How to measure efficiency
in the non-PO invoice process?

A non-PO invoice does not have an associated purchase order and hence needs to go through an invoice approval process within the buying organization with some level of manual review. If invoice details are scarce, coding and distributing the invoice to the appropriate authorizer can be a tricky and lengthy operation.

An accounts payable automation solution can automate and accelerate every step of this process making life much easier for the AP team and the approvers throughout the organization. Learn more about each step of the non-PO invoice process by downloading the full report.

The KPIs for non-PO invoice processing

Efficiency in the non-PO invoice process is all about driving speed and automation by removing all manual touchpoints.

Touchless capture rate

Medius Benchmarks

55 %
AVERAGE
90 %

BEST-IN-CLASS

About this KPI

Invoice data capture is the process of interpreting, extracting, and validating the data of a supplier invoice. An efficient invoice data capture process is one that is fast and accurate, hence one that does not require a user to key in, control or correct data. This is where a digital, intelligent data capture tool comes in handy.

This KPI measures the percentage of invoices where invoice data is extracted and captured automatically by a system without any user interaction whatsoever.

Success story

Global spare parts specialist TVH has appointed dedicated AP resources to actively identify suppliers where touchless capture can be turned on, allowing the AP system to automatically extract the invoice data without human intervention. The Medius solution makes this process easy by indicating when all invoice fields have been captured correctly and providing a confidence percentage level for automated capture.

Touchless capture rate

75.7%

 
 
Usually we only need to run three invoices from a new supplier for the system to learn the data format and indicate a high enough confidence level that we can turn on automatic touchless capture.

Renate Mortier, Finance & Support Manager, TVH

Automatic routing rate

Medius Benchmarks

60 %
AVERAGE
90 %

BEST-IN-CLASS

About this KPI

When a non-PO invoice has been received it needs to be forwarded to the appropriate approver within the organization – usually the person who bought the goods or a cost center owner. With an AP automation solution the routing can be automated based on a pre-configured approval hierarchy.

This KPI measures the percentage of non-PO invoices that are automatically routed to the correct approver within the organization without any user intervention.

Success story

The AP team at Duni, a global manufacturer of innovative table top concepts, works proactively to set up business rules and create system logic in order to increase automation of the AP process.

Automatic routing rate

97.6%

 

The flexible configuration in Medius AP Automation allows us to optimize settings and drive higher automation rates. And since we get access to process KPIs within the tool we can easily measure and track the results of our optimization efforts.

Łukasz Gauza, AP Team Leader, Duni EFF

Average approval time

Medius Benchmarks

10 DAYS
AVERAGE
5 DAYS

BEST-IN-CLASS

About this KPI

The approval step is where some level of user interaction is needed. You can ensure a fast and smooth approval process by providing a user friendly and mobile optimized solution for invoice approvals.

This KPI measures the average time that a non-PO invoice is in the ‘Approve’ step where a user, typically the person who bought the product or service, and/or the budget owner, reviews the invoice content and coding to ensure all details are correct.

Success story

Rejmes Bil is a Swedish Volvo car dealer with a strong focus on customer satisfaction, process efficiency and continuous improvement in all parts of the company.

Average Approval Time

1.4 DAYS

 
 
What gets measured, gets done! We track handling time per user and present the results to our management team so that everyone understands how a lengthy process affects the entire organization. Thanks to Medius AP Automation, there is no longer any excuse for late approvals.

Niklas Johansson, CFO, Rejmes Personvagnar AB

Total invoice processing cycle time

Medius Benchmarks

10 DAYS
AVERAGE
5 DAYS

BEST-IN-CLASS

About this KPI

A fast invoice process will save time and free up internal resources not only within the AP team but throughout the organization. By leveraging smart automation and convenient tools for digital approvals you can speed up the process and ensure suppliers are paid on time, every time.

This KPI measures the number of days it takes from when a non-PO invoice is entered in the AP system for data capture until it is finally approved and sent to the ERP system ready for payment.

Success story

Reily Foods Company replaced a manual invoice process using a legacy document management system and spreadsheets with Medius AP Automation to accelerate invoice processing throughout their North American operations.

Total invoice processing cycle time

3.3 DAYS

 
 
We have nearly eliminated all manual work, allowing the AP team members to spend their time on more strategic, value-driven tasks, including tracking KPIs and developing continuous improvement policies and procedures.

Paul Fournet, Accounts Payable Supervisor, Reily Foods

Access your copy of the report

Regardless of the maturity level of your current accounts payable process, this report is an excellent tool to help you get started – or accelerate – the improvement efforts needed to set you on track for those best-in-class performance levels. Get your copy today!