**Checks processed per cash application personnel**—the formula to calculate this metric is:

*Actual number of checks processed / Total number of cash application personnel*

**Transactions per cash application personnel**—the formula to calculate this metric is:

*(Actual number of checks processed + Annual number of invoices processed + Annual number of credit memos processed + Number of deductions removed during a year) / Total number of cash application personnel** *

**Sales per cash application personnel**—the formula to calculate this metric is:

*Annual credit sales / Total number of cash application personnel*

Another, more complex cash application KPI is the cash conversion cycle (CCC). It is a metric that measures how long it takes to produce and sell a product or service, then convert it into cash. In a recent ARO2C performance metrics survey, 13 percent of the 180 respondents reported they tracked CCC. Ten percent of the participants included CCC in their top five metrics.

**The formula used to calculate CCC is:**

*DIO + DSO - DPO*where DIO represents days inventory outstanding; DSO represents days sales outstanding; and DPO represents days payable outstanding.

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