Friday, August 28, 2020

Introduction to KPIs

KPI stands for Key Performance Indicators. KPIs indicate a company's success level in it's various processes by converting them into quantifiable measurements. For example, one of the ways you can track the efficiency of your operations division is by closely monitoring its overdue deliveries, you can achieve this by setting a KPI to track the number of overdue deliveries for a fixed interval.  KPIs allow you to easily and quickly check progress towards achieving your company’s strategic goals and objectives. The ability to create your own KPIs gives you the option to design financial and operational KPIs that reflect your own unique business needs. The different types of KPIs available in SAP Business One are: - 

  • Working Capital Management 

  • Profitability Ratios 

  • Liquidity Ratios  

  • Debt Ratios 

  • Financial Statement KPIs

  • Daily Operational Indexes 

  • Sales Side KPIs

  • Purchasing KPIs

  • CRM KPIs

SAP provides a large number of prebuilt KPIs but you can also design your own. You can base your KPIs on Analytic Views, Calculation Views, User Defined Queries. In the upcoming blogs I will be explaining all the different types of KPIs in detail. 


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