This measure calculates the percentage of the total cost to perform the "process accounts payable (AP)" process that comes from personnel cost. The purpose of this process group is to process payments of operating expenses and other supplier charges. Personnel cost refers to employee salaries/wages, bonuses, benefits, etc. 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.
(Personnel cost to perform the process "process accounts payable" / Total cost to perform the process "process accounts payable (AP)") * 100
Personnel cost is the cost associated with personnel compensation and fringe benefits of employees (i.e., those classified as FTEs which includes both full-time and salaried/hourly employees) contributing to each respective process. Personnel cost should include all of the following costs.
Employee Compensation: Includes salaries and wages, bonuses, overtime and benefits.
Fringe: Includes contributions made towards the employees' government retirement fund, workers compensation, insurance plans, savings plans, pension funds/retirement plans, and stock purchase plans. This should also include special allowances, such as relocation expenses and car allowances.
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.
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.