Service Level Agreement Template Accounts Payable

While the cause can still be addressed, five poorly processed invoices become less alarming when it is clear that another 20,000 were processed correctly during the same period. On the other hand, a sudden increase in errors requires further analysis. When customers provide certain levels of access to internal systems, outstanding BPO providers can even create dashboards that allow customers to display the power of measurement in real time. For example, a credit dashboard could show how many invoices are being processed, where they are in this process, and why some are waiting to be processed. SLAs, kept on track by carefully selected PPCs, outline a successful relationship between a company and its BPO provider. They set out a clear set of rules that will keep everyone on the same track, while analyzing areas where improvements can be made. With a well-structured SLA, customers and BPO providers can move forward with the certainty that both parties know exactly what has been agreed upon and what level of service needs to be provided. And the SLA and Ongoing Service Level Reviews (SLRs) provide a great forum for both organizations to effectively communicate about business performance and address issues that arise. An AP SLA may require the BPO provider to have a 98% accuracy rate for invoice processing, which significantly reduces the number of errors.

Another customer can prioritize processing speed so that backlogs don`t pile up. Prompt responses to supplier requests are another frequent priority of AP service agreement measures in order to maintain strong relationships. If executed correctly, BPO SLAs ensure that both parties understand their responsibilities and focus on the appropriate areas, while laying down the metrics used to measure service. They also create accountability and communication, establish a dialogue about important issues within the company, and outline corrective actions and actions if agreed service levels are not met. . . .