing more time or discounts).
  • 9.2.4.4 - Discuss account resolution with internal parties (10807) - Determining rules for handling accounts. Discuss and plan with internal parties (department heads, managers, and senior management) about rules to follow in coming months.
  • 9.2.4.5 - Process adjustments/write off balances (10808) - Maintaining reserves for write-offs and adjustments. Adjust or write off certain expenses and losses.
  • 9.2.4.6 - Perform recovery workout (14007) - Renegotiating the terms of a loan agreement in order to recoup money from a default account.
  • 9.2.4.7 - Manage default accounts (14008) - Managing accounts that have not met the requirements agreed upon to pay off outstanding debts.