Accounts Payable and Expense Reimbursement Sample Report

8/10/2019 Accounts Payable and Expense Reimbursement Sample Report

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Note: Mock data provided for purposes of illustration.

SAMPLE REPORT

Open Standards Benchmarking

Financial Management:

Accounts Payable & ExpenseReimbursement

Benchmarking Report

Confidential 2009 APQC. ALL RIGHTS RESERVED.


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Table of Contents

Table of Contents

Executive Summary

Survey Scope and Demographics

Quantitative Data - Key Performance Indicators

Quantitative Data - Other Performance Indicators

Quantitative Data - Supplemental Data

Summary of Qualitative Information

About APQC

Instructions

Thank you for participating in this valuable benchmarking research. For information on benchmarking your organization's performance inother critical process groups, visit http://www.apqc.org/open-standards-benchmarking-assessments, or call us at 800-776-9676.

To move through this report, please click on the table of contents items above or click on the tabs at the bottom of the page.

Confidential 2009 APQC. ALL RIGHTS RESERVED.


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Executive Summary Note: Mock data provided for purposes of illustration.

How to Use the Open Standards Research Report

To help your organization gain the greatest value from its custom Open Standards Research report, APQC has outlined some simple and effective ways to leverage Open S

Reviewing Your Open Standards Research Report

When you receive your benchmarking report, set aside a block of time to read through it in its entirety. Note any questions you would like to pose to the APQC research t

information. You can contact the Research Services help desk by phone at 800-776-9676 or +1-713-681-4020 and by e-mail at [email protected].

Stakeholder Review Session

Conducting a review session with key stakeholders is an excellent way to develop and gain support for improvement initiatives. Some of the most common ways that org

Research reports in their stakeholder review sessions are:

to set goals as part of the annual budgeting and planning process;

to identify and prioritize improvement projects;

to compare performance and business practices across multiple internal units;

to learn about and adapt best practices from top performers;

to incorporate metrics into businesses cases to support restructuring, merger, or outsourcing evaluations;

to provide performance data for common frameworks or methodologies such as Six Sigma; and

to establish a baseline prior to a technology implementation.

Heres how three past participants leveraged the information in their reports:

> A building products manufacturer held a two-day event with leaders from various functional areas to discuss the data. The company coupled the Open Standards Resea

plan improvements. Over the course of two days, the company spent 20 hours reviewing findings and developing a list of 20 improvement projects.

> International Truck & Engine used several reports to facilitate its annual planning process. A team reviewed the data, flagged improvement areas, and set goals for the

between five and 10 action items for each Open Standards Research report it completed.

> Working with a consulting firm, Thomas Steel Strip used the Open Standards Research report as a foundation for its process improvement plan. The team created a mat

some calculations, and conducted work sessions to identify improvements. As a result of the follow-on activities, the supply chain area reduced finished goods inventory binventory turns, allowing for lower inventory levels and faster delivery.

Heres what participants had to say about their Open Standards Research reports:

> The Open Standards Research report will make us more aware and smarter


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Total cost of the process "process accounts payable" per "process accounts payable" FTE

In order to evaluate the effectiveness of an organization's accounts payable function, one should consider a balanced dashboard of metrics and, ultimately, whether or

meeting the needs of its two primary stakeholders: its business partners and its employees. Oftentimes, one of the first diagnostics of accounts payable performance is accounts payable" per "process accounts payable" FTE as compared with in the benchmark pool (though it must be noted that the overall performance of accounts pay

on cost alone, and a lower cost does not always indicate "better" performance, especially if not supported by other key indicators, such as process efficiency and staff p

Section 2 - Best Practices, Business Drivers, and Gap Analysis

Total cost of the process "process accounts payable"

per "process accounts payable" FTE

$100

$150

Your Site Top Performers


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For a good measure of overall effectiveness of the accounts payable organization, companies may want to see how they rank in terms of the number of invoices proc

FTE:

Number of invoices processed per "process accounts payable" FTE

As a supporting metric, the accounts payable organization may need to monitor the cycle time in days from receipt of invoice until payment is scheduled.

