The accounts payable function – is the most susceptible area of accounting in any firm. Find out the metrics you should track and how to enhance them. They're easy to track using AP Automation.

1. 5 Key Metrics
To Empower Your
Accounts Payable Organization

2. Key Metrics in AP Success
1. Cost per Invoice
2. Invoice Processing Speed
3. Productivity per Team Member
4. Variance Analysis- Correction Rate
5. PO Matching Speed

3. Challenges
● Maintaining manual records
● Long invoice approval cycle
● Time consuming Invoice validation
● Discrepancy to match invoice data
● Missing purchase orders
● Managing vendor invoices

4. #1 Cost per Invoice
● A recent survey reports companies with no or little automation spend $10 or more per
invoice processing.
● The average organizations spend $5.83 to process.
● The performance will differ on the costs included in the calculation:
- Number of invoices processed
- Percentage of purchase-order-based invoices
BENEFITS OF AP AUTOMATION:
1. Removes manual work
2. Speed up the AP process
3. Take away IT complexities drive the cost metrics down in the long run

5. #2 Invoice Processing Speed
● This metric for AP tracks the total time it takes for an invoice to be received, processed,
finalized, and made ready for payment in the financial system.
BENEFITS OF AP AUTOMATION:
1. AP automation solution manages the entire process:
- From receipt and data capture to workflow
- Posting in the ERP
2. If parts of the process happen outside of the AP solution this might get tricky but still
achievable and an excellent way to measure the overall AP process efficiency.

6. #3 Productivity per Team Member
● Industry standard in a manual AP averages: 750-800 invoices
● Urgent priorities, daily hassles, unhappy suppliers/vendors, audits, invoice and payment
errors, long approval processes
BENEFITS OF AP AUTOMATION
Here are ways to get your hourly AP team to embrace productivity:
1. Centralize your Accounts Payable
2. Leverage invoice cycle visibility for better outcomes
3. Integrate AP automation software
4. Offer support and set realistic goals and expectations

7. #4 Variance Analysis-Correction Rate
There are several problems with variance analysis that keep many
companies from using it. They are as follows:
● Time delay
● Variance source information
● Standard setting
The results of various periods are shown side by side in this method, making it easy to spot trends
BENEFITS OF AP AUTOMATION:
1. The AP automation documents all payments accurately and efficiently
2. Provides the necessary information for timely variance analysis

8. #5 PO Matching Speed
● Performing PO matching manually can be quite taxing on the finance team
● It is inefficient, time-consuming, and prone to human error
BENEFITS OF AP AUTOMATION
1. Avoids late payments
2. Saves time
3. Automatic distribution to the relevant approver based on the organization’s approval
hierarchy
4. Automatic approval by matching recurring invoices (such as a lease) to the payment
plan in a contract
5. 100% visibility into procurement and tracking of Invoices via workflows

9. Aavenir Solution
Implementation of Invoiceflow Management on ServiceNow and here is what they achieved:
Reduced invoice processing time
Reinforced unified platform strategy
PO and Non-PO Invoice Approval Workflow
Tracks and measure the performance of the invoice process

10. Free Demo Session
Get a live demo of Aavenir Source to Pay solutions to know how Aavenir can address
your enterprise's unique business challenges and goals.
We provide live demonstration for following Aavenir S2P solutions:
● Invoiceflow - Account Payable Automation on ServiceNow
Success story of T.D. Williamson: https://bit.ly/3zQ0xL1
Success story of PBM: https://bit.ly/3zx8jJI
Visit: https://aavenir.com/demo/

11. Get Free Resources
Steps to transform
Accounts
Payable
Free Download
Vendor Risk
Management
Test Drive
Invoiceflow
PO v/s Non- PO
Invoice
Processing
Transforming
source-to-pay
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12. Delivering Future of Work
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