KPI Benchmarks : Billing Error Rate
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- Benchmark Average
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KPI Details : Billing Error Rate
Billing Error Rate measures the diligence of the Accounts Receivable (AR)Department in issuing bills to customers. Errors may include bills sent to the wrong address, incorrectly billed amounts, etc. Excessive billing errors may be indicative of a lack of controls within the AR function (e.g., lack of billing standards, outdated customer information, unenforced customer data quality, etc.), and lead to potential customer disputes and/or impact the organization’s ability to meet its short-term financial obligations. Highly manual or paper-based billing processes may also adversely impact the amount of errors produced by AR staff.
KPI Best Practices : Billing Error Rate
KPI Calculation Instructions Billing Error Rate?
KPI Formula :
Accounts Receivables Beyond 60 Days
The dollar amount of accounts receivable (i.e., money owed to the company) that are 60 or more days past due at a certain point in time divided by the total dollar amount of accounts receiva...
KPI Type : Quality
Formula : (AR Balance 60 or More Days Past Due / Total AR Balance) * 100
KPI Benchmark Range : 5.9%-25.2%