Cycle time in days from receipt of invoice until approved and scheduled for payment

Number of invoices processed per "process accounts

payable" FTE

Cycle time in days from receipt of invoice until approved and

25.0

30.0


500

250



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Accounts Receivable

Finance Organization

General Accounting and Reporting

Internal Controls

Payroll

Planning and Management Accounting

Contact Us

For more information, please contact the Research Services team:

Phone: 800-776-9676 (outside U.S. +1-713-681-4020)

E-mail: [email protected]

In order to get complete assessment of the various challenges many organizations are facing related to cost drivers, performance needs and overall effectiveness of ke

consider completing the other Open Standards Research finance management benchmarking surveys.
http://www.apqc.org/portal/apqc/site?path=/research/bmm/osbc/fa/accountsreceivable/index.htmlhttp://www.apqc.org/portal/apqc/site?path=/research/bmm/osbc/fa/financeorganization/index.htmlhttp://www.apqc.org/portal/apqc/site?path=/research/bmm/osbc/fa/generalaccounting/index.htmlhttp://www.apqc.org/portal/apqc/site?path=/research/bmm/osbc/fa/internalcontrols/index.htmlhttp://www.apqc.org/portal/apqc/site?path=/research/bmm/osbc/fa/payroll/index.htmlhttp://www.apqc.org/portal/apqc/site?path=/research/bmm/osbc/fa/profitcostmanagement/index.htmlhttp://www.apqc.org/portal/apqc/site?path=/research/bmm/osbc/fa/profitcostmanagement/index.htmlhttp://www.apqc.org/portal/apqc/site?path=/research/bmm/osbc/fa/payroll/index.htmlhttp://www.apqc.org/portal/apqc/site?path=/research/bmm/osbc/fa/internalcontrols/index.htmlhttp://www.apqc.org/portal/apqc/site?path=/research/bmm/osbc/fa/generalaccounting/index.htmlhttp://www.apqc.org/portal/apqc/site?path=/research/bmm/osbc/fa/financeorganization/index.htmlhttp://www.apqc.org/portal/apqc/site?path=/research/bmm/osbc/fa/accountsreceivable/index.html


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Survey Scope and Demographics Note: Mock data provided for purposes of illustration.

Process Classification Framework

The following processes and activities are included in the scope of this survey.

8.6.1 Process accounts payable

8.6.1.1 Verify AP pay file with PO vendor master file8.6.1.2 Maintain/manage electronic commerce

8.6.1.3 Audit invoices and key data in AP system8.6.1.4 Approve payments

8.6.1.5 Process financial accruals and reversals8.6.1.6 Process taxes8.6.1.7 Research/resolve exceptions

8.6.1.8 Process payments

8.6.1.9 Respond to AP inquiries

8.6.1.10 Retain records8.6.1.11 Adjust accounting records

8.6.2 Process expense reimbursements

8.6.2.1 Establish and communicate expense reimbursement policies and approval limits

8.6.2.2 Capture and report relevant tax data

8.6.2.3 Approve reimbursements and advances

8.6.2.4 Process reimbursements and advances

8.6.2.5 Manage personal accounts

The foundation of the APQC's Open Standards Research is the Process Classification Framework, or PCF (www.apqc.org/pcf). APQC and itsmembers developed the PCF, which is updated by a global advisory council of industry leaders. As a common language, the PCF allows

organizations to see and discuss their activities from an industry-neutral viewpoint. Regardless of size, industry, or geography, organizations can

use the PCF to benchmark and improve processes.

The PCF organizes operating and management processes into 12 enterprise-level categories, including process groups and more than 1,500

processes and associated activities. Organizations can then discuss an activity and know its exact parameters. This benchmarking report focuses

on the PCF processes 8.6.1: Process accounts payable, 8.6.2 Process expense reimbursements

2009 APQC. ALL RIGHTS RESERVED. If you would like a dditional or customized analysis, ple ase contact APQC at 800-776-9676. Confidential


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*Note: Sample size only applies to organizations that responded to this question in this particular data set.

