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Accounts Payable (AP) should be reporting on Key Performance Indicators (KPIs) to measure the efficiency of their processes.  KPIs can also determine issues within other departments that may impact Accounts Payable and Vendors.  Learn which key processes should be scrutinized, how to gather information to perform the analysis, how to interpret the results to identify the root cause of any issues, and how to identify the steps to be taken to reverse the trend of each KPI.  

KPIs are a great tool that should be in every AP Operations’ toolbox.  Time is needed to pull together the KPI reports but once a company identifies what to measure and the details needed to perform the research, reporting can be created within the enterprise resource planning (ERP) system, or other accounting system, greatly reducing 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 as a whole. You will learn about the benefits of each KPI as it is presented. 

In this course, “manual” processing will be covered.  Here are a few examples of KPIs that will be covered:

  • Volumes of invoices received by Vendor per Month – used to identify fluctuations that may impact Vendor Relationships.
  • Invoices volumes processed by each AP team member – to measure each person’s productivity month over month.
  • Paid on Time reporting – late payment of invoices could have adverse effects to Vendor and Customer relationships.
  • Prompt Payment Discounts taken compared to discounts available – what is causing lost discounts?

KPIs for operations using AP Automation Tools can be quite different and will be covered in a separate program.   

Learning Objectives

  • Discover Key Performance Indicators (KPIs) for use in Accounts Payable (AP).
  • Explore the benefits of tracking KPIs for AP processes.
  • Identify the details needed to measure KPIs
  • Recognize when corrective actions need to be taken.
Last updated/reviewed: October 22, 2018

Included In Certifications

This course is included in the following Certification Programs:

16 CoursesAccounts Payable Management Certification

  1. Accounts Payable – Learn the Terminology
  2. A Deep Dive into the Responsibilities of Accounts Payable Operations
  3. The Vendor Master – Creating A Solid Foundation for Accounts Payable Processing
  4. The Basics of 1099's
  5. Prioritizing Accounts Payable Workload – Divide and Conquer
  6. Strengthening Vendor Relationships - Steps That Can Be Taken by Accounts Payable
  7. The Benefits of Reconciling Purchase Order Goods Receipts Not Yet Invoiced
  8. Reconciling Aged Open Payables and Outstanding Checks
  9. Benefits of An Accounts Payable Recovery Audit
  10. No PO, No Pay – Can It Work for Your Organization?
  11. What to Consider in an Accounts Payable Workflow Solution
  12. Creating an Accounts Payable Documentation Management Policy
  13. Communicating the Role of Accounts Payable to Others
  14. Justifying and Presenting the Needs of Accounts Payable Operations
  15. The Basics of Project Management for Accounts Payable
  16. KPIs and Metrics for Accounts Payable Manual Processes

2 Reviews (6 ratings)Reviews

4
Anonymous Author
The supplemental glossary was helpful in understanding the concepts of the course
4
Member's Profile
The course was very informative. Gave great suggestions for KPIs.

Prerequisites

Course Complexity: Advanced

No advanced preparation or prerequisites are required for this course.

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
INTRODUCTION AND OVERVIEW
  5:50Introduction to KPIs
  4:06KPIs – What to Measure
  2:35KPIs – Why Measure
  7:58KPIs – AP Productivity Reporting
  2:07KPI’s – AP Productivity Reporting Continued
  3:03KPIs – Purchasing Activity
  3:43KPIs – Actions, Benefits and Challenges
  1:55Conclusion of KPIs
CONTINUOUS PLAY
  31:17KPIs and metrics for Accounts Payable Manual Processes
Supporting Materials
  PDFSlides: KPIs and metrics for Accounts Payable Manual Processes
  PDFKPIs and metrics for Accounts Payable Manual Processes Glossary/Index
REVIEW AND TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM