Pre-built SAP data model in Databricks
- Cost for processing a single invoice/cost per invoice: Cost-per-invoice is a key accounts payable metric and is the average cost of processing a single invoice through the organization.
- Aging for accounts receivable/accounts payable: The accounts receivable aging report outlines the amount of uncollected credits (unpaid customer invoices and other receivables), broken down by age range (number of delayed days like 0-30 and 31-60).
- Average profit margin: Profit margin indicates a company’s profitability and whether it made a profit. It’s the ratio of a company’s income (or profit) to its revenue. An average profit margin of a company is their profit margin over a long period.
- Days sales outstanding (DSO): DSO is a measure of the number of days it takes a company to collect its credit sales. It’s a key KPI in calculating cash conversion cycle.
- Monthly sales growth: This is among the most important KPIs used to measure a company’s growth. It’s the rate of change in sales for a month, compared to the previous month.
- Sales by contact method: A contact method is the “how” of communication with a customer. It ranges from in-person contact to telephone/email to self-service contact methods. ‘Sales by contact’ measures the revenue generated by each of the contact methods used by a company to communicate with its customers. It’s a key indicator of which contact methods bring in the most value in terms of revenue to the company.
- On-hand units: This refers to the gross number of units of a product available on hand in the warehouse inventory. It’s a good indicator of the capacity of the business to meet current and future demand. An optimal number of ‘on-hand units’ will be a number that helps meet current and to-be demand, as well as any unforeseen demand spike, while at the same time ensuring a product’s shelf life does not exceed acceptable limits.
- On-hand amount: While ‘on-hand units’ is the quantity of products in store, the ‘on-hand amount’ metric measures the value of goods/products stored in inventory. In addition to helping plan for demand, ‘on-hand amount’ identifies the cost of the products and weighs this against the possibility of wastages. This helps drive decisions around the acceptable risks of wastages to high value products vs. moderate/low-value products.
- Inventory turnover rate: This rate is a key supply chain metric that reveals how many times a company’s inventory was replaced (or turned over) in a certain period. That is, how many times has the company completely sold its inventory and stocked up again. It’s a key indicator of efficient use of a company’s assets.
- Average inventory: This is an estimate of the inventory on hand during a particular period. When viewed over a period of time, it’s a key metric that helps companies decide on inventory value and volumes, based on demand, seasonality, shelf life, and other factors.
- Stock to sales ratio: Every company needs to know if its inventory meets sales needs and maintain a healthy volume. The ‘stock to sales ratio’ is a crucial inventory management KPI which measures the value of inventory compared to the value of sales in a certain period. A low ‘stock to sales ratio’ indicates a healthy, strong movement of products from inventory to sales.
- Aging for invoice count: While ‘accounts receivable aging’ and ‘accounts payable aging’ reports provide aging data in terms of amount, the ‘invoice count aging’ report provides aging information in terms of number of invoices due (to be paid or received), broken down by age range. This helps identify customer credit risks (a customer with a consistently large number of due invoices may be a credit risk) and fine-tune collection/payment practices to improve the outcomes for the company.