Vendor Payment Processing Cycle Time

Benchmarking Report

Vendor Payment Processing Cycle Time

This PDF report includes benchmarking data (in a visual, chart-based format), an comprehensive KPI definition, characteristics of high performers and technical details on measuring Vendor Payment Processing Cycle Time. Purchase and download this easy-to-understand, presentation-ready report immediately to compare performance levels, set attainable performance targets, and push towards best-in-class performance for this KPI.


What is Vendor Payment Processing Cycle Time?

The number of business days required to process an invoice from a company supplier, or vendor, from when the invoice is received by the Accounts Payable Department until it is approved and scheduled for payment.

Why should Vendor Payment Processing Cycle Time be measured?

Vendor Payment Processing Cycle Time measures the time required to process (intake, review, matching, approval/denial and payment setup) a single vendor invoice within the Accounts Payable (AP) department. A low value for this KPI is desired, as extended payment cycle times may impact relationships with vendors/suppliers, contribute to invoice backlog volumes, and reduce overall productivity and work quality within the AP function. AP Departments that achieve high performance for this KPI typically have a few traits in common: standard processes and formats for invoice submission, methods in place to reduce paper invoice submissions (and related manual entry, etc.), vendor incentives in place related to the use of purchase orders (POs) and a high emphasis on internal performance management and reporting to constantly monitor employee/team performance.


Download a Sample Vendor Payment Processing Cycle Time

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