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

0 %
AVERAGE
0 %

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

0 %
AVERAGE
0 %

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.

SoftwareOne logo

Success story

Global cloud solution provider SoftwareONE focus their process improvement efforts on pinpointing opportunities for further automation. Leveraging reporting within the Medius AP Automation solution they have full visibility into the process to understand where things go wrong.

Touchless rate

88%

 
 
Medius AP Automation enabled us to reach high automation rates right from the start. When an invoice is not automatically matched, we identify the issue and contact the supplier to have them correct and resend the invoice so that we can leverage automatic matching and further improve our process.

Pim Beijen, Group NWC Manager, SoftwareONE

Total invoice processing cycle time

Medius Benchmarks

10 DAYS
AVERAGE
1 DAY

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!