Accounts Payable Savings
Accounts Payable Savings
| Module | Description of Business Issues | Startup | Corporate | Enterprise |
| AM | Total vendor purchases % purchases w/discounts % average vendor discount Discounts taken Additional discounts available |
$ 10,750 | $ 19,750 | $ 31,000 |
| AM | Cost of Capital % paid early Av. days paid early Savings (cost of capital) |
$ 3,888 | $ 7,000 | $ 10,888 |
| AM | Long distance charges – A/P % savings from fewer callbacks Savings |
$ 200 | $ 300 | $ 375 |
| AM | % of invoices generating credits % average credit % overlooked Available credits |
$ 900 | $ 1,620 | $ 2,520 |
| LS | Number of A/P clerks % time spent writing checks % savings Savings |
$ 24,000 | $ 48,000 | $ 120,000 |
| LS | Cost of Labor % time processing invoices % invoices EDI % time reduced through EDI Savings |
$ 39,375 | $ 78,750 | $ 196,875 |
| LS | % time devoted to vendor inquiries % savings Savings |
$ 900 | $ 1,800 | $ 4,500 |
| AM | Payment made instead Adjustment % loss for payment % loss for late receivable |
$ 7,500 | $ 13,500 | $ 21,000 |
| AM | is inaccurate with unusual terms % loss for inaccurate early payment |
$ 5,000 | $ 9,000 | $ 14,000 |
| AM | % loss for fraudulent check | $ 25,000 | $ 45,000 | $ 70,000 |
| LS | % time spend for Correction | $ 15,000 | $ 30,000 | $ 75,000 |
| LS | % loss of time | $ 3,000 | $ 6,000 | $ 15,000 |
| LS | % time lost in tracking the merchandise | $ 150,000 | $ 270,000 | $ 315,000 |