Payment variance benchmarks: Who’s handling them and how
You and your team are numbers people, so it’s pretty obvious when the amount of a payment doesn’t match what you’ve billed.
Enter the payment variance. Some can be resolved in a few seconds (when it’s a simple math mistake); others can eat up tons of time to handle (when a vendor is short-paying over an alleged quality problem).
So how are your peers handling variances these days?
On Credit’s shoulders
A recent poll by the National Association of Credit Management (NACM) offers some insight.
When members were asked how they handle payment overages (and
the occasional shortage), here’s what they said:
• 53% let the credit department resolve it
• 23% track and resolve by reason type
• 7% have a maximum dollar writeoff, while
• 3% have a separate dispute resolution team.
Of course, you might take several of these approaches simultaneously to protect your company’s cash flow.
One case for having a specific dedicated staffer: Companies who do this say they recoup 50%-60% of the money in dispute, compared to nothing at all.
Info: NACM eNews, 1/27/22
- Share on
Free Training & Resources
White Papers
Provided by Anaplan
Further Reading
Businesses are looking for competent number-crunchers. Some are even desperate to find talent. But the next wave of finance professionals i...
Full disclosure: We never know for certain which topics will grab the attention of CFOs, controllers and other finance professionals. O...
Finding and securing talent is always at or near the top of CFOs’ list of concerns. Could removing college degree requirements from ...
Sales tax compliance is a demanding job for finance teams like yours. For example, comparing the number of tax rate changes across the U...
In case your finance team had been in cruise control heading into year-end because IRS’s quarterly interest rates hadn’t change...
Federal rulemakers are requiring more transparency and detail in companies’ audits. Turns out all that extra detail is exactly what i...
