Invoices Processed per Employee

Metric Details & Benchmarking Report Download

KPI Benchmarks : Invoices Processed per Employee

  • Benchmark Range
  • Benchmark Average
  • Benchmark Sample Size (n) 64

* Is High or Low Best: Higher is Better

Invoices Processed per Employee

KPI Details

Invoices Processed per Accounts Payable Employee measures the efficiency with which Accounts Payable (AP) employees process and pay (or schedule to pay) invoices that are owed to company vendors, or creditors. A relatively low value for this KPI is typically related to a few common factors: highly manual accounts payable processes (invoice matching, reconciliation, etc.), many invoices received on paper or not in good order and/or a lack of discipline and training within the Accounts Payable staff. Each of these factors lead to increased error rates, longer cycle times, higher unit costs (i.e., cost per invoice), and unnecessary disputes with vendors or creditors.

KPI Definition

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 employees responsible for invoice processing.

KPI Best Practices

  • Inbound data quality standards enforced with company vendors
  • Purchase orders required for any invoice over a certain threshold
  • Payments are electronically matched and dispersed where possible

KPI Calculation Instructions Invoices Processed per Employee?

Two values are used to calculate this KPI: (1) the number of invoices that are processed and paid to vendors (or denied, scheduled for payment, etc.) over a certain period of time, and (2) the average number of employees working for the Accounts Payable (AP) Department over the same period of time. To calculate the average number of Accounts Payable Employees, add the number of AP Employees at the beginning of the measurement period and the number of AP Employees at the end of the measurement period, and divide that number by 2. Only include invoices that have been fully processed (formally paid, denied, or scheduled to pay) vendors in this calculation. Do not include invoices that are being disputed in the numerator. Only include AP Employees whose job requirements include the processing and payment of invoices (i.e., do not include administrative assistants, managers that do not process invoices, etc.).

KPI Formula :

Number of Invoices Processed and Paid to Vendors / Average Number of AP Employees

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