Analytics Best Practice: Order-to-Cash Performance & more KPI’s

I am often asked what are the relevant reports or metrics we need to track while integrating between the Order-to-Cash process. Here is a list of reports that you will find useful while thinking through your business integration needs – mainly between CRM or eCommerce applications like Salesforce and Accounting systems like QuickBooks, Intacct or others.

Performance measures for assessing the overall order-to-cash process, order entry-billing, accounts receivable, credit and collections, and inventory accounting.

Order-to-cash

• Total order-to-cash process cost as a percentage of revenue
• Total order-to-cash process cost per order-to-cash FTE
• Days sales outstanding (DSO)
• Operating cycle
• Percentage of order-to-cash key controls that are automated

Order entry – billing

• Total order entry – billing cost as a percentage of revenue
• Total order entry – billing cost per order entry – billing FTE
• Total order entry – billing cost per customer invoice
• Order processing cycle time
• Order-to-fulfillment cycle time
• Order-to-bill cycle time
• Number of days between shipment or service and billing
• Order-to-cash cycle time
• Number of customer invoices per order entry – billing FTE
• Order entry – billing span of control
• Percentage of order entry – billing FTEs in shared services
• Number of separate order entry locations
• Number of separate billing locations
• Number of separate instances of order entry systems
• Number of separate instances of billing systems
• Number of separate customer master files
• Percentage of customers on standard terms

Accounts receivable

• Total accounts receivable subprocess cost as a percentage of revenue
• Total accounts receivable subprocess cost per accounts receivable FTE
• Total accounts receivable subprocess cost per receipt processed
• Total accounts receivable subprocess cost per customer invoice processed
• Average days unapplied cash
• Percentage of customer receipts received electronically
• Methods used for collecting receipts
• Number of receipts per accounts receivable FTE
• Number of customer invoices per receipt
• Percentage of errors in posting receipts
• The average number of days from customer-initiated deduction to resolution
• Accounts receivable span of control
• Percentage of accounts receivable FTEs in shared services
• Number of separate accounts receivable locations
• Number of separate instances of accounts receivable applications

Credit and collections

• Total credit and collections subprocess cost as a percentage of revenue
• Total credit and collections subprocess cost per credit and collections FTE
• Total credit and collections subprocess cost per past-due account
• Total credit and collections subprocess cost per account placed for third-party collection
• The bad-debt expense as a percentage of revenue
• Average days of past-due accounts
• Percentage of invoices paid within bill period- value
• Percentage of invoices paid within bill period- volume
• The average number of days until an invoice would be considered past due
• The average number of days until an invoice would be placed for third-party collection
• The average number of days until an invoice would be written off
• Credit and collections span of control
• Percentage of credit and collections FTEs in shared services
• Number of separate credit and collections locations
• Number of separate instances of credit and collections applications

Inventory accounting

• Total inventory accounting cost as a percentage of revenue
• Obsolescence write-offs as a percentage of revenue
• Annual inventory turnover
• Days inventory on hand (DIO)
• Days to compile a year-end inventory
• Number of separate inventory accounting locations