Accounts Payable (AP) Operations should be reporting on Key Performance Indicators (KPIs) to measure efficiency even if invoices are processed through a workflow system.  Reviewing the KPIs can help identify issues within the system or with data that is supplied to AP by other departments. Learn what should be reviewed on a routine basis, how to gather the information needed to perform the analysis, how to interpret the results to identify the root cause of any issues, and the steps to be taken to reverse negative KPI trends.  

KPIs are a great tool that should be in every AP Operations’ toolbox.  Time is needed to pull together the reports and details, but once a company identifies what to measure and the details needed to perform the research, reporting can be created within a workflow tool that can greatly reduce the time needed to perform the work. Additionally, the relatively small amount of time needed to perform the analysis will bring great benefits to the company should an issue be identified.  

KPIs to be used for AP operations using automation may need to be different from those used to measure performance in a “manual” operation since the tools are different. This course will address KPIs to be considered by companies using AP automation.  Here are a few examples of KPIs that will be covered:

• Percentage of duplicate invoice versus total received – reduce the number to control costs. 
• First Pass Yield of Purchase Order (PO) invoices matching to POs and receipts if applicable – would modifying settings improve the number?
• Percentage of invoices processed without AP intervention – let the system do the work.
• Aging of unprocessed invoices within the system by status – why the delays?
• Aging of invoices posted in the Enterprise Resource Planning (ERP) system but not yet paid – Is there a system error or other reason for non-payment?
• Paid on Time reporting – late payment of invoices could have adverse effects to Vendor and Customer relationships.

Hear about the benefits of each KPI as it is presented.