This guide will help you understand the core of Receivable Performance Management (RPM), unpack common challenges, and explore smarter, faster ways to turn receivables from a stress point into a strategic asset.
At its core, Receivable Performance Management refers to how effectively your company collects the money it's owed. It covers everything from how quickly you send invoices to how well you handle deductions and disputes.
Think of it as the health checkup for your cash flow, tracking Key Performance Indicators (KPIs) that show how strong (or weak) your receivables process is. Here are five key metrics that matter most:
What it is:
DSO tells you how many days, on average, it takes to collect payment after a sale.
Why it matters:
If your DSO is high, you're waiting too long to get paid, which can strain your cash flow. A low DSO means your collections process is working well.
How to get better:
What it is:
This tracks how long deduction claims, like shortages or compliance issues, remain unresolved.
Why it matters:
Unresolved deductions tie up revenue, and some retailers have tight windows to dispute claims. If you miss the deadline, that money is gone.
How to get better:
What it is:
This measures the percentage of deduction dollars you successfully recover.
Why it matters:
A high recovery rate means you’re recapturing lost revenue. A low rate often points to gaps in documentation or slow dispute handling.
How to get better:
What it is:
This shows how many of your customers pay their invoices on time.
Why it matters:
Good on-time payment rates mean stable cash flow. If your rate drops, it might be time to revisit your credit terms or how clearly you’re communicating them.
How to get better:
What it is:
This tracks how long it takes, on average, to fully resolve a dispute, from discovery to resolution.
Why it matters:
Long resolution times slow down your cash flow and eat up resources. The faster you can resolve, the quicker you can move on and collect your money.
How to get better:
Effective RPM ensures healthier cash flow, fewer write-offs, and more accurate forecasting.
Want to boost your receivable performance? Here are some tried-and-true strategies:
Even with the best intentions, many companies run into the same roadblocks:
Luckily, tech is here to help—and not just in a flashy, buzzwordy way. Real tools are solving real problems. Here’s how:
Technology takes you from reactive to strategic, allowing your team to focus on value, not busywork.
Managing receivables must not be stressful. iNymbus makes it easier by automating the time-consuming parts of the deduction and dispute process. Whether you're dealing with Amazon shortages or Walmart chargebacks, our platform connects directly with your systems and retailer portals to keep everything running smoothly.
Here’s how iNymbus supports better receivable performance:
With iNymbus, your team can focus on strategy and growth, not chasing paperwork or fighting retailer portals. We help you stay ahead of deductions and get paid faster, with less stress.
Managing receivables doesn’t have to feel like firefighting. With the right mix of process, strategy, and automation, you can take control of your cash flow, recover more revenue, and stop letting deductions slow you down.
Suppose deduction backlogs, manual processes, or slow recovery rates are hurting your business. In that case, it might be time to rethink your receivable performance approach, and let iNymbus help you turn things around.