Six hundred invoices, keyed by hand
Profile: a regional distributor processing roughly 600 supplier invoices a month across two AP clerks. Invoices arrive by email, PDF and occasionally fax. Coding and PO matching are manual.
- Invoices / mo
- 600
- Manual cost
- $7,200
- Automated cost
- $2,448
- Modeled saving / mo
- $4,752
Against the Manifold package at $1,797/mo, the modeled net is roughly $2,950 a month and the $3,995 build pays back in about six weeks. Neither clerk is made redundant in this model — both are moved onto vendor management and discount capture, which is where the second wave of return comes from.
Show the full model & assumptions
- 600 invoices × $12 fully loaded = $7,200/month. APQC and Ardent Partners publish $12–$30 for predominantly manual AP; we model at the floor of that range, and it excludes downstream error correction, which research suggests adds another 25–40%.
- 528 clean invoices × $3, plus 72 exceptions still handled at $12, = $2,448/month. Best-in-class published figures land near $2.78 per automated invoice; we round up because a first-year program is not best-in-class, and we deliberately keep charging ourselves the full manual rate on everything the machine hands back to a person.
- Time: 12.5 minutes per invoice down to roughly 1.2. That is about 113 hours a month returned across the two clerks — most of a full-time role, redeployed rather than removed.
- Exception rate assumed at 12%, against a published ~9% for top performers and ~22% for everyone else. Seventy-two invoices a month still touch a human, and the model pays full manual price for every one of them. That is the design, not a failure of it.
- Early payment discounts excluded entirely. Cycle time falling from roughly 8 days to under 2 makes 2/10 net 30 terms capturable — an effective annualized rate near 36% on the discounted invoices. We leave this out because capture depends on cash position, not on us.
What this model excludes: duplicate payment prevention, which automated matching catches routinely; the audit and close-cycle benefit; and the cost of the AP clerk who leaves and takes the undocumented process with them.