Billing Error Rate
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KPI Benchmarks : Billing Error Rate
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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billing errors may be indicative of a lack of controls within the AR function (e.g., lack of billing standards, outdated customer information, unenforced customer data quality, etc.), and lead to potential customer disputes and/or impact the organization’s ability to meet its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.
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?
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KPI's & Data
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 : Buy this instant download data-as-a-service product to find out now!
Credit & Collections
This workflow template illustrates the back office processes of new customer applications, credit checking, payment and collections performed by the Credit Department. Purchase and download...
Type : Workflow Template
Process Participants : Plant/Branch, Accounts Receivable, Credit Department
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