Electronic Invoicing

Number of paper invoices you receive monthly

Invoices you receive via mail, e-mail, phone, or fax.

Average time (minutes) to physically handle each inbound paper document

The time to move the invoice from one point to another within the organization. In the receipt of invoices, the handling time is the average time from the point of entry in the company to the data entry clerk that will act on the information (e.g., open envelope, sort, record and forward for data entry). Record all time in minutes (e.g., 3). Do not include elapsed time.

Average time (minutes) to process each inbound paper document

The term "process" defines the length of time in minutes required to enter the information contained on the paper invoice into the company's internal systems. Record all time in minutes (e.g., 5). Do not include elapsed time.

Percentage of inbound invoices that need to be reprocessed

The percentage of documents that may need to be reprocessed due to incorrect data, keying errors, illegible documentation, etc. This varies between 10 and 40 percent depending on the industry (e.g., 15).

Average time (minutes) to reprocess each inbound invoice (e.g., 10)

For paper invoices that you receive that are subsequently processed by data entry clerks, consider the number of minutes required to correct data entry or recording problems (e.g., research, correct data in system, etc.)

Number of payment inquiry calls received per month

These are calls asking when payment will be made, why payment amount is less than invoice, etc.

Average time (minutes) to handle each call. Record time in minutes (e.g., 10).

Average Administrative labor cost (per hour)

Consider employee compensation and benefits costs.

Number of Suppliers