Booking, Billings, Backlog Business Area Model

BBB is an acronym for "Bookings, Billings, Backlog". It usually includes two additional components "Cancellations and Returns", which is how it is implemented in the ADRM BBB Business Area Model.

BBB is important because it takes the pulse of the business as of a period of time (or a specific date if the information can be acquired daily). It allows the organization to plan for sales and enables it to react to real-world transaction-based information.

ALLOCATIONS are the planned inventories to meet an anticipated demand.

BOOKINGS are field sales reports of anticipated sales that must be planned for in terms of inventory and also provides management with anticipated sales revenues.

BILLINGS represent actual sales that have been made and have been invoiced to customers.

BACKLOG represents products sold to customers that cannot be invoiced because the product is not available in inventory or for delivery to the customer.

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.

Each of these events has a different significance to management in different functional areas of the organization and represent important metrics to the business organization.

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