Which Key Performance Indicators Are Used by Best-in-Class AP Teams?

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As Management Consultant Peter Drucker said “What gets measured gets improved.” Benchmarks and key performance indicators (KPIs), enable organizations to streamline processes and maintain a strong competitive advantage. They not only inform your team on how to improve productivity and lower costs; they demonstrate how your team and processes are supporting your company’s strategic goals. To ensure the success of your Accounts Payable team, metrics should be designed to improve the speed, accuracy, and transparency of processes. Here are a few key performance indicators that best-in-class organizations are already measuring.

  • Cycle Time Metrics:
    • -Time from Invoice Receipt to Post
    • - Time to Approve Invoices
    • - Time to Handle Exceptions
  • Process Accuracy Metrics:
    • - Invoice Exceptions by Vendor
    • - Master Data Exceptions
    • - Price-Quantity Match Exceptions
  • Process Transparency Metrics:
    • - Invoices Received
    • - Blocked Invoices
    • - Invoices Waiting for Approval
  • Financial Impact:
    • - Total Invoice Processing Costs
    • - Total Spend by Vendor
    • - Total Captured Discounts
    • - Total Missed Discounts
The benefits of using metrics is clear, especially for global organizations with remote teams. As Jim Ferguson of IMS Health states "We can see how many invoices are being posted by each team member, which is a very strong tool to use when managing a remote team and outsourcing." Monitoring metrics continuously will ensure processes are maintainable, predictable and profitable, and that variances can then be identified and corrected in a timely manner. Over time, using metrics will help increase your understanding of where the business stands and where it can improve. Yet, despite the benefits of using metrics, many companies struggle because collecting the necessary data can be time consuming and cumbersome, particularly if their accounts payable processes are paper-based and manual. Digitized solutions such as Dolphin’s Process Tracking System for Accounts Payable solution are much better suited to establishing AP metrics. The solution digitizes the entire Accounts Payable process from initial invoice receipt to payment, so organizations can establish the metrics they need to track the process from start-to-finish. KPIs available with the Dolphin Accounts Payable solution include:
  • -User Productivity
  • -Work Performed by Date Range
  • -Exception Analysis
  • -Number of Exceptions per Day
  • -Invoices Processed per Day
  • -Invoices Processed Daily
  • -Volume of Invoices by Vendor
  • -Dollar Amount Invoice Analysis
  • -First Time Match Rate/Auto-Post Invoices
  • -Cycle Time: Exception Handling
  • -Cycle Time: Scan to Post
  • -Processing Time Analysis
  • -Days Payable
  • -Invoices for Accruals
  • -Discounts at Risk/Discounts Captured
  • -Current Status Analysis
  • -Invoice Source Analysis
  • -Spending Trend
  • -Vendor Business – All Vendors
  • -Vendor Spend Analysis
Want to find out more about valuable AP metrics that your organization can use? Contact Dolphin today or take a look at the following case study. ResourceImages IMS Health gains insight into best practices of a global, distributed accounts payable process, by enabling metrics to view the status of invoices throughout the entire process lifecycle.      

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Which Key Performance Indicators Are Used by Best-in-Class AP Teams?

reporting-icon

As Management Consultant Peter Drucker said “What gets measured gets improved.”

Benchmarks and key performance indicators (KPIs), enable organizations to streamline processes and maintain a strong competitive advantage. They not only inform your team on how to improve productivity and lower costs; they demonstrate how your team and processes are supporting your company’s strategic goals.

To ensure the success of your Accounts Payable team, metrics should be designed to improve the speed, accuracy, and transparency of processes. Here are a few key performance indicators that best-in-class organizations are already measuring.

  • Cycle Time Metrics:
    • -Time from Invoice Receipt to Post
    • – Time to Approve Invoices
    • – Time to Handle Exceptions
  • Process Accuracy Metrics:
    • – Invoice Exceptions by Vendor
    • – Master Data Exceptions
    • – Price-Quantity Match Exceptions
  • Process Transparency Metrics:
    • – Invoices Received
    • – Blocked Invoices
    • – Invoices Waiting for Approval
  • Financial Impact:
    • – Total Invoice Processing Costs
    • – Total Spend by Vendor
    • – Total Captured Discounts
    • – Total Missed Discounts

The benefits of using metrics is clear, especially for global organizations with remote teams. As Jim Ferguson of IMS Health states “We can see how many invoices are being posted by each team member, which is a very strong tool to use when managing a remote team and outsourcing.”

Monitoring metrics continuously will ensure processes are maintainable, predictable and profitable, and that variances can then be identified and corrected in a timely manner. Over time, using metrics will help increase your understanding of where the business stands and where it can improve.

Yet, despite the benefits of using metrics, many companies struggle because collecting the necessary data can be time consuming and cumbersome, particularly if their accounts payable processes are paper-based and manual.

Digitized solutions such as Dolphin’s Process Tracking System for Accounts Payable solution are much better suited to establishing AP metrics. The solution digitizes the entire Accounts Payable process from initial invoice receipt to payment, so organizations can establish the metrics they need to track the process from start-to-finish. KPIs available with the Dolphin Accounts Payable solution include:

  • -User Productivity
  • -Work Performed by Date Range
  • -Exception Analysis
  • -Number of Exceptions per Day
  • -Invoices Processed per Day
  • -Invoices Processed Daily
  • -Volume of Invoices by Vendor
  • -Dollar Amount Invoice Analysis
  • -First Time Match Rate/Auto-Post Invoices
  • -Cycle Time: Exception Handling
  • -Cycle Time: Scan to Post
  • -Processing Time Analysis
  • -Days Payable
  • -Invoices for Accruals
  • -Discounts at Risk/Discounts Captured
  • -Current Status Analysis
  • -Invoice Source Analysis
  • -Spending Trend
  • -Vendor Business – All Vendors
  • -Vendor Spend Analysis

Want to find out more about valuable AP metrics that your organization can use?

Contact Dolphin today or take a look at the following case study.

ResourceImages

IMS Health gains insight into best practices of a global, distributed accounts payable process, by enabling metrics to view the status of invoices throughout the entire process lifecycle.