BBB is an acronym for "Bookings, Billings, Backlog". BBB usually also includes two additional components "Cancellations and Returns", which is how it is implemented in the ADRM Software BBB Business Area Model.
BOOKINGS are field sales reports of anticipated sales that must be planned for and also provides management with anticipated.
Bookings information enables you to count new orders in the current period, identify which products are performing best and poorest and monitor trends.
BILLINGS represent actual sales that have been made and have been invoiced to customers. Billings usually translate directly into revenue.
BACKLOG represents products sold to customers that cannot be invoiced because the product is not available in inventory or for delivery to the customer.
Backlog data enables you to identify problems in terms of orders that have been received but not shipped.
Changes in backlog are the first indication that the business is changing in some way and require immediate analysis and action.
If the backlog is rising then the business is growing. If the backlog is falling there are market, sales, manufacturing or supply issues causing the business to slow that need to be identified and addressed.
CANCELLATIONS represent the cancellation of an order after it has been booked and billed. This represents the most serious condition of all to a business in that real revenue has been lost after the sales work had been done.
RETURNS represents the return of product by the customer after it has been billed and delivered. The reason for returns is of critical importance to the business.
BBB data is used to form an accurate picture of the direction in which the business is heading.
How do current period BBB compare against past periods?
Is backlog sufficient to meet sales and revenue targets?
Are customer orders meeting promised delivery dates?
BBB data can be difficult to integrate since it may come from one or more sources, formats and may contain nonintegrated data.
BBB reinforces the need for an overall data architecture in which products, product hierarchies, channels, orders etc. are consistently defined and implemented.
BBB is related to every core part of the business - sales, marketing, inventory, financial reporting and profitability.
BILLINGS represent actual sales that have been made and have been invoiced to customers. Billings usually translate directly into revenue. BACKLOG represents products sold to customers that cannot be invoiced because the product is not available in inventory or for delivery to the customer.
Bookings refer to the value of the deals agreed upon by a company and its customers. Typically, bookings represent work that the company will undertake in the future, so it's a measure of future income. Similarly, a company's backlog represents orders it has received but has not yet executed.
Billings are what you invoice your customers. It's the money you collect from your customer, as opposed to the formal commitment when the contract was signed. This metric is closer to cash and cash flow than bookings (although not identical, as cash lags depending on payment terms and collections).
In the digital age we live in now, there are two ways to book: directly and indirectly. In this article, we'll talk about how these two types of reservations are different, as well as their pros and cons.
Revenue earned is where you make your profit on your projects. Billing is for cash flow and is necessary to keep your company working. As a Project Manager, you need to understand the difference between revenue and billing and keep track of both in the management of your projects.
The main difference between bookings and ARR is their focus and timing. Bookings focus on the total value of orders or contracts signed during a period, while ARR focuses on the recurring revenue generated from those contracts over a year.
Billing refers to the overall process of charging for services, whereas invoicing is specifically requesting payment for services provided. Integrating billing and invoicing systems improves data management and operational efficiency.
Backlog represents your entire unfulfilled order history, including all unsatisfied customer orders.Backorders are customer's orders of out-of-stock items. There can be backorders in your backlog, but stores can choose not to allow backorders on their website.
Contract Backlog = Contract value – the ITD revenue. The Contract Backlog is the funded and unfunded contract value that has not been spent. Usually, this is a trended measure because it can indicate future revenue streams. It can also show perspective on how the backlog changed over the recent past.
A backlog refers to a buildup of work that must be completed. The term "backlog" has several uses in accounting and finance. It may vary according to the circ*mstance. For instance, a company's sales orders waiting to be fulfilled or a stack of financial paperwork, such as loan applications, that needs to be processed.
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