KPI Benchmarks : Automatic Cash Application Rate
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KPI Details : Automatic Cash Application Rate
Automatic Cash Application Rate measures the company’s ability to automatically match payments with their corresponding invoices. A relatively low value for this metric can be indicative of highly manual (i.e., error prone) matching processes, poor payment and invoice data quality and data governance policies and sub-par Accounts Payable (AP) Department employee training and performance. Each of these factors can lead to prolonged invoice processing cycle times which increases vendor disatisfaction and can potentially reduce the likelihood of future discounts, preferred deals, or even continued business with the vendor.
KPI Best Practices : Automatic Cash Application Rate
KPI Calculation Instructions Automatic Cash Application Rate?
KPI Formula :
Invoices Processed per Employee
The total number of invoices processed (i.e., received, input and paid/pended/denied, or scheduled for payment) over a certain period of time divided by the total number of Accounts Payable...
KPI Type : Productivity
Formula : Number of Invoices Processed and Paid to Vendors / Average Number of AP Employees
KPI Benchmark Range : 389 - 2,300
Accounts Payable (End-to-End)
This workflow template illustrates the reception, processing and payment of all incoming vendor/supplier invoices, from initial arrival to final payment. Purchase and download this template...
Type : Workflow Template
Process Participants : Vendors/Suppliers, Purchasers, Accounts Payable Staff, Fixed Assets Accounting Staff
Cost per Invoice
The total amount of expense incurred by the Accounts Payable (AP) Department divided by the total number of invoices processed by the AP Department over the same period of time. Total AP Dep...
KPI Type : Cost
Formula : Total AP Department Expense / Total Number of Invoices Processed
KPI Benchmark Range : $1.99-$12.49