We'd like to see what best In class looks like and compare our performance. Do you have any suggestions? We would really love to get feedback on the below topics:
- Operations monitoring: what KPIs exist, how often are they reviewed?
- Performance management: how is work in queue managed?
- Key controls: what different type of SOX or Key Controls exist and to what level are the reviewed, self-tested, etc.?
- Employee scorecard: what criteria is included, how are those criteria weighted?
From the IOFM Advisory Panel:
- Operations monitoring: We implemented an electronic workflow (AP automation) where our invoices are scanned on the front end and routed electronically to the respective staff member based on alpha assignment. The staff member will enter the invoice if there is a PO assigned or route electronically for approval via Outlook. The approval is then received in our electronic workflow to a “work in process” queue for the staff to enter into the assignment. We send a daily PO feed to our third party and convert 50% of paper PO invoices into an 810. We are able to track the number of invoices processed but not the number sent for approval or the number of discrepant invoices that require the staff to touch an invoice more than once. The next phase of our electronic invoice workflow (automation) will provide these metrics including date and time stamping each step of the invoice life cycle; when it was received, sent for approval, approved and processed. This will enable us to set goals such as all invoices are to be approved within seven days and for those that are not, we will be able to identify the bottleneck right down to the manager.
- Performance management: Our invoices have three work queues, new, waiting for approval and work in process (approved and ready to be processed in the ERP system). We identify urgent vendors in our vendor master and send a daily vendor master feed to our third party for our AP Automation so the urgent vendors can be routed to their own work queue for priority handling. When we implemented automation we needed to replicate the manual review process which allow my staff to prioritize their work, identifying these vendors in the vendor master so they can be prioritized in our workflow works very well. Check requests and employee reimbursement also have their own work queue to assist with prioritizing the work.
- Key controls: No one person can enter an invoice, add/modify a vendor record (Vendor Master) and issue a payment. All payments =>$20K must be approved by the VP of Finance.
- Employee scorecard: Number of invoices entered, PO and non-PO.