Accounts Payable Starter Kit, object-centric (version 1.1.0) and case-centric (version 1.3.0) (2024-05-10)

New Paid On-Time formula, more KPIs and inefficiencies added

For these new versions of the object-centric and case-centric Accounts Payable Starter Kit, we’ve rebuilt the ‘Paid On-Time’ formula and classification. The new method classifies invoices into Early, On-Time, and Late, and distinguishes between cash discount and non-cash discount invoices. The new calculation dynamically adjusts the due date per invoice line depending on the cash discount amount taken, removing the possibility of an invoice being flagged as an early payment due to a cash discount being taken.

• For Invoices with no cash discount taken, the latest payment term is used to calculate the invoice due date.
• For Cash Discount Invoices, the amount taken is compared against the Cash Discount available in the payment terms.
• When the cash discount taken is equal or less than the middle payment term cash discount amount, then the middle payment term is used as the due date for the On-Time Payment calculation.
• When the cash discount taken is greater than the middle payment term cash discount, then the earliest payment term is used to calculate the Invoice due date.

We’ve also added new KPIs and inefficiencies to the Days Payable Outstanding use case tab:

• Maximum DPO based on Best terms KPI
• Maximum DPO based on PO terms KPI
• Unfavorable PT mismatch (Inv/PO) Inefficiency
• Unfavorable PT mismatch (Inv/MD) Inefficiency
• Avg. Days Paid Early (only in the object-centric kit)
• Avg. Days Paid Late (only in the object-centric kit)

In the case-centric kit, we’ve added profile views to all inefficiencies, except Duplicate Invoices. The profile views include information about available pre-built applications that can be used to resolve the inefficiencies, as well as possible root causes for them.

For the documentation for the object-centric kit see Open Credit Memo app - object-centric, and for the case-centric kit see Open Credit Memo app - case-centric.