credit note invoice ratio

What Does Your Credit Note to Invoice Ratio Mean?

When developing the Credit Management Benchmark, I made the initial assumption that a high credit note to invoice ratio is not a good thing. After all, payments on invoices are normally delayed until credit notes are received and processed. There are also the costs associated with preparing, approving, recording, distributing and allocating credit notes.

However, there are some circumstances in which a high ratio is normal practice.
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sales team aligned credit team

5 Tips to Get the Sales Team Aligned with the Credit Team

It is clear from the results of the Credit Management Benchmark and from a review of various LinkedIn groups, that there is often conflict between sales and credit teams. Sales must have a laser-like focus on achieving their sales targets, and a task like credit screening is seen as a distraction. Even worse, declining to open a credit account for a customer can be seen by sales as the credit function creating barriers to their work.

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