Invoice accuracy examined.
Invoice accuracy remains a key concern for the industry,
particularly as efforts to synchronize data between trading partners in
crease. A report from the Grocery Manufacturers of America (GMA), titled
"Invoice Accuracy: 2000 Industry Survey and Bench marks,"
conducted by Prime Consulting Group Inc., Bannockburn, III., takes a
close-up look at the subject. The report notes that companies that
measure invoice accuracy use deductions as a percentage of sales, plus
deductions as a percent of total invoices. Ac cording to the study,
deductions, as a percentage of annual invoiced sales, were slightly
higher--at 8.5%--than in the prior year. And the number of deductions as
a percent age of total invoices increased by 10 points to 45%.
What will it take to improve the situation? Survey participants
that reported the lowest levels of deductions pointed to several busi
ness practices that result in improved invoice accuracy: reduced
complexity of pricing and promotional programs; improved information
systems; improvements in and increased use of EDI for data
synchronization; and increased emphasis on improving and measuring
invoice accuracy and deductions.