Total uncollectable balances as a percentage of revenue

This measure calculates total uncollectable balances as a percentage of revenue. Uncollectable balances are amounts owed to your business unit for goods or services already delivered that will not be collected; an account is considered uncollectable after all reasonable methods of collecting the balance have been unsuccessfully employed. 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:
104166
Total Sample Size:
7,781 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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(Total value of uncollectable balances / Total business entity revenue) * 100

Key Terms

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Total annual revenue is net proceeds generated from the sale of products or services. This should reflect the selling price less any allowances such as quantity, discounts, rebates and returns. If your business entity is a support unit and therefore does not directly generate revenue, then provide the revenue amount for the units you support. For government/non-profit organizations, please use your non-pass-through budget. For insurance companies the total annual revenue is the total amount of direct written premiums, excluding net investment income. Note: Business entity revenue needs to only include inter-company business segment revenue when the transactions between those business segments are intended to reflect an arm's length transfer price and would therefore meet the regulatory requirements for external revenue reporting.

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 (7.3.1)

  • 9.2.4.1 - Establish policies for delinquent accounts (10804)
  • 9.2.4.2 - Analyze delinquent account balances (10805)
  • 9.2.4.3 - Correspond/Negotiate with delinquent accounts (10806)
  • 9.2.4.4 - Discuss account resolution with internal parties (10807)
  • 9.2.4.5 - Process adjustments/write off balances (10808)
  • 9.2.4.6 - Perform recovery workout (14007)
  • 9.2.4.7 - Manage default accounts (14008)