“A KPI should be reported within a context or else the meaning is lost.”
Several KPI’s fall under this category where the value or impact is measured in monetary value. Similar to Volumes, these KPI types are reported along with currency, unless a company executes all business transactions in a single currency.
Any KPI that denotes financial values should be associated with the right currency in order to give the complete picture (e.g. $100,000 or Rs. 54,230.44 or €1,200.00). Symbol or currency codes i.e $ vs USD, can be used depending on user preferences.
It is extremely important to have a single and consistent currency across all reports. All BI implementations for multi national organizations have currency conversion logic built into the reporting layer.
Examples of Amount based KPI’s are
- Sales Revenue: Amount realized after selling a product
- Stock Value in Hand: Monetary equivalent of the products available in different locations.
- Vendor Payable: Total amount that is due for payment in near future.
- Cash in Hand: Amount available as cash or bank account