Measures the time taken to process an invoice from receipt to payment.

What it Measures ?

Time taken to process and pay an invoice

Relevant StakeHolders 

Accounts Payable, Finance Teams

In-depth Use Case / Real-world Example

A company producing electronics calculates Invoice Processing Time by tracking how long it takes from receiving an invoice from a supplier to making the payment. For example, if the company’s target is 10 days and the actual average is 12 days, there’s room for improvement. Reducing invoice processing time helps improve cash flow management and strengthens supplier relationships by ensuring timely payments.