Accounts Payable (AP) Operations should be reporting on Key Performance Indicators (KPIs) to measure efficiency even if invoices are processed through a workflow system.  Reviewing the KPIs can help identify issues within the system or with data that is supplied to AP by other departments. Learn what should be reviewed on a routine basis, how to gather the information needed to perform the analysis, how to interpret the results to identify the root cause of any issues, and the steps to be taken to reverse negative KPI trends.  

KPIs are a great tool that should be in every AP Operations’ toolbox.  Time is needed to pull together the reports and details, but once a company identifies what to measure and the details needed to perform the research, reporting can be created within a workflow tool that can greatly reduce 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 should an issue be identified.  

KPIs to be used for AP operations using automation may need to be different from those used to measure performance in a “manual” operation since the tools are different. This course will address KPIs to be considered by companies using AP automation.  Here are a few examples of KPIs that will be covered:

  • Percentage of duplicate invoice versus total received – reduce the number to control costs. 
  • First Pass Yield of Purchase Order (PO) invoices matching to POs and receipts if applicable – would modifying settings improve the number?
  • Percentage of invoices processed without AP intervention – let the system do the work.
  • Aging of unprocessed invoices within the system by status – why the delays?
  • Aging of invoices posted in the Enterprise Resource Planning (ERP) system but not yet paid – Is there a system error or other reason for non-payment?
  • Paid on Time reporting – late payment of invoices could have adverse effects to Vendor and Customer relationships.

 

Hear about the benefits of each KPI as it is presented. 

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: March 5, 2024
6 Reviews (31 ratings)

Reviews

1
Anonymous Author
The training was more of a sales pitch to convince the value of KPIs than actually going over what types of KPI are useful to companies when and how.

3
Member's Profile
Some of the questions on the final were not covered enough during the course.

5
Anonymous Author
Good course. Full of good reference information to be used in the future.

4
Anonymous Author
Good coverage and discussion of important KPIs to track and analyze.

4
Anonymous Author
good to have that information thank you for the class

5
Member's Profile
Good course. Provides good ideas for data analytics.

Prerequisites
Course Complexity: Intermediate

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 Syllabus
INTRODUCTION AND OVERVIEW
  Introduction to KPIs2:21
  Why Track KPIs4:19
  KPIs – What to Measure5:11
  Why Keep KPIs for AP2:28
  Documenting KPI Procedures and Processes1:14
  KPIs for AP3:03
  Measure System Productivity4:14
  Other AP KPIs to Consider3:47
  Example of a Payment KPI1:58
  Examples of PO Related KPIs3:31
  Benefits, Challenges and Conclusion4:57
CONTINUOUS PLAY
  KPIs and Metrics for Accounts Payable Operations Using Workflow Systems 37:06
SUPPORTING MATERIALS
  Slides: KPIs and Metrics for Accounts Payable Operations Using Workflow SystemsPDF
  KPIs and Metrics for Accounts Payable Operations Using Workflow Systems Glossary/IndexPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam