Latest Comments
lesbian courious teens, bryan
Amanah Raya to enter REIT market 3
opudohawb, qexmocruxlu, smoking
Rights Issue: Understanding Its Purpose, Mechanism & Difference Between Bonus Issue 6
gfhghgf, Aditya Dubey, rafi [...]
Difference Between ABC system versus Traditional based costing system 7
Narinder Singh, Malik Kashif, Ahmed [...]
Bonia Proposes Main Board Transfer, 1-for-2 bonus, Share Split 1
sickexceelM
Accounting Treatment & Work Flow on Write Off Bad Debts and Provision for Doubtful Debts 4
anita, Nandita, ezeokafor amrachi .i. [...]
Meta
Credit Management:What is the KPA and KPI of a Credit Manager?
Published by slang March 28th, 2006 in Credit Management, Finance Role/KPA/KPICLICK THIS TO GO TO THE MAIN PAGE ON ALL ARTICLES ON CREDIT MANAGEMENT/CREDIT CONTROL
In my article on the Role of Finance, I have included a topic on Targeted Performance Management (TPM).
By setting targets to the credit personnel employee, this will directly enable the objectives of the company to be achieved. The employee himself/herself will have a better focus and knows exactly what Managements wants from him/her and others.
The below suggest at least those KPA and KPI which you should put up in the TPM Worksheet of the Credit manager:
| KPA |
KPI |
Comments |
|
| 1 | Accounts Receivable Management |
Ageing % · To reduce the debts ageing % > 120-day from the current of 25% to 5% by the end of Qtr 4 ‘2006.DSO ·To achieve a DSO of 90-day as at the end of Qtr 4’2006 Aged analysis of Overdues:
Overdues as a % of Total debtors,
Disputed Debts (including Debit notes ) as a % of Total debtors
|
Out Performance- < 3% of total amount Exceeded Expectation– 3% - 5% of total amount Met Expectation– 5% of total amount Below Expectation– 5.01% - 20% of total amount Inadequate Performance- > 20% of total amount Out Performance - < 75 days Exceeded Expectation – 75 days to 89.99 days Met Expectation - 95 days Below Expectation – 95.1 days to 115 days Inadequate Performance - > 115 days |
You can also include some of the KPA/KPI of the Order-To-Cash Cycle into the above table. (please refer to my article on KPA/KPI on Order-To-Cash Cycle)
If you found this post useful, keep updated with future posts by subscribing to FMAccounting (for free) through RSS or email.
Related Entries
- ALL TOPICS COVERED IN HEADING-CREDIT MANAGEMENT/CREDIT CONTROL
- Measurements/KPI used in Credit Management/Credit Control
- Order-To-Cash Cycle: An Overview, Benefits, KPA and KPI
- KPA/KPI: Identifying Your “Customer”
- Topics Covered In This Heading:Cash Conversion Cycle(CCC)/Daily Working Capital(DWC)Cash Operating Cycle
Navigation
One Response to “Credit Management:What is the KPA and KPI of a Credit Manager?”
Please Wait
Leave a Reply