KPI Benchmarks : T&E Payment Error Rate
- Benchmark Range
- Benchmark Average
- Benchmark Sample Size (n) 20
* Is High or Low Best: Lower is Better
T&E Payment Error Rate
T&E Payment Error Rate measures the percentage of travel and entertainment (T&E) payments made to employees that must be reversed, or re-issued to correct an error with the initial payment. A high rate of inaccurate payments can be traced to some common root causes: overcomplicated employee voucher templates or submission methods, unclear T&E expense policies and procedures, and a lack of attention to detail among T&E expense processing employees are typically the main culprits. Inaccurate payments should be monitored to identify common issues and deal with repeat offenders (i.e., employees who consistently process payments with errors), as these inaccuracies negatively impact service levels, employee productivity and costs within internal expense management processes.
The number of travel and entertainment (T&E) reimbursement payments that contain an error (not paid, incorrect amount, applied to wrong employee, not processed on-time, etc.) divided by the total number of T&E reimbursement payments processed over the same period of time, as a percentage.
KPI Best Practices
- Train employees on proper way to submit/fill-out expense vouchers
- Enforce the use of purchasing cards when applicable
- Use pre-approvals for employee purchases to minimize errors and disputes
KPI Calculation Instructions T&E Payment Error Rate?
Two numbers are used to calculate this KPI: (1) the number of travel and entertainment (T&E) reimbursement payments processed containing one or more error(s), and (2) the total number of T&E reimbursement payments processed over the same period of time. Common T&E payment errors include incorrect payment amount (over/under-payment), payments applied to the wrong account, and payments not processed on-time. Payments that should have been processed, but were not completed due to an internal oversight or process-related issue should also be counted in the numerator for this calculation. A reimbursement payment is simply counted as any instance where an employee T&E report was processed and a reimbursement payment was made to compensate the employee for business-related expenses.
KPI Formula :
(Number of T&E Expense Payments Containing an Error / Total Number of T&E Expense Payments Processed) * 100