How to measure efficiency
in the PO invoice process?
A PO invoice is in fact pre-approved since the purchase, supplier, and amount was authorized as part of the purchase order process. Traditionally, the PO invoice process flow has required many manual tasks as invoice data is often compared and matched to one or several purchase orders and purchase order lines.
By leveraging intelligent technology AP teams can accelerate and automate this matching task and achieve a fully touchless process without any human interaction whatsoever.
Learn more about each step of the PO invoice process by downloading the full report.
The KPIs for PO invoice processing
Efficiency in the PO invoice process is all about driving speed and automation by removing all manual touchpoints possible.
Touchless capture rate
Medius Benchmarks
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
69.1%
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
Touchless processing rate
Medius Benchmarks
BEST-IN-CLASS 
About this KPI
When a PO invoice enters the accounts payable workflow it needs to be connected to the right purchase order(s), then each invoice row, item, and cost will be matched to ensure invoice data is accurate. With a myriad of matching scenarios, you’ll need an intelligent AP tool that can automate this task and remove the tedious, time-consuming manual tasks this may involve.
This KPI measures the percentage of PO invoices that are automatically processed, matched to supporting data, and approved for payment by the AP system without any user intervention whatsoever.
Success story
Medius’s capture capabilities allow Chadwell Supply to see just how many invoices are touchless, and how much time they are saving with the solution. Thanks to the Medius patent pending invoice capture tool, Chadwell Supply was able to determine they went from 20% touchless to 89.4% since investing in Medius.
Touchless rate
89.4%
Total invoice processing cycle time
Medius Benchmarks
BEST-IN-CLASS
About this KPI
A fast invoice process is not only positive from an operational efficiency perspective. It also enables timely payments which in turn result in lower supply chain risk and improved supplier relationships. In a manual or semi-automated process it is usually the invoice matching procedure and inefficient deviation management that slow down the overall process.
This KPI measures the number of days it takes from when a 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
Silver Eagle Distributors implemented a fully digital and automated AP solution integrated with their ERP for synchronization of PO data in real-time.
Total invoice processing cycle time
0.6 DAYS
We now have full visibility and control of our invoices and financials with the new automated workflow process. We can report on time and with complete accuracy.
Elise Byrd, AP Manager, Silver Eagle Distributors
Get all the details and best practice tips
Download the full report to learn more details on every step of the accounts payable process. Plus, you’ll get tips on how to improve performance on each of the KPIs and learn the business benefits you can expect with an optimized process. Get your copy today!
