Procurement KPIs
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Invoice cycle time
Invoice cycle time
Invoice Cycle Time refers to the duration it takes from the receipt of an invoice to its processing and approval for payment.
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The average time for an Invoice lifecycle

KPI Definition

Invoice cycle time refers to the duration it takes from the receipt of an invoice to its processing and approval for payment within an organization's financial systems

Business Value

The Invoice cycle time is used by a business to evaluate the time it takes on average to complete an invoice cycle

Movement Direction

Sample Formula

AVG (Invoice_Payment_Date - Invoice_Issue_Date)

Should Aim For
1
This metric should move down ie., decrease with time
2
3
Track Similar KPIs
Issued Invoice Value
the total monetary amount represented by invoices
Days Payable Outstanding
average number of days it takes for an organization to pay its suppliers
Paid Amount
total monetary value of funds
Invoice Value
the total monetary amount specified on an invoice
Spend
the total amount of money expended
Tail Spend
The total amount for all tail spends
Non PO Spend
The total amount for all non purchase order payments
Savings
the reduction in costs or expenditures
PO spend
the total monetary value of purchases through formal purchase orders
Non PO Invoices
These invoices typically arise from unplanned purchases
Non Contracted Spend
the total monetary value of purchases made by an organization from suppliers or vendors without a formal contractual agreement in place.
Invoice issued
Invoice issued refers to the act of generating and sending an invoice to a buyer from a supplier for goods or services provided.
Invoices
formal documents issued by suppliers to buyers, requesting payment for goods or services provided.
Invoice paid
Invoice paid refers to the completion of the payment
Invoice cycle time
Invoice Cycle Time refers to the duration it takes from the receipt of an invoice to its processing and approval for payment.
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