Jennifer is still at the beginning of her career. Nevertheless, she is already interested in topics that do not only concern day-to-day operations and the posting of invoices. This includes evaluations that show where the accounts payable accountant needs to take concrete action because unnecessary costs would arise, the relationship between supplier and customer could suffer, or key figures that are important.
KPI stands for Key Performance Indicator. These are quantitative metrics used to assess the performance and efficiency of companies, departments, or specific processes. KPIs assist in tracking progress towards achieving business goals and identifying areas that can be improved.
Accounts Payable Overview App
Firstly, we take a more detailed look at the Accounts Payable Overview app. This app is beneficial as it allows one to see a lot of information on a screen and then be able to access the areas that require action.
In the Payables Management, there is a central app that showcases all important payables management KPIs – Accounts Payable Overview. With this analytical overview app, you can monitor important accounts payable indicators and access further accounts payable analytical apps. This is a central entry point for the payables. This app is beneficial as it allows one to see a lot of information on a screen and then be able to access the areas that require action.
An accounts payable accountant is generally responsible for specific suppliers. In the filter area, the accountant can decide for which suppliers they want to receive information, for example, the company code(s), for which region, or for which Accounting Clerk. If the responsibility is really defined in the master data, they can select exactly their suppliers here.
This overview app includes, for example, the following indicators:
Cash Discount Utilization
Days Payable Outstanding
Suppliers with Debit Balances
Invoices Blocked in Supplier Master Data
Due Invoices Free for Payment
For an accounts payable accountant, it is crucial to ensure that due payments are made at the right time. Not too early, as the funds can be put to better use elsewhere during that time, but also not too late, as you don't want to miss out on cash discounts or receive reminders. Since we usually want to continue ordering from suppliers, it is beneficial to have invoices paid on time.
For the accounts payable accountant, it is very important that due payments are made at a good time. Not too early, because in the meantime you can use the money well for something else, but also not too late, because you do not want to lose a cash discount and do not want to receive any dunning letter. Since we usually want to continue ordering from suppliers, it's helpful to have invoices paid on time.
With the app "Overdue Payments" you can check the overdue payable amount to your suppliers by supplier company code, supplier group, supplier, and reason for payment block. You can monitor the status of the overdue payments for critical suppliers in your area of responsibility. You can also find out about the potential risks and notify the responsible persons to take action.
Display the overdue payable amount and the payable amount that is not yet overdue.
Distinguish between critically overdue amount and uncritically overdue amount.
Analyze the payable amount by different views, including company code, supplier group, reason for payment block, and supplier.
Break down the overdue payable amount to four intervals before today when you analyze the amount by supplier.
Specify the key date for data analysis.
Cash Discount Utilization
With this app, you can monitor in real time the cash discount utilization in your responsible area. You can find out which company code or location needs to make better use of cash discounts. This helps to increase the efficiency of accounts payable management and to reduce costs.
For the accounts payable accountant, it is very important that due payments are made at a good time. Not too early, because in the meantime you can use the money well for something else, but also not too late, because you do not want to lose a cash discount and do not want to receive any reminders.
Aging Report for Accounts Payable
You use this app to analyze the payable amounts to suppliers by aging intervals. These intervals allow you to quickly recognize the payments that are due in the current month, the next month, and so on.
These key figures are of great importance as they directly affect the financial well-being of the company and its relationships with suppliers. Not only can these key figures be determined, but they can also be analyzed. Business decisions can be based on them. Thorough monitoring and analysis of these key figures enables efficient management of accounts payable and ultimately contributes to the profitability of the company.
Now Jennifer wants to know how to navigate these apps. Watch the video, Jennifer!