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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: August 8, 2018

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 .
Course Syllabus
INTRODUCTION AND OVERVIEW
  2:22Introduction to KPIs
  4:20Why Track KPIs
  5:11KPIs – What to Measure
  2:28Why Keep KPIs for AP
  1:15Documenting KPI Procedures and Processes
  3:03KPIs for AP
  4:14Measure System Productivity
  3:47Other AP KPIs to Consider
  1:59Example of a Payment KPI
  3:31Examples of PO Related KPIs
  4:57Benefits, Challenges and Conclusion
CONTINUOUS PLAY
  37:06KPIs and Metrics for Accounts Payable Operations Using Workflow Systems
SUPPORTING MATERIALS
  PDFSlides: KPIs and Metrics for Accounts Payable Operations Using Workflow Systems
  PDFKPIs and Metrics for Accounts Payable Operations Using Workflow Systems Glossary/Index
REVIEW AND TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM