{"id":140002,"date":"2021-09-02T15:39:27","date_gmt":"2021-09-02T13:39:27","guid":{"rendered":"https:\/\/easy-software.com\/?p=140002"},"modified":"2025-06-10T11:10:25","modified_gmt":"2025-06-10T09:10:25","slug":"the-p2p-process-in-figures-the-10-most-important-kpis-at-a-glance","status":"publish","type":"post","link":"http:\/\/easy-software.com\/en\/newsroom\/the-p2p-process-in-figures-the-10-most-important-kpis-at-a-glance\/","title":{"rendered":"The P2P<\/em> Process in Figures: The 10 Most Important KPIs<\/em> at a Glance"},"content":{"rendered":"
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Procurement is becoming more and more digital and for good reason: McKinsey estimates<\/a> that companies can automate 36 percent of their procurement processes using technologies that are already available today. For example, many procurement departments have begun to digitally transform their procurement-related processes with purchase-to-pay software.<\/p>\n\n\n\n

By digitalizing procurement, you can make the entire purchase-to-pay process<\/a> leaner, more transparent and more efficient. As is so often the case, however, the devil is in the details when it comes to this topic: many companies only digitalize parts of all relevant processes. The result is media discontinuity between digital and analog data processing, which creates the dreaded data sinks and data silos and negatively impacts all downstream workflows.<\/p>\n\n\n\n

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Listen to this blog post:<\/strong><\/p>\n\n\n\n

Perfect Use Case: Digitalization of Incoming Invoice Processing<\/h2>\n\n\n\n

A good indicator of the quality of the purchase-to-pay process in a company is incoming invoices<\/a>. This is because, beyond the purchase-to-pay process, customer invoices are of great importance for cash flow within a company and enable major efficiency gains through digitalization. These 10 important key performance indicators (KPIs) for the P2P process will show you why this is so and how you can better assess the status of your procurement digitalization in your company.<\/p>\n\n\n\n

KPIs are business performance indicators that help a company to evaluate the course it has taken. KPIs are not an end in themselves, but should always be understood as a compass that enables changes in your own company to be documented, rationally evaluated and compared with other companies in the industry. In the best case scenario, KPIs help you to get an indication of efficiency deficits, detect hidden costs and optimize your business processes.<\/p>\n\n\n\n

1. Cost Per Invoice<\/h2>\n\n\n\n

At first glance, the cost per invoice is one of the most important KPIs that can be determined in the accounts payable department. Put simply, it quantifies the average total costs incurred by a company in processing an invoice. However, when evaluating this KPI, you must keep in mind that this value can vary greatly from business to business as in some cases very different factors are taken into account when determining this KPI.<\/p>\n\n\n\n

If you want to determine the costs per customer invoice, the KPIs must adequately reflect all factors. For example, the labor and operating costs incurred include expenses for personnel, administration, IT, printing and mailing, but also costs arising from billing errors and late payments, lost supplier discounts and any audits that may be required.<\/p>\n\n\n\n

In doing so, make sure that you include the human factor in the cost calculation for paper-based P2P processes, e.g. by taking into account additional effort for correcting errors. When evaluating the digitalization of the purchase-to-pay process, you must keep in mind that the investment costs resulting from the digitalization measures may initially increase the cost per invoice. However, some of these investments will increasingly pay for themselves over the next few years and lower the \u201ccost per invoice\u201d KPI even further.<\/p>\n\n\n\n

2. Invoice Processing Times<\/h2>\n\n\n\n

In order to better classify primary KPIs such as cost per invoice, it\u2019s helpful to use secondary KPIs, such as invoice processing times. They give you information about the efficiency of your purchase-to-pay process or incoming invoice processing<\/a>. Different cycle times can be of interest here:<\/p>\n\n\n\n