Vendor Payment Error Rate
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 Error Rate. 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 Error Rate?
The number of outgoing payments processed by the Accounts Payable Department that contained an error (e.g., wrong address, incorrect amount, duplicate payment, etc.) divided by the total number of transactions initiated over a certain period of time, as a percentage.
Why should Vendor Payment Error Rate be measured?
Vendor Payment Error Rate measures the diligence of the Accounts Payable Department in issuing and paying vendor invoices (i.e., money owed by the company to creditors/vendors). Errors may include overpayments, underpayments, payments made to the wrong entity, etc. Excessive invoicing errors may be indicative of a lack of controls within the Procurement and/or AP functions (e.g., lack of invoicing standards, lack of accompanying purchase orders, vendor data quality not enforced, outdated vendor data, etc.), and lead to potential vendor disputes and/or impact the organization's ability to meet its short-term financial obligations. Highly manual or paper-based invoicing processes may also adversely impact the amount of errors produced by AP staff.
Download a Sample Vendor Payment Error Rate
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