AP cost and benchmarks
What does it actually cost to process one invoice?
Most AP cost-per-invoice numbers are built to sell software. Here is the arithmetic with the assumptions visible, including the lines vendors leave off the slide.
9 min read
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AP cost and benchmarks
What invoice processing actually costs, how to benchmark it, and where the money goes.
AP cost and benchmarks
Per-page invoice pricing is a tax on your W-9s
If your AP tool bills per page, you pay for every certificate of insurance, every multi-page statement, and every document a vendor attached to be helpful. Here is the arithmetic.
7 min read
AP cost and benchmarks
Slow AP costs you twice: the discounts you miss and the late fees you pay
A 2/10 net 30 discount is a 36% annualized return on paying early. Most portfolios cannot take it, because approval takes longer than ten days.
8 min read
AP cost and benchmarks
A duplicate payment costs about four times the invoice to recover
The same invoice arrives by email and gets re-sent on a statement. Both get paid. Getting the money back takes a vendor's cooperation you may not have.
8 min read
AP cost and benchmarks
How many invoices can one AP clerk handle?
The benchmarks say 1,000 to 2,000 a month. That range is useless without knowing the document mix, because exceptions cost 2.5x a clean invoice.
8 min read