Hour Ledger · filled example
Supplier invoice entry
Halcott Mechanical, 12 people, two of them in the office
Task sentence Enter supplier invoices into the accounting system and match them to a purchase order. Starts when the invoice arrives in the shared accounts inbox. Ends when it is posted and matched.
| Person | Days marked (of 4 logged) | Hours | Loaded rate | Cost |
|---|---|---|---|---|
| Dana R. Accounts payable | 4 of 4 | 6.75 | $34.00 | $229.50 |
| Miguel S. Office coordinator | 3 of 4 | 3.25 | $31.00 | $100.75 |
| Ray V. Owner, exceptions only | 2 of 4 | 1.00 | $68.00 | $68.00 |
| Total, four logged days | 11.00 | $398.25 |
Where the eleven hours went Bars: share of the 11.00 logged hours, full width is 100 percent
- AChasing a missing or wrong PO number3.75 h34%
- BRe-keying from a PDF or paper invoice3.00 h27%
- CPrice or quantity mismatch against the PO2.00 h18%
- DFinding the person who can approve it1.25 h11%
- EDuplicate, resent or misdirected invoice0.75 h6%
- FOther, named on the line0.25 h2%
Shares are rounded down, so the column shows 98 percent.
Reading. 11.00 hours across the four logged days, at a cost of $398.25 at the rates entered. Miguel and Ray marked the days they did not touch the task as none, so there are no holes in the four logged days. Nobody logged Wednesday, so this is a floor for the week and not an estimate. The sheet does not annualize for you.
Largest single cause: A, 34 percent. The hours are going to purchase order numbers, not to typing.
Decision
- Fix it internally
- Buy something
- Leave it alone
Cause A sits upstream of accounts payable, so invoice software would not touch it. Fix how field crews raise a PO first. Re-check in 30 days.
Illustrative example. Halcott Mechanical, the people and every figure here are invented.