Percentage of invoices that is adjusted by the customer prior to payment

This measure calculates percentage of invoices that is adjusted by the customer prior to payment. An invoice is a bill prepared by a seller of goods or services and submitted to the buyer, generally, containing all pertinent information about the transaction including the date, price, quantity, item number, and credit terms. An invoice can be in either electronic or hard copy form. This Process Efficiency measure is intended to help companies minimize waste and refine resource consumption related to the process "Manage and process collections".

Benchmark Data

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Measure Category:
Process Efficiency
Measure ID:
106504
Total Sample Size:
2,347 All Companies
Performers:
25th Median 75th
- 3.0% -
Key Performance Indicator:
No
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Units for this measure are percent.

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Percentage of invoices adjusted by the customer prior to payment

Key Terms

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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 (8.0)

  • 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.