I have been asked to see if there is a way of measuring invoice quality on our billing system.
We raise around 65000 invoices / credit note to clients and a significant number are incorrect invoices which a subsequent credit note and a final correction.
We have the following 4 outcomes and all have a common policy id known on our system as Cover Number (Insurance Policy). We want to assess for a 12 month period.
Scenario 1
Cover Invoice Amount
0045669 I00123456 500
We got the invoice correct 1st time
Scenario 2
Cover Invoice Amount
0045669 I00123456 500
0045669 I00123457 -500
0045669 I00123458 450
We got the invoice incorrect incorrect put through a credit note and then a correct invoice
Scenario 3
Cover Invoice Amount
0045669 I00123456 500
0045669 I00123457 -500
We invoiced correctly but the client did not pay so we put through a cancellation credit.
Scenario 3
Cover Invoice Amount
0045669 I00123456 500
0045669 I00123457 -500
We invoiced correctly but the client did not pay so we put through a cancellation credit.
Scenario 4
Cover Invoice Amount
0045669 I00123456 500
0045669 I00123457 50
We invoiced correctly and the client bought more cover later in the year.
There could be deviations from the above i.e. taking scenario 2 and then a piece of scenario 4 could also happen. The credit note could also go through several month later.
I am quite happy to accept that there is no perfect answer on this one has only the end user legitimately knows why we got the invoice incorrect but I am looking for a good indication.
My own thought process is that I need to consider all Cover Number's that have more than one invoice and that the following transaction is mirror reverse of the 1st transaction. I can probably do this the hard way but inquiring to see if there is a smart way.
