On our webinar last week with Ardent Partners, "The Hunt for Safe, Short-Term Cash Yield," invoice exceptions were a topic of discussion. According to Ardent Partners research, best-in-class companies still have errors on 7.6% of their invoices, compared to the average of 14% of invoices with errors for the average company. An AberdeenGroup report showed invoice errors to be a problem for a much larger percentage of total invoices: a 12% exception rate for best-in-class companies, and whopping 30% exception rate for laggards.
Costs to resolve invoice exceptions are all over the map, with $20 being a conservative estimate. If you fall into the 30% exception group, at $20 extra cost per invoice to process, that's $600,000 in extra effort for every 100,000 invoices your process. If that cost jumps to $40/invoice to resolve, that's $1.2 million per 100,000 invoices. Ouch.
Do you know what percentage of your invoices contain errors, and the cost to fix them? Do you track problem invoices by invoice type, or supplier groups?
I welcome your comments and feedback.