Billing Error Rate

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KPI Benchmarks : Billing Error Rate

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Billing Error Rate

KPI Details

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billing errors may be indicative of a lack of controls within the AR function (e.g., lack of billing standards, outdated customer information, unenforced customer data quality, etc.), and lead to potential customer disputes and/or impact the organization’s ability to meet its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 Definition

The number of bills to customers sent by the Accounts Receivable (AR) Department that contain errors divided by the total number of bills sent to customers over the same period of time, as a percentage.

KPI Calculation Instructions Billing Error Rate?

KPI Formula :

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