Preparing accounts payable performance reports often requires time-consuming manual work: collecting metrics, investigating anomalies, and crafting clear explanations for executives. This can delay insight delivery and produce inconsistent narratives.The AP Performance Narrative Agent analyzes transaction data, ledgers, analyst notes, and external benchmarks to extract key KPIs, identify anomalies, and determine probable root causes. It then produces concise, narrative-style explanations that highlight trends, risk factors, and cash-flow implications. Reports include supporting evidence from invoice attachments, audit trails, and source documents so narratives remain factual and audit-ready.By moving the focus from data assembly to insight consumption, the agent reduces reporting effort, shortens delivery cycles, and improves consistency in executive reporting. Finance leaders receive timely, actionable narratives that support decision-making and compliance review.
Accuracy
TBD
Speed
TBD
Sample of data set required for AP Performance Narrative Agent:
Memorandum: AP Performance Reporting – Q3 2024
To: AP Performance Reporting System
From: John Doe, Senior AP Analyst, InnovateCorp
Date: October 5, 2024
Subject: Raw Data and Preliminary Notes for Q3 2024 AP Performance Analysis
1. Aggregated KPI Summary
Metric | Q3 2024 | Q2 2024 | Change | Observation |
---|---|---|---|---|
Days Payable Outstanding (DPO) | 46 | 45 | +1 day | Slight increase in average payment time. |
Total Invoices Processed | 12,540 | 10,980 | +14.2% | Higher volume than forecasted, increasing workload. |
On-Time Payment Rate | 87% | 94% | -7 pts | Significant decline requiring root-cause analysis. |
Early Payment Discounts Captured | $45,200 | $68,500 | -34% | Missed discounts likely due to delays and exceptions. |
Invoice Exception Rate | 9.5% | 6.0% | +3.5 pts | Higher exceptions impacting throughput and accuracy. |
Exception ID | Vendor | Invoice No. | Issue Type | Amount | Days in Queue |
---|---|---|---|---|---|
77401 | Quantum Dynamics | QD-2024-9811 | PO Mismatch | $150,000 | 18 |
77492 | Apex Solutions | AS-INV-0043 | Duplicate Invoice | $22,500 | 4 |
77531 | Quantum Dynamics | QD-2024-9904 | Missing GRN | $88,000 | 15 |
77610 | Quantum Dynamics | QD-2024-10012 | PO Mismatch | $125,700 | 12 |
Next Steps:
Sample output delivered by the AP Performance Narrative Agent:
Accounts Payable Performance Report: Q3 2024
Executive Summary
InnovateCorp's Accounts Payable department processed a 14% increase in invoice volume during Q3 2024 while maintaining a stable Days Payable Outstanding (DPO) at 46 days. Performance challenges included a decline in on-time payment rate to 87% (from 94% in Q2), driven primarily by onboarding issues with a new key vendor, Quantum Dynamics. This led to increased invoice exceptions and a 34% reduction in early payment discounts captured. The report details root causes, financial impact, and a predictive outlook for Q4 2024.
Quarterly KPI Dashboard
Key Performance Indicator | Q2 2024 | Q3 2024 | Change | Trend |
---|---|---|---|---|
Days Payable Outstanding (DPO) | 45 Days | 46 Days | +1 Day | Stable |
Total Invoices Processed | 10,980 | 12,540 | +1,560 | Rising |
On-Time Payment Rate | 94% | 87% | -7% | Warning |
Early Payment Discounts Captured | $68,500 | $45,200 | -$23,300 | Warning |
Invoice Exception Rate | 6.0% | 9.5% | +3.5% | Critical |
PO Mismatch
and Missing Goods Receipt Note
errors (e.g., #77401, #77531, #77610). Average time in exception queue: 15 days. Despite delayed payments, DPO remained stable at 46 days, indicating overall cash outflow and cycle management remained effective.
Exception ID | Vendor | Invoice No. | Issue Type | Amount | Days in Queue |
---|---|---|---|---|---|
77401 | Quantum Dynamics | QD-2024-9811 | PO Mismatch | $150,000 | 18 |
77492 | Apex Solutions | AS-INV-0043 | Duplicate Invoice | $22,500 | 4 |
77531 | Quantum Dynamics | QD-2024-9904 | Missing GRN | $88,000 | 15 |
77610 | Quantum Dynamics | QD-2024-10012 | PO Mismatch | $125,700 | 12 |
Validates AP and P-Card transactions against policies, thresholds, and documentation rules, surfacing noncompliance and accelerating period-end close.
Validates, normalizes, and consolidates AP data to ensure accurate and reliable period-end close reporting.
Continuously monitors AP transactions to detect anomalies, duplicates, and high-risk patterns, enabling faster intervention and a smoother financial close.
Analyzes AP KPIs and trends to generate executive-ready performance narratives and insight summaries.
Identifies, categorizes, and prioritizes unresolved AP exceptions, enabling timely resolution, stronger compliance, and smoother financial close.
Provides a trusted and verifiable record of all document activities, simplifying audit preparation and supporting regulatory compliance.