The Accounts Payable and Expense Reimbursement Organization Benchmarking

Survey Demographics

3.4%

3.8%

9.6%

9.2%

0.3%

9.7%

4.6%

0.9%

0.3%

1.0%

4.3%12.6%

7.3%

5.5%

9.0%

2.6%

8.0%

2.9%

4.9%

0% 2% 4% 6% 8% 10% 12% 14%

Utility

Telecom

Services

Retail and Wholesale

Rental

Pharmaceutical

Petroleum/Chemical

Other

Non-Profit

Media and Entertainment

InsuranceIndustrial Products

Government/Military

Financial Services/Banking

Electronics

Distribution/Transportation

Consumer Products/Packaged Goods

Automotive

Aerospace

Primary Industry (Business Entity)

586N=



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Asia Pacific 9.7%

Europe, Middle East,

and Africa 22.4%

North / South America

67.9%

Region

(Business Entity)

586N=



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$1 Billion to $5 Billion

28.9%


7.2%


9.9%$500 Million to $1

Billion 12.9%

Greater than $20 Billion

7.5%

Less than $500 million

33.6%

Total Annual Revenue

(Business Entity)

544N=


19.6%

Less than $500 million

13.0%

Total Annual Revenue

(Organization)



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12.8%


18.9%$500 Million to $1

Billion 8.7%


27.0%

470N=



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MetricID Metric Name Metric Category Metric Value Your Percentile N

6914 Total cost to perform the process "process accounts payable" per invoice processed Cost Effectiveness

6917 Personnel cost to perform the process "process accounts payable" per process FTE Cost Effectiveness

6918

Total cost to perform the process "process accounts payable" per invoice line item

processed Cost Effectiveness

6920 Total cost to perform the process "process accounts payable" per $1,000 revenue Cost Effectiveness

6921

Total cost to perform the process "process accounts payable" per

disbursement/payment Cost Effectiveness

6922 Total cost to perform the process "process accounts payable" per $1,000 purchases Cost Effectiveness

6945

Total cost to perform the process "process expense reimbursements" per $1,000

revenue Cost Effectiveness

6946

Total cost to perform the process "process expense reimbursements" per $1,000 of T&E

expenditures Cost Effectiveness

6947

Total cost to perform the process "process expense reimbursements" per T&E

disbursement Cost Effectiveness

6957 Personnel cost to perform the process "process expense reimbursements" per FTE Cost Effectiveness

6958

Total cost to perform the process "process accounts payable" as a percentage of


6960

Total cost to perform the process "process expense reimbursements" as a percentage of


6942 Cycle time in days from receipt of invoice until approved and scheduled for payment Cycle Time6943 Cycle time in hours to enter invoice data onto the system Cycle Time

6944 Cycle time in days from receipt of invoice until payment is transmitted Cycle Time

6956 Cycle time in days to approve and schedule T&E reimbursements Cycle Time

6934 Percentage of invoice line items paid on time Process Efficiency


Your

Organization


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Note: Mock data provided for purpos

MetricID Metric Name Metric Category Metric Value



6918




6921




6945



6946



6947




6958



6960








Your

Organization

Industry Pee

Utility

Utility

Utility

Utility

Utility

Utility

Utility

Utility

Utility

Utility

Utility

Utility

UtilityUtility

Utility

Utility

Utility


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Note: Mock data provid

MetricID Metric Name Metric Category M



6918




6921




6945



6946



6947




6958



6960








O


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6918




6921




6945



6946



6947




6958



6960








Your

Organization

Revenue Range

Greater than $1 Billio












Greater than $1 BillioGreater than $1 Billio





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Note: Mock data provide

MetricID Metric Name Metric Category M



6918




6921




6945



6946



6947




6958



6960








Org


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6918




6921




6945



6946



6947




6958



6960








Your

Organization

Region Peer

N/S America

N/S America

N/S America

N/S America

N/S America

N/S America

N/S America

N/S America

N/S America

N/S America

N/S America

N/S America

N/S AmericaN/S America

N/S America

N/S America

N/S America


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MetricID Metric Name Metric Category Metric Value Your Percentile

6915 Total cost to perform the process "process accounts payable" per process FTE Cost Effectiveness

6923 Personnel cost to perform the process "process accounts payable" per $1,000 revenue Cost Effectiveness

6924 Personnel cost to perform the process "process accounts payable" per $1,000 purchases Cost Effectiveness

6925 Systems cost to perform the process "process accounts payable" per $100,000 revenue Cost Effectiveness

6926 Systems cost to perform the process "process accounts payable" per $100,000 purchases Cost Effectiveness

6929 Value of purchases (in millions) per "process accounts payable" FTE Cost Effectiveness

6948

Personnel cost to perform process "process expense reimbursements" per $1,000


6949

Systems cost to perform the process "process expense reimbursements" per $100,000


6959 Total cost to perform the process "process accounts payable" per $1 billion revenue Cost Effectiveness

6961

Total cost to perform the process "process expense reimbursements" per $1 billion


6962 Total cost to perform the process "process expense reimbursements" per process FTE Cost Effectiveness

8343 Outsourced cost to perform the process "process accounts payable" per $1,000 revenue Cost Effectiveness

8344

Outsourced cost to perform the process "process expense reimbursements" per $1,000


6941 Cycle time in days to resolve an invoice error Cycle Time

6931 Percentage of invoice line items that are matched the first time Process Efficiency

6932 Percentage of invoice line items received electronically Process Efficiency

6933 Percentage of invoices which are manually keyed into the financial system Process Efficiency


Your

Organization


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6948



6949




6961





8344








Your

Organization

Industr

Utility

Utility

Utility

Utility

Utility

Utility

Utility

Utility

Utility

Utility

Utility

Utility

Utility

Utility

Utility

Utility

Utility


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6948



6949




6961





8344








Your

Organization

Revenue Ra

Greater than $1

Greater than $1

Greater than $1

Greater than $1

Greater than $1

Greater than $1

Greater than $1

Greater than $1

Greater than $1

Greater than $1

Greater than $1

Greater than $1

Greater than $1

Greater than $1

Greater than $1

Greater than $1

Greater than $1


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6948



6949




6961





8344








Your

Organization

Region Pe

N/S America

N/S America

N/S America

N/S America

N/S America

N/S America

N/S America

N/S America

N/S America

N/S America

N/S America

N/S America

N/S America

N/S America

N/S America

N/S America

N/S America


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MetricID Metric Name Metric Category Metric Value Your Percentile N

25th

Percentile

6916

Personnel cost to perform the process "process accounts payable" as a percentage of the

total cost for the process

Supplemental

Information

6919

Systems cost to perform the process "process accounts payable" as a percentage of the

total cost of the process

Supplemental

Information

6937 Number of invoiced line items per $1,000 purchases

Supplemental

Information

6952 Number of expense report line items per $1,000 T&E expenditure

Supplemental

Information


Your

Organization All P


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6916



Supplemental

Information

6919



Supplemental

Information


Supplemental

Information


Supplemental

Information


Your

Organization

Industry Peer N

Utility

Utility

Utility

Utility

Peer


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6916



Supplemental

Information

6919



Supplemental

Information


Supplemental

Information


Supplemental

Information


Your

Organization

Revenue Range Peer N P





Peer: Reve


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6916



Supplemental

Information

6919



Supplemental

Information


Supplemental

Information


Supplemental

Information


Your

Organization

Region Peer N

25

Perce

N/S America

N/S America

N/S America

N/S America

Peer: Re


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Summary of Qualitative Information Note: Mock data provided for purposes of il

Qualitative Questions: Select Only One Response

Question Question Value

Cost leadership

Product/service differentiation

Focus on the customerNR

Headquarters

Shared services center/centralized processin

Manufacturing, operating, or business unit

NR

Relatively new emerging market

Growth market

Mature market

Generally in decline

NRSelf-supporting; performs most aspects of th

Relies on other business units for this proces

Relies on shared services center for the proc

Serves as a shared services center for the pro

Outsources to third party

NR

Manual/Spreadsheet

Internally developed

SAP

Oracle (Includes PeopleSoft, and J.D. Edwardproducts)

Infor (Includes GEAC and Baan)

Other accounts payable system (please desc

N t li bl / t d f thi

91.0090 Which of the following best describes the customer strategy for your business entity? (Select only one.)

91.0100 Which of the following functions best describes the role your business entity performs in the corporate

organization? (Select only one.)

