Lesson 5 of 5 · 6 min read
GL impact & KPIs
The complete accounting picture of the P2P cycle — every journal entry, the reports AION ships for running it, and the real-dollar savings you can expect to see in Year 1.
The complete GL journey
Using the same example — 1,000 kg of refined sugar at 5 SAR/kg + 15% VAT, 30-day terms, paid from bank — here’s the full set of entries across the cycle:
Day 0 — Receipt
Trigger: warehouse confirms receipt. SLA resolver: inventory-sla-account-resolver → PURCHASING_RECEIPT.
| Account | DR | CR |
|---|---|---|
| 1200 Raw Material Inventory | 5,000 | |
| 2110 AP Accrual | 5,000 |
Day 2 — Invoice approved
Trigger: accountant clicks Approve on AP invoice. SLA resolver: payables-sla-account-resolver → INVOICE.
| Account | DR | CR |
|---|---|---|
| 2110 AP Accrual | 5,000 | |
| 1280 VAT Input | 750 | |
| 2100 AP — Supplier | 5,750 |
Day 30 — Payment
Trigger: treasury records bank transfer. SLA resolver: payables-sla-account-resolver → PAYMENT.
| Account | DR | CR |
|---|---|---|
| 2100 AP — Supplier | 5,750 | |
| 1010 Bank | 5,750 |
Net across the cycle
| Account | Net | Meaning |
|---|---|---|
| 1200 Raw Material Inventory | +5,000 | You now have the sugar in stock at cost |
| 1280 VAT Input | +750 | Claimable on your next VAT return |
| 1010 Bank | −5,750 | Cash out the door |
| 2110 AP Accrual | 0 | Appeared then cleared |
| 2100 AP — Supplier | 0 | Appeared then cleared |
The trial balance stays balanced at every step. No month-end correction required.
Reports AION ships out of the box
| Report | Answers the question | Menu |
|---|---|---|
| AP Aging | Who do we owe, how overdue? | AP → Reports → Aging |
| AP Supplier Statement | What’s our activity with each supplier? | AP → Reports → Statement |
| Open PO Report | What have we approved but not received? | Procurement → Reports → Open POs |
| PO Variance | Where are invoice amounts diverging from POs? | Procurement → Reports → Variance |
| Supplier Performance | Who delivers on time? | Procurement → Reports → Supplier Performance |
| Cash Flow Forecast | What cash do we need next 30/60/90 days? | Cash Mgmt → Reports → Cash Flow |
| VAT Input Report | What VAT can we claim this period? | Tax → Reports → VAT Input |
| GRIR Reconciliation | Any goods received without invoices? | AP → Reports → GRIR |
Every report:
- Available in Arabic and English
- Exportable to Excel and PDF
- Drillable to source documents (PO, receipt, invoice, JE)
- Filterable by operating unit, cost center, supplier, date range
KPIs to watch
Once P2P is automated, these are the numbers to track monthly:
| KPI | Target | Where to find it |
|---|---|---|
| Days Payable Outstanding (DPO) | 30-45 days (industry-specific) | AP Aging → weighted average |
| Three-way match exception rate | < 10% | AP → Match Exceptions |
| GRIR open items > 30 days | Near zero | GRIR Reconciliation |
| % invoices paid within terms | > 90% | AP → On-Time Payment Report |
| Price variance vs. PO | < 2% | PO Variance Report |
| Accounts payable as % of COGS | varies | GL → Financial ratios |
Sudden movement in any of these means something is off — supplier behavior, internal process, pricing agreement.
The real-dollar ROI
For a typical juice/dairy/bakery factory with 10-30 employees, here’s the before/after math:
Before AION (manual / Excel)
- 1 accountant × 30% of time on AP = 48 hours/month
- At 150 SAR/hour (loaded cost) = 7,200 SAR/month
- = 86,400 SAR/year in AP labor
Plus hidden costs:
- 1-2 duplicate payments/year, average 3,000 SAR each = 3,000-6,000 SAR/year
- Audit adjustments (missed accruals, wrong cutoffs) = 5,000-15,000 SAR/year
- Lost early-payment discounts (supplier offers 2% for 10-day pay, you pay at 45) on SAR 500K spend = 10,000 SAR/year
After AION
- Same accountant × 10% of time on AP = 16 hours/month
- At 150 SAR/hour = 2,400 SAR/month
- = 28,800 SAR/year
- Hidden costs: near zero
Net annual savings
- Direct labor: 57,600 SAR
- Duplicate payments eliminated: 3,000-6,000 SAR
- Audit cleanup avoided: 5,000-15,000 SAR
- Discounts captured: 10,000 SAR
Total: ~75,000-90,000 SAR/year saved on P2P alone.
That’s often more than the annual AION subscription, covered by one cycle’s automation.
What you should do now
If you learned one thing from this course, it’s probably this:
P2P is a control system, not a paperwork exercise. If you’re running it on Excel, you’re leaking money — probably 0.5-1% of your annual spend — and you don’t know exactly where.
Three ways to get started in AION:
- Do the lab in Lesson 4 if you haven’t. Buy mango concentrate end-to-end. See the GL entries post themselves.
- Open the demo, navigate to your own chart of accounts, and sketch how your company’s P2P would look mapped onto AION’s structure.
- Reach out if you want a walkthrough with your actual supplier list in front of us.
The other four courses (Order-to-Cash, Plan-to-Produce, Record-to-Report, Hire-to-Retire) build on the same SLA foundation. If P2P made sense, the rest will too.