20110426 fmv3 ar

FINANCIAL MANAGEMENT: ACCOUNTS RECEIVABLE

Metric ID Metric Name Formula PCF IDKPI

COST EFFECTIVENESS

Total cost of the process "process accounts receivable" per

customer receipt

5480 87.0220f / 87.0350

87.0220a / 87.0210Personnel cost of the process "process accounts receivable" per

"process accounts receivable" FTE

5482 ü 10744

87.0220f / (87.0050 * .001)Total cost of the process "process accounts receivable" per

$1,000 revenue

5484 ü 10744

87.0220a/ (87.0050 * .001)Personnel cost of the process "process accounts receivable" per

$1,000 revenue

5485 10744

87.0220b/ (87.0050 *

.00001)

Systems cost of the process "process accounts receivable" per

$100,000 revenue

5486 10744

87.0460f / (87.0050 * .001)Total cost of the process "manage and process collections" per

$1,000 revenue

5499 ü 10745

87.0590f / (87.0050 * .001)Total cost of the process "manage and process

adjustments/deductions" per $1,000 revenue

5500 ü 10746

87.0460a / (87.0050 * .001)Personnel cost of the process "manage and process collections"

per $1,000 revenue

5501 10745

87.0590a / (87.0050 * .001)Personnel cost of the process "manage and process


5502 10746

87.0460b / (87.0050 *

.00001)

Systems cost of the process "manage and process collections"

per $100,000 revenue

5503 10745

87.0590b / (87.0050 *

.00001)

Systems cost of the process "manage and process


5504 10746

87.0460f / 87.0480Total cost of the process "manage and process collections" per

active customer.

5509 10745

(87.0220f / 87.0050) * 100Total cost of the process "process accounts receivable" as a

percentage of revenue

5513 10744

87.0220f / (87.0050 *

.000000001)

Total cost of the process "process accounts receivable" per $1

Billion revenue

5514 10744

(87.0460f / (87.0050)) * 100Total cost of the process "manage and process collections" as a

percentage of revenue

5515 10745

87.0460f / (87.0050 *

.000000001)

Total cost of the process "manage and process collections" per

$1 Billion revenue

5516 10745

87.0220f / 87.0210Total cost of the process "process accounts receivable" per

"process accounts receivable" FTE

5517 10744

87.0460f / 87.0450Total cost of the process "manage and process collections" per

manage and process collections FTE

5518 10745

CYCLE TIME

Average days sales outstanding 5495 87.0250

87.0240Cycle time in days from transmission of invoice to receipt of

payment

5496 ü 10744

20110427/87 © 2011 APQC. ALL RIGHTS RESERVED.Note: PCF ID = Reference Number in the PCF

FINANCIAL MANAGEMENT: ACCOUNTS RECEIVABLE

Metric ID Metric Name Formula PCF IDKPI

CYCLE TIME

87.0610Cycle time in days to resolve adjustments 5512 10745

PROCESS EFFICIENCY

Percentage of total receipts that are processed error free the

first time

5489 (87.0360 / 87.0350) * 100

(87.0370 / 87.0350) * 100Percentage of receipts automatically matched to open items in

the accounts receivable sub ledger

5490 10744

87.0380Percentage of receipts received electronically or automatically 5491 10744

87.0210 / (87.0050 *

.000000001)

Number of FTEs for the process "process accounts receivable"

per $1 billion revenue

5492 ü 10744

(87.0310 / 87.0280) * 100Percentage of invoiced line items paid in full the first time 5493 10744

87.0250 / 87.0410Outstanding payment days as a proportion of standard payment

days

5494 10744

87.0450 / (87.0050 *

.000000001)

Number of FTEs for the process "manage and process

collections" per $1 billion revenue

5505 ü 10745

87.0580 / (87.0050 *

.000000001)

Number of FTEs for the process "manage and process

adjustments/deductions" per $1 billion revenue

5506 ü 10746

(87.0510 / 87.0050) * 100Total uncollectable balances as a percentage of revenue 5507 10745

(87.0300 / 87.0280) * 100Percentage of invoiced line items that are adjusted by the

customer prior to payment

5510 10745

STAFF PRODUCTIVITY

Number of customer accounts per "process accounts receivable"

FTE

5487 87.0390 / 87.0210

87.0350 / 87.0210Number of receipts processed per "accounts receivable" FTE 5488 ü 10744

87.0480 / 87.0450Total number of active customers managed annually per

"manage and process collections" FTE

5508 10745

87.0620 / 87.0580Number of adjustment and deductions processed annually per

"manage and process adjustments/deductions" FTE

5511 10745

SUPPLEMENTAL INFORMATION

Personnel cost of the process "process accounts receivable" as a

percentage of total cost for the process

5481 (87.0220a / 87.0220f) *

100

(87.0220b / 87.0220f) * 100Systems cost of the process "process accounts receivable" as a

percentage of total cost for the process

5483 10744

87.0280 / 87.0350Number of invoice line items per receipt 5497 10744

(87.0330 / 87.0280) * 100Percentage of invoiced line items that offer a discount 5498 10743


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benchmark in their functional membership at no cost.

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row-by-row comparison of your responses versus those of your peers. The data tables will feature your answers as well as indicate the

high, median and low performance ranges.

· Past participants have used open standards benchmarking research reports to set baselines for process improvement projects, to build

a business case for new initiatives, to prioritize high-impact opportunities, and even to validate success or return on investment from

efforts.


20110426 fmv3 ar

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