May 24, 2015
Invoice Approval Visibility
Monitoring Key Performance Indicators
Providing timely insight to Management
Calculating Cost per Invoice
The obvious costs:• Salaries• Benefits• Computer Equipment
Not so obvious costs:• Photocopies/faxing/toner• Scanning • Office Supplies• Telephone• Overnight Shipping• Real Estate Occupied• Audit Recovery Fees
APPROVED INVOICE/AP REVIEW
Historical Invoices
FIRST LEVEL APPROVER
HIGHER LEVEL APPROVER
Metric Best in Class Laggard
Average Cost Per Invoice $3.34 $16.67
Days to Process 4.1 days 16.3 days
# of Invoices per FTE 5,000 to 8,000 invoices 1,000 invoices
Straight Thru Processing Rate Greater than 70% Less than 12%
Days Payable Outstanding 21 days 34 days
Reporting Capability Checklist
Ensure your reporting tools bring value and are equipped with the following:
• Graphical interface to monitor relevant KPIs• Access to real-time data• Drill-down capability• Export capability (Excel, Access, etc)• Management level access• Ad-hoc reporting