Percentage of invoices paid in full the first time

This measure calculates the total number of invoices paid in full the first time as a percentage of the total number of all invoices. An obligation is considered to have been paid in full first time if the entire balance of the receivable is paid by the customer in a single remittance. 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 group "Perform revenue accounting".

Benchmark Data

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Measure Category:
Process Efficiency
Measure ID:
106505
Total Sample Size:
1,000 All Companies
Performers:
25th Median 75th
- 92.0% -
Key Performance Indicator:
No
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Units for this measure are percent.

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Percentage of invoices paid in full the first time

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)

  • 9.2.1 - Process customer credit (10742) - Evaluating and processing requests for advances. Evaluate credit requests by customers requiring loans to buy products/services.
    • 9.2.1.1 - Establish credit policies (10789) - Creating guidelines for providing advances. Set up credit standards, credit terms, and collection policies.
    • 9.2.1.2 - Analyze/Approve new account applications (10790) - Checking and accepting new requests based on eligibility criteria. Analyze the status of applicants and requirements to be met for a new account.
    • 9.2.1.3 - Analyze credit scoring history (14187) - Reviewing past credit scores to determine the if a line of credit will be extended to potential customers. This could also include extending additional credit to existing accounts.
    • 9.2.1.4 - Forecast credit scoring requirement (14188) - Planning credit score requirements based on established credit policies.
    • 9.2.1.5 - Review existing accounts (10791) - Evaluating existing account holders and their past performance. Regularly review existing accounts to get the required information about the status at present.
    • 9.2.1.6 - Produce credit/collection reports (10792) - Preparing account payable reports about payments to be made according to accounting rules and principles, and providing the reports to management.
    • 9.2.1.7 - Reinstate or suspend accounts based on credit policies (10793) - Closing or restarting accounts according to changes made in credit policies.
  • 9.2.2 - Invoice customer (10743) - Preparing detailed reports of customer purchases. Prepare a commercial document between the seller and customer with details about transaction. Detail the quantity purchased, price of products/services, date, parties involved, unique invoice number, and tax information.
    • 9.2.2.1 - Maintain customer/product master files (10794) - Creating and updating a record of customers and the products being purchased by them in a database. This process element requires the organization to maintain a database of customers and their purchases. Such a master-file can be used to ensure customer touch point, enhance customer satisfaction, explore cross selling opportunities, and identify future trends. This database will include several particulars about the personal details of the organization's customers and a tracking of the products being sold.
    • 9.2.2.2 - Generate customer billing data (10795) - Preparing detailed reports about products purchased by customers. Record and generate a detail account of transactions made by customers fat a particular time and location. Include all details about products such as price, quantity, and name.
    • 9.2.2.3 - Transmit billing data to customers (10796) - Providing information to customers about purchases made by them. Communicate the details of purchases. Provide customers with a copy of details for their reference.
    • 9.2.2.4 - Post receivable entries (10797) - Registering transactions and their scheduled payments.
    • 9.2.2.5 - Resolve customer billing inquiries (10798) - Checking and solving billing queries raised by customers.
  • 9.2.3 - Process accounts receivable (AR) (10744) - 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.
    • 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.
  • 9.2.4 - Manage and process collections (10745) - Posting entries to respective accounts, and preparing accounts for receivables. Manage the cash collected by the business from its debtors. Record it in the books of accounts to provide clear information about the availability of the cash.
    • 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.
  • 9.2.5 - Manage and process adjustments/deductions (10746) - Creating and providing funds for necessary adjustments and deductions, including all expenses that were required for the business at certain point in time.
    • 9.2.5.1 - Establish policies/procedures for adjustments (10809) - Creating guidelines to follow in case of adjustments to business processes.
    • 9.2.5.2 - Analyze adjustments (10810) - Checking changes made in accounts during the year. Examine the alterations made in final accounts to rectify errors/omissions.
    • 9.2.5.3 - Correspond/Negotiate with customer (10811) - Providing suitable offers to customers. Present different offers (e.g., discounts) available for customers or buyers.
    • 9.2.5.4 - Discuss resolution with internal parties (10812) - Discussing and planning with internal parties (department heads, managers, and senior management) about rules to follow in coming months.
    • 9.2.5.5 - Prepare chargeback invoices (10813) - Creating a mechanism for consumer protection in case of a higher price charged. When a supplier sells a product at a higher price to the distributor than the price they have set with the end user, submit a chargeback to the supplier to recover the money lost in the transaction.
    • 9.2.5.6 - Process related entries (10814) - Recording business transactions as they occur in order to provide a balanced accounts for financial reporting.