Invoice Cycle Time
The invoice cycle time is the number of days it takes for a company to receive an invoice, process it, and pay it. This metric is used to measure the efficiency of a company’s accounts payable (AP) department.
The ideal invoice cycle time is zero days. That means that as soon as a company receives an invoice, it processes and pays it immediately. In reality, most companies have an invoice cycle time of at least a few days.
There are many factors that can affect a company’s invoice cycle time, including the size of the AP department, the complexity of the invoices, and the payment terms of the suppliers.
