PROACTIS Blog

25 Metrics for Accounts Payable

Charlotte Sutton
Charlotte Sutton,
PROACTIS
Metrics are critical to understanding Account Payables current state and assessing the impact of changes that are made to achieve these goals.
The top goals of Accounts Payable departments should largely align with the top goals and pressures of senior management:
  • Reduce costs
  • Improve efficiency & timeliness
  • Improve accuracy, control or policy compliance
  • Improve cash flow, etc. 
The bad news according to surveys is that a large percentage of Accounts Payable Departments do not have any metrics in place.

Below are some common metrics you can use to analyse the efficiency of your invoice management process - from data capture and review, invoice processing and matching to transfer for payment and ensuring continuous improvement:
  1. The total number of invoices per million of revenue
  2. The total number of invoice line items processed per Accounts Payable FTE
  3. The average length of time to approve an invoice
  4. The percentage of invoices whose information has been corrected
  5. The total number of invoices received from each supplier
  6. The average invoice value per supplier
  7. The percentage of invoices received from each supplier that is electronic
  8. The total number of transactions received from preferred suppliers
  9. The average number of line items per invoice received by supplier
  10. The total number of invoices linked to a purchase order or to a recurring invoice
  11. The total number of invoices covered by purchase order and goods receipt
  12. The total number of invoices received and matched by purchase order or contract
  13. The number of invoices that have not been processed or transferred to an accounting system
  14. The percentage of invoices which an Accounts Payable clerk has sent for approval or review against the total number of invoices
  15. The total value of invoices that are awaiting approval
  16. The total number of invoices which have been run through an OCR tool and on which no data is required to be added manually
  17. The average number of days that have passed between capturing invoice data and sending the invoice for approval
  18. The average number of days that have passed between capturing invoice data and releasing invoice for payment
  19. The total number of invoices that the system processes by automated workflow
  20. The percentage of processed electronic invoices on which no data has been added or corrected manually
  21. The percentage of the total number of supplier inquiries against total number of invoices received
  22. The percentage of electronic invoices that are linked to a catalogue order
  23. The total number of invoices that have been returned or cancelled
  24. The total number of invoices that have been transferred for payment after the due date
  25. The total amount of lost-early payment discounts due to late payments
If you are looking to measure, monitor and improve your invoice automation process, contact PROACTIS today to learn how our software can help you control the entire Accounts Payable process - monitor all invoice transactions, remove bottlenecks and resolve any backlogs.