Percentage of total finance function FTEs allocated to the process "process accounts payable"

This measure calculates the percentage of total finance function full-time equivalent employees (FTEs) allocated to the "perform accounts payable (AP)" process, which consists of processing payments of operating expenses and other supplier charges. The finance function refers to financial strategy and planning, investment management, profitability and cost management, revenue cycle, accounts payable and expense reimbursement, payroll, general accounting and reporting, fixed asset management, and internal audit. This measure is part of a set of Supplemental Information measures that help companies evaluate additional variables not covered elsewhere for the "process accounts payable (AP)" process.

Benchmark Data

Lock

Sorry! Not all users have access to all of our resources.

Want to unlock access to all of our resources?

Learn about Membership icon--arrow--right

Measure Category:
Supplemental Information
Measure Id:
102032
Total Sample Size:
1,748 All Companies
Performers:
25th
Median
75th
Key Performance
Indicator:
No

Compute this Measure

Units for this measure are percent.

Back to Top

(Number of FTEs who perform the process "process accounts payable (AP)" / Number of FTEs who perform the function "manage financial resources") * 100

Key Terms

Back to Top

FTEs - (Full Time Equivalent Employees)

To calculate the number of full-time equivalents employed during the year for each respective process or activity, you must prorate the number of employees and the hours spent performing each process/activity. Assume that a full-time worker represents 40 hours per week. Provide the average number of full-time equivalents employed during the year for each respective process. Include full-time employees, part-time employees, and temporary workers hired during peak demand periods. Allocate only the portion of the employee's time that relates to or supports the activities identified for an applicable process. Prorate management and secretarial time by estimating the level of effort in support of each activity, by process.

For example, a part-time secretary in the finance department for XYZ, Inc. charges all of his time to finance department activities. He works 20 hours per week. The secretary splits his time evenly supporting employees working in the general accounting process and the financial reporting process. Thus, his time should be allocated by process. So, if he works throughout the year and supports these two processes, his time would be split evenly as:

20hrs/40hrs = .5FTE * 50% for general accounting = .25FTE for general accounting

20hrs/40hrs = .5FTE * 50% for financial reporting = .25FTE for financial reporting

Process Accounts Payable

Processing payments of operating expenses and other supplier charges. This includes the development of policies and procedures around processing of accounts payable and all operations. This process is often supported by key technology enablers.

Finance Function

For the purpose of this study, the following are the main finance function process areas:

Financial strategy and planning Investment management Tax Funding and treasury Profitability and cost management Revenue cycle* Accounts payable and expense reimbursements* Payroll* General accounting and reporting Fixed asset management Internal Audit

Include all of the different processes within the Revenue, Payroll, and Accounts Payable and Expense Reimbursement cycles even if they do not traditionally sit within Finance.

It is important to understand that the figure for the finance function headcount and FTE in this study may well be different from what is perceived as the finance department headcount and FTE. This is because some processes are included (such as order entry) which may not sit within Finance but are considered to be part of the Revenue, Payroll, or Accounts Payable and Expense Reimbursement cycles.

FTE - (full-time equivalent employee)

To calculate the number of full-time equivalents employed during the year for each respective process or activity, you must prorate the number of employees and the hours spent performing each process/activity. Assume that a full-time worker represents 40 hours per week. Provide the average number of full-time equivalents employed during the year for each respective process. Include full-time employees, part-time employees, and temporary workers hired during peak demand periods. Allocate only the portion of the employee's time that relates to or supports the activities identified for an applicable process. Prorate management and secretarial time by estimating the level of effort in support of each activity, by process.

For example, a part-time secretary in the finance department for XYZ, Inc. charges all of his time to finance department activities. He works 20 hours per week. The secretary splits his time evenly supporting employees working in the general accounting process and the financial reporting process. Thus, his time should be allocated by process. So, if he works throughout the year and supports these two processes, his time would be split evenly as:

20hrs/40hrs = .5FTE * 50% for general accounting = .25FTE for general accounting

20hrs/40hrs = .5FTE * 50% for financial reporting = .25FTE for financial reporting

Supplemental Information

Supplemental information is data that APQC determines is relevant to decision support for a specific process, but does not fit into the other measure categories such as cost effectiveness, cycle time, or staff productivity.

Measure Scope

Back to Top

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)