Service Level Agreement For Accounts Payable

The interview continues in the area of payable peeriosity accounts, where approximately 1,000 creditors and P2P-Praktiker-Peers participate in the interview. Service level metrics also help to put problems into perspective. While the cause may still need to be corrected, five mishandled invoices become less alarming if it is clear that another 20,000 were properly processed during the same period. On the other hand, a sudden increase in errors requires further analysis. THE SLAs, which are kept on track by carefully selected KPIs, plan a fruitful relationship between a company and its BPO supplier. They define a clear set of rules that keep everyone on the same side, while analyzing where improvements can be made. With a well-structured ALS, BPO customers and suppliers can move forward with the certainty that both parties know exactly what has been agreed and what level of service should be met. And ALS and ongoing service level reviews (LRS) provide both organizations with an excellent forum to effectively communicate operational performance and address issues. And in a customer service-related ALS, KPIs can measure: the best BPO suppliers evaluate their team`s performance through agreed KPIs that are monitored and reported weekly to ensure the quality of work during the month. These measures are monitored and declared in addition to the measures agreed for the level of service agreement.

Figures are communicated to the company through a real-time dashboard and/or monthly audit. “What is measured is done” is a mantra known to all those responsible for shared services. This means that key performance measures (“KPIs”) are achievable, balanced and consistent with service level agreements, cascade with individuals and are related to their performance. The AP-SLA may require the BPO provider to achieve a 98% accuracy rate for invoice processing, which significantly reduces the amount of errors. Another client may prioritize processing speed to avoid residue build-up. Quick responses to supplier requests are another common priority of AP service level metrics, in order to maintain strong relationships. SLAs in the BPO industry are ultimately determined by the unique requirements of an organization and the metrics that are most important to its success. There really is no “One Size fits all” set of metrics. In this blog, however, we give an overview of the valuable service level metrics that companies can take into account as part of their BPO contracts. If this is done correctly, the SLAs in BPO ensure that both parties understand their responsibilities and focus on the right areas, while the metrics used to measure service are defined.

They also create accountability and communication, create a dialogue on key issues in the process, and provide corrective action and detailed actions when agreed service levels are not met. When customers provide certain levels of access to internal systems, exceptional BPO providers can even create dashboards that allow customers to view metric power in real time. A credit dashboard could show, for example. B, how many invoices are being processed, where they are in this process and why some people are waiting to be processed.