TheManagementExpertsWWWW.IOMA.COMIOMA������������������������������������������Acomprehensivesurvey-basedreportonthestateoftheaccountspayablefunction.2IOMA'sA/PDepartmentBenchmarksandAnalysis2003Editor:MaryS.SchaefferSpecialReportsManager:JohnPitsiosDesktopEditor:AlisonBrathwaiteManagingEditor:AnnettePagánGroupPublisher:PerryPattersonEditorialDirector:DavidFoster©2002InstituteofManagement&Administration,Inc.Price:$279.00.ThissurveyhasbeensponsoredbyIOMA'sREPORTONMANAGINGACCOUNTSPAYABLE,publishedbytheInstituteofManagementandAdministration,Inc.,29West35thSt.,NewYork,NY10001-2299.(212)244-0360;Fax:(212)564-0465.3�������������������������������������������4IOMA'sA/PDepartmentBenchmarksandAnalysis20035IOMA'sA/PDepartmentBenchmarksandAnalysis2003�����������������7Introduction/Overview12SurveyDemographics14A/PStaffSizeDropsBy34%—DepartmentExperienceRises17CostPerInvoiceRisesButAutomationHelpsCombatIncrease19BenchmarkingA/PDepartmentSpeedandAccuracy24Handlingofe-InvoicesNowTopReasonforUseofInternetinA/P28UseofBenchmarkinginA/PDuplicatePayments&CheckFraud30DuplicatePayments—PercentofInvoicesPaidTwice32Indication/OccurrenceofCheckFraud34NumberofVendorinMasterVendorFile36UseofPositivePayCosts&Efficiency38CosttoProcessaVendorPayment40CosttoProcessaT&EVoucher42DaystoProcessaVendorPaymentErrorRates&Detection44VendorPaymentswithErrors46T&EPaymentswithErrors48VendorInvoiceswithErrors50T&EExpenseVoucherswithErrors52VendorChecksReissued54T&EChecksReissued56ImmediateErrorDetectionProcedures58PaymentsIssuedwithoutOriginalInvoice60FrequencyofCheckRunsAutomation62UseoftheInternetforPayablesFunctions64UseofEDIinPayablesStaffProductivity66NumberofT&EPaymentsPerA/PStafferPerMonth68NumberofPaymentsPerMonthPerA/PStaffer—byNon-POInvoice70NumberofPaymentsMadePerMonthPerA/PStaffer—byPOInvoicePolicies72InvoicesPaidWithinSpecifiedTerms74PoliciesforTakingVendorDiscounts76TheEffectsofAutomationonA/P79UseofA/PAudit&RecoveryFirms6IOMA'sA/PDepartmentBenchmarksandAnalysis20037IOMA'sA/PDepartmentBenchmarksandAnalysis2003Introduction/OverviewIOMA’sA/PDepartmentBenchmarksandAnalysisstudyisbasedontheresponsesof531managersofaccountspayablesdepartmentsfromacrosstheU.S.Byindustry,thelargestresponse(31%)camefromthemanufacturingsector,followedbybusinessservices(10%),healthcare(8%),andfinancialservices(8%).Thestudyrepresentsacross-sectionofcompanysizes,withroughly43%fromfirmswithfewerthan250employees,32%fromcompanieswith250-999employeesand25%fromcompanieswith1,000ormoreemployees.Thestudyisbasedonresponsesfrommanagersaveraging18.4yearsofworkexperiencewithroughlyhalfofthatexperienceasheadoftheaccountspayabledepartment.Overhalfofrespondentshavemorethan5yearsmanagingaccountspayable.UseofBenchmarkinginA/PThestudyrevealsthecriticalimportanceofbenchmarking—especiallyatlargecompanies.Fortypercentofalllargecompanies(thosewith1,000ormoreemployees)benchmarktheiraccountspayableoperations.Nearlyhalfofthelargestcompanies(thosewith5,000ormoreemployees)benchmarkaccountspayable.OnceanA/Pdepartmentpasses10employees,thepercentoffirmsthatbenchmarkthisfunctionjumpssharply.Nearlyhalfofthosecompanieswithastaffsizebetween11-20usebenchmarking,whilethosewithover20benchmarkatleasthalfthetime.Indication/OccurrenceofCheckFraudCheckfraudr...
