Tracking the rate of invoices that require manual intervention is important for assessing the efficiency of your invoicing process. Here’s how you can track and manage it effectively:

Define Invoice Exceptions

Start by defining what constitutes an invoice exception in your context. This could include invoices that are missing information, have discrepancies, or require special handling for approval.

Capture Data

Implement a system or process to capture data on all incoming invoices. This could be through an automated invoicing system that logs each invoice and flags exceptions, or through manual tracking if automated systems aren’t in place.

Calculate the Exception Rate

To calculate the invoice exception rate, divide the number of invoices that require manual intervention (exceptions) by the total number of invoices processed within a specific period. Multiply the result by 100 to get the percentage.

Analyze Trends

Monitor the exception rate over time to identify trends and patterns. High exception rates may indicate issues with supplier compliance, data entry errors, or inefficiencies in the approval process.

Root Cause Analysis

Investigate the root causes of invoice exceptions to address underlying issues. This could involve improving supplier communication, enhancing data capture processes, or streamlining approval workflows.

Continuous Improvement

Implement measures to reduce the invoice exception rate based on your analysis. This might include training staff, updating procedures, or investing in automation tools that can minimize manual intervention.

By consistently tracking and managing the invoice exception rate, you can improve the efficiency of your invoicing process, reduce errors, and ensure timely payments to suppliers.