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: August 14, 2023

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
12 Reviews (49 ratings)

Reviews

3
Member's Profile
This course was Okay. I was kind of frustrated with the final exam. It didn't really have good questions. I noticed a few spelling errors throughout the course as well. It seems like it was kind of thrown together.
3
Member's Profile
A quick discussion of AP KPIs. Much of the presentation focuses on generic considerations and tips (e.g. work with IT). I was hoping for more in depth kpi calcs and analysis.
5
Anonymous Author
This is a good tool to improve AP processes and performance in any company, I already did a list of KPIs that i need to collect in order to imporve my performance.
4
Anonymous Author
this was good information, my team doesn't process invoices, so I will use the basis of this to apply it to my teams work.
4
Anonymous Author
Anne presented a well thought out lecture, especially useful for large Accounts payable departments
5
Member's Profile
I liked the concept of KPI’s for the team, I will need to incorporate this into our process.
5
Anonymous Author
Awesome curse, very useful information to better the overall production of the team.
5
Member's Profile
Helpful information included in this course. Useful to use as reference for future.
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.
4
Anonymous Author
Useful tips and ideas to begin tracking data points for KPI research.
4
Anonymous Author
Comprehensive listing of the KPIs to focus on and prioritize.
show all reviews
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 .
Instructor for this course
  Course Overview CPE
Course Syllabus
INTRODUCTION AND OVERVIEW
  Introduction to KPIs5:50
  KPIs – What to Measure4:05
  KPIs – Why Measure2:35
  KPIs – AP Productivity Reporting7:58
  KPI’s – AP Productivity Reporting Continued2:07
  KPIs – Purchasing Activity3:02
  KPIs – Actions, Benefits and Challenges3:43
  Conclusion of KPIs1:55
CONTINUOUS PLAY
  KPIs and metrics for Accounts Payable Manual Processes 31:16
Supporting Materials
  Slides: KPIs and metrics for Accounts Payable Manual ProcessesPDF
  KPIs and metrics for Accounts Payable Manual Processes Glossary/IndexPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam