Measure your AP in ten numbers

1. The ten measures

Ten measures in three groups, each with a formula you can run on data you already hold:

• Cost and productivity: cost per invoice, cycle time, invoices per AP person
• Process quality: PO linkage, exception rate, straight-through rate
• Working capital and suppliers: supplier e-enablement, days payable outstanding, early payment discounts taken, on-time payment rate

Each one flags the trap to avoid. Days payable outstanding, for example, should be compared with your agreed terms, not treated as a target to stretch.

2. Where to start fixing

Take last month’s exceptions and sort them by cause. In most teams, a few causes account for most of the queue:

• Missing or wrong PO number
• Price or quantity that doesn’t match the order
• Goods not yet marked as received
• Supplier details out of date, or a new bank account nobody has checked
• Invoice sent to the wrong inbox or person

Fix the top cause at source, then the next.

3. Small fixes that move the numbers

• Ask suppliers to quote a PO on every invoice, and send back any that don’t
• Agree a tolerance for small price differences so they don’t stop the invoice
• Set a review date for supplier records, and check bank details before any change
• Give every approval route a named back-up, so invoices don’t wait for holidays
• Tell suppliers when they’ll be paid before they ask

There’s also a simple table to track your baseline this month and next quarter.

Benchmarks: Ardent Partners, AP Metrics that Matter in 2026; APQC; The Hackett Group. Figures in US dollars, as published.