91.0110 Which of the following terms best describes the market conditions in which your business entity mainly

operates?

91.0170 For the process "process accounts payable," which of the following best describes your business entity's

role? (Select only one.)

91.0180 Which of the following best describes the system used in the process "process accounts payable"? (Select

only one.)


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Do not know

NR

American Express

Capture Software

Internally developed

Other system to capture/complete empl

Not applicable / no system used for this p

Do not know

NR

Qualitative Questions: Select All Responses That Apply


91.0480 Which software package does your business entity use to capture/complete employee expense data?

(Select only one.)


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About APQC

Today, APQC works with organizations across all industries to find practical, cost-effective solutions to drive quality and process improvement.

More information about APQC and its best practices and benchmarking products and services can be found online at www.apqc.org.

Most recently, APQC introduced the Open Standards Benchmarking Collaborative research, which seeks to standardize the processes and

measures that global organizations use to benchmark and improve performance. With over 5,000 participants from around the world

representing a variety of industries, APQC's Open Standards Research has become the world's premier database for benchmarks and best

practices. A sample list of Open Standards Research participants can be found online at http://www.apqc.org/participants.

In 1992, the evolution of best practices and benchmarking as tools for breakthrough improvement led APQC to form the International

Benchmarking Clearinghouse, a comprehensive service designed to promote, facilitate, and improve the process of learning from best practices.

As an innovative thought leader, APQC, its members, and partners helped launch knowledge management (KM) as a key business practice in

1995.

Founded in 1977, APQC is a member-based nonprofit serving approximately 500 organizations worldwide in all industries. An internationally

recognized resource for process and performance improvement, APQC helps organizations adapt to rapidly changing environments, build new

and better ways to work, and succeed in a competitive marketplace. APQC focuses on benchmarking and metrics, best practices, knowledge

management, performance improvement, and professional development.

APQC claims a distinguished list of achievements including organizing the first White House Conference on Productivity, spearheading the

creation and design of the Malcolm Baldrige National Quality Award in 1987, and jointly administering the award for its first three years.

2009 APQC. ALL RIGHTS RESERVED. If you would l ike additional or customized analysis, please contact APQC at 800-776-9676. Conf idential
http://www.apqc.org/sites/default/files/files/files/OSBC%20Campaigns/OSBC_Participants_Alpha.pdfhttp://www.apqc.org/sites/default/files/files/files/OSBC%20Campaigns/OSBC_Participants_Alpha.pdfhttp://www.apqc.org/sites/default/files/files/files/OSBC%20Campaigns/OSBC_Participants_Alpha.pdfhttp://www.apqc.org/sites/default/files/files/files/OSBC%20Campaigns/OSBC_Participants_Alpha.pdfhttp://www.apqc.org/sites/default/files/files/files/OSBC%20Campaigns/OSBC_Participants_Alpha.pdfhttp://www.apqc.org/sites/default/files/files/files/OSBC%20Campaigns/OSBC_Participants_Alpha.pdfhttp://www.apqc.org/sites/default/files/files/files/OSBC%20Campaigns/OSBC_Participants_Alpha.pdfhttp://www.apqc.org/sites/default/files/files/files/OSBC%20Campaigns/OSBC_Participants_Alpha.pdfhttp://www.apqc.org/sites/default/files/files/files/OSBC%20Campaigns/OSBC_Participants_Alpha.pdfhttp://www.apqc.org/sites/default/files/files/files/OSBC%20Campaigns/OSBC_Participants_Alpha.pdfhttp://www.apqc.org/sites/default/files/files/files/OSBC%20Campaigns/OSBC_Participants_Alpha.pdf

Accounts Payable and Expense Reimbursement Sample Report

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