Measures the time taken to process and pay invoices to suppliers.

What it Measures ?

How long it takes to pay suppliers.

Relevant StakeHolders 

Accounts Payable Team

In-depth Use Case / Real-world Example

Accounts Payable Processing Time refers to the average time it takes for a company to process and pay invoices after receiving them. For example, if a company processes 20 invoices per month and it takes an average of 10 days to pay each invoice, the processing time is 10 days. Shortening processing times can improve supplier relationships and possibly lead to better payment terms. However, overly fast payments may strain working capital. Companies must balance timely payments with maintaining adequate cash flow.