Percentage of invoices paid within the discount period
This measure calculates the percentage of invoices paid within the specified discount period. The discount period is the span of time in which an invoice must be paid in full to receive a reduction in the amount to be paid. For example, "2% ten, net 30" would require paying an invoice within 10 days to earn a 2% discount. An invoice (either electronic or hard copy) 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. This measure is part of a set of Process Efficiency measures that help companies optimize their "process accounts payable (AP)" process by minimizing waste and refining resource consumption.
Benchmark Data
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Learn about Membership| 25th | Median | 75th |
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Compute this Measure
Units for this measure are percent.
(Number of invoices paid within discount period / Number of invoices processed) * 100
Key Terms
Discounts
A discount is a reduction in the amount of an invoice to be paid if the entire amount is paid within a specified time period. An example would be 2% ten, net 30, where if the invoice is paid within ten days a two percent discount is given.
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.
Process efficiency
Process efficiency represents how well a process converts its inputs into outputs. A process that converts 100% of the inputs into outputs without waste is more efficient than one that converts a similar amount of inputs into fewer outputs.