AP Performance Summary
Cost per Invoice
$4.25 -$0.75
Target: $5.00
Processing Time
3.2 -0.8
Target: ≤4 days
Discounts Captured
$42K +$7K
Target: $35K
Error Rate
0.8% -0.1%
Target: ≤0.5%
AP Core Metrics
| Metric | Measurement | Target | Actual | Owner | Status |
|---|---|---|---|---|---|
|
Cost per Invoice
Total AP cost ÷ invoices processed
|
USD | ≤ $5.00 | $4.25 | AP Manager | Green |
|
Invoice Processing Time
Avg. days from receipt to payment
|
Days | ≤ 4 | 3.2 | Processing Lead | Green |
|
Discounts Captured
Value of early payment discounts
|
USD | ≥ $35K | $42K | AP Manager | Green |
|
Payment Error Rate
% of payments requiring correction
|
Percentage | ≤ 0.5% | 0.8% | QC Manager | Yellow |
|
E-Invoice Adoption
% of invoices received electronically
|
Percentage | ≥ 75% | 82% | AP Supervisor | Green |
|
Vendor Satisfaction
Score from vendor surveys
|
Score (1-10) | ≥ 8.5 | 8.7 | Vendor Manager | Green |
|
Duplicate Payments
Value of duplicate payments
|
USD | ≤ $1K | $850 | AP Analyst | Green |
|
Compliance Rate
% of payments meeting policy
|
Percentage | ≥ 98% | 98.5% | Compliance Officer | Green |
AP & Bill Passing Action Plan
! Reduce Payment Errors (Current: 0.8% | Target: 0.5%)
- Implement automated 3-way matching system for all invoices
- Conduct training on new invoice verification process
- Establish weekly error review meetings to identify patterns
- Create vendor master data validation checklist
✓ Increase Discount Capture
- Identify vendors offering early payment discounts
- Implement automated discount tracking system
- Prioritize invoices with expiring discounts
→ Enhance Vendor Experience
- Launch vendor self-service portal for invoice status
- Implement automated payment status notifications
- Establish vendor support hotline
EOS Implementation Guidelines
Weekly Cadence
Update every Tuesday at 9 AM. Review in AP Team Meeting.
Accountability
Each metric has a clear owner responsible for reporting and improvement.
Targets
Set quarterly targets aligned with company Rocks (e.g., "Reduce cost per invoice to $3.50").
Visual Management
Display AP metrics on team dashboard visible to all members.
AP Focus Areas
Cost Efficiency
Reducing processing costs per invoice
Process Speed
Improving invoice processing time
Discount Optimization
Maximizing early payment discounts
Accuracy & Compliance
Ensuring error-free payments
AP & Bill Passing Highlights
Cost Reduction
Cost per invoice reduced by 15% through automation and process improvements.
Process Efficiency
Processing time reduced to 3.2 days through workflow automation and staff training.
Error Reduction
Payment error rate at 0.8%, slightly above target. New verification system being implemented.
AP & Bill Passing Priorities
Error Reduction
Implement 3-way matching system to reduce payment errors
Automation Expansion
Roll out next phase of invoice processing automation
Vendor Experience
Launch vendor self-service portal and support hotline