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

This measure calculates the number of calendar days (including weekends) that elapse from the receipt of an invoice until actual payment is transmitted. It is a Cycle Time measure that helps companies analyze the duration of the "process accounts payable (AP)" process from beginning to end.

Benchmark Data

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Measure Category:
Cycle Time
Measure Id:
100575
Total Sample Size:
1,604 All Companies
Performers:
25th
Median
75th
Key Performance
Indicator:
Yes

Compute this Measure

Units for this measure are days.

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Cycle time in calendar days from receipt of an invoice until payment is transmitted

Key Terms

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Cycle Time

Cycle time is the total time from the beginning of the process to the end. This includes both time spent actually performing the process and time spent waiting to move forward.

Invoice

An invoice is a bill prepared by a seller of goods or services and submitted to the buyer. Generally, an invoice contains all pertinent information about the transaction including the date, price, quantity, item number, and credit terms. An invoice can be in either electronic or hard copy form.

Median

The metric value which represents the 50th percentile of a peer group. This could also be communicated as the metric value where half of the peer group sample shows lower performance than the expressed metric value or half of the peer group sample shows higher performance than the expressed metric value.

Measure Scope

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Cross Industry (7.3.0)

  • 9.6.1.1 - Verify AP pay file with purchase order vendor master file (10869)
  • 9.6.1.2 - Maintain/Manage electronic commerce (10870)
  • 9.6.1.3 - Audit invoices and key data in AP system (10871)
  • 9.6.1.4 - Approve payments (10872)
  • 9.6.1.5 - Process financial accruals and reversals (10873)
  • 9.6.1.6 - Process payables taxes (10874)
  • 9.6.1.7 - Research/Resolve payable exceptions (10875)
  • 9.6.1.8 - Process payments (10876)
  • 9.6.1.9 - Respond to AP inquiries (10877)
  • 9.6.1.10 - Retain records (10878)
  • 9.6.1.11 - Adjust accounting records (10879)