* Is High or Low Best: Lower is Better
The Percentage of Invoices Received on Paper is an indicator of invoice submission quality, and its potential impact on productivity, error rates, costs, and overall work quality within the company's Accounts Payable (AP) Department. A high volume of invoices on paper may put increased workload on AP staff members - in most cases, these invoices must be manually keyed into the company's invoice processing system. Even in instances where paper invoices can be scanned and input into company systems using optical character recognition (OCR) technology, the completeness and accuracy of these entries may be subpar as compared to fully electronic processing formats, such as Electronic Data Interchange (EDI). If the company is unable to receive and process invoices electronically, data input accuracy and completeness must be diligently monitored and enforced by AP managers to keep invoicing and payment errors to a minimum.
The number invoices received (from company vendors/suppliers) received on paper by the Accounts Payable (AP) Department divided by the total number of invoices received (electronic, paper, PDF) by the AP Department over the same period of time, as a percentage.
Two values are used to calculate this KPI: (1) the number of invoices received on paper, and (2) the total number of invoices received by the Accounts Payable (AP) Department over the same period of time. Invoices received on paper are typically received through direct mail, or directly handed off to an AP Department employee. Invoices submitted in PDF format (via email, or similar) or electronically should not be included in the numerator for this calculation. Invoices submitted on paper, as a PDF or electronically (through an Electronic Data Interchange, or EDI, platform), with or without an accompanying purchase order, should all be included in the denominator for this calculation. Included invoices received from all company vendors/suppliers in this calculation.
(Number of Invoices Received on Paper / Total Number of Invoices Received) * 100
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