The Scottish Government

This indicator examines the use of technology to support efficiency in the electronic payment for goods and services.

E-payments improve efficiency by:

• Automation eliminates manual tasks
• Higher reconciliation rates
• Shorter processing cycle time
• Reduced penalty interest and quality control and responsiveness
• Real-time information
• Electronic authorisation, authorisation schemes and control points in workflow
• Information integrity improved through authorization measures and event logging
• Improved decision support
• Supports geographic independence through web-enabled workflow and electronic filing.

This BPI is recorded within the profile update in the Hub. When you log into the profile data input page you will be asked the following questions:

• How many payments has your organisation made in total over the prior reporting period? (Where 'payment' = invoices, rather than individual line items. Note that if number of invoices was used as a proxy for number of purchase transactions in BPI9d then this answer will be the same.)
• How many payments has your organisation made using an e-payment (e-invoicing, e-consolidated billing/self billing, or automated match from purchase order to invoice) over the prior reporting period?

The hub will then automatically calculate your BPI result using the following calculation:

(Number of payments processed electronically ÷ Total number of transactions) x 100

Where 'transaction' = invoices, rather than individual order line items.

Where 'processed electronically' can be any of the following types of activity:

• Payment on receipt (would qualify as e-invoicing (even though there is no invoice) as the billing information is the order line detail matched against the (electronic) delivery information).
• Procurement Cards
• Electronic Invoicing (Also referred to as e-Invoicing) Electronic invoicing is the electronic transfer of invoicing information (billing and payment) between business partners. Electronic invoicing requires the sending of invoices "by electronic means", i.e. transmission or making available to the recipient and storage using electronic equipment for processing (including digital compression) and storage of data, and employing wires, radio transmission, optical technologies or other electromagnetic means (Council Directive 2001/115/ EC, art 2(2)(e)).

Quarterly

Local Organisations

Accounts Payable System/E-procurement system.

Auditable

Increasing use of technology

To increase efficiency

Procurement teams should introduce technology to simplify procurement processes where there is a VFM case for doing so, in order to effectively engage with suppliers and customers, increase compliance through electronic ordering systems and ensure prompt payment. Comparing scores in these areas with all e-procurement BPIs may indicate where technology acts as a barrier to improvement, or where its implementation may aid improvement.