Top 10 KPIs in Purchase to Pay  

7 April 2021:

For us to be successful, we need to know what success “looks like.” Often, we will define and design this “look” with our team and our customers (our stakeholders). We then need to time-table it and identify key milestones. Underpinning this structure are your KPIs. These are easy-to-access data points that tell you, in an instant:

a) If you are on target and moving towards your milestones and overall vision of success, or veering off track

b) Where possible problems exist in your operation

Often KPIs are muddled up with metrics. We hear of a company having as many as 130 KPIs in their finance operation. The “key” part of KPIs should be your chief consideration. Out of a sea of metrics, each of which tells a small part of the story, come your Key Performance Indicators – great beacons of information that, taken together, articulate the whole story. There is no ideal number of items for your KPI set, but it should be low enough that you can refer to them once a day, week or month quickly, and garner a full interpretation of the truth. This is different from pouring over hundreds of metrics to try to arrive at the truth…

We have pulled together 10 of the KPIs that you might do well to consider including in your P2P KPI set. When you draw up your own KPIs, make sure aach has a taxonomy – or a clearly defined scope – and that each captures one or more of the following measures: financials (cost or cash), efficiency, productivity, quality, speed.

1) Cost per invoice

If you're serious about cost reduction, then cost per invoice will be an important KPI. The clock starts ticking from the moment the invoice arrives at your organization, be it in your shared services center or somewhere in the business. The clock usually stops once the cost of payment has been incurred.

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Source: Sharespace Digital

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