Payment Processing GuideJune 2015

FOR INFORMATION

Purpose and Scope

Objective Focus:• Effective vendor relationship management is vital to HA’s

reputation and our ability to achieve cost savings, ensure continuous operations, and meet our passenger’s expectations

• Late payments can interfere with our daily operations and may put us at higher risk of defaulting upon contractual obligations

Challenges:• High volume of payment requests due to multiple projects and

vendors throughout the different lines of business at HA• The various number of approval levels can cause the payment

process to be lengthy• Both wire and ACH pay functions are processed manually

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Purpose and Scope (cont.)

Goals:• This guide was created to assist in streamlining the payment

process and to further interdepartmental communication• Major steps in the payment process are outlined to serve either

as a quick reference reminder or training aid• Links to the various resources / forms required throughout the

process are included with each step • Any questions or clarifications needed about this guide can be

directed to the Treasury Department

*Steps that require action by the person requesting the payment will include the verbiage “Requestor”. Other steps listed not including “Requestor” are for informational purposes and are processed by approvers / other departments.

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Complete Vendor Packet

Vendor Approval

Enter Requisition for PO

PO Approved

Prep Invoice /

C-138

Upload Invoice to

DMS

Matching Process in PeopleSof

t

Payment Outflow

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Payment Process Steps

Varies4

Business Days

Immediate Varies Immediat

e

2 Business

Days

3 Business

Days

See Outflow

Slide

Vendor Information

Step 1: For New Vendors, Requestor Completes Vendor Packet Link to Packet:

https://www2.hapeople.com/Accounting/New%20Vendor%20Packets/Forms/AllItems.aspx

Requestor sends to Category Manager in Procurement for BIR Approval

After approval received, Requestor sends to Accounts Payable Email: AP.Invoices@hawaiianair.com Vendor set up in PeopleSoft within 4 business days Link to PeopleSoft: https://

www2.hapeople.com/Accounting/SitePages/AccountingForms.aspx Click on PeopleSoft P9.1

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Purchase Order (PO) Approval

Step 2: Requestor Creates Requisition / Requests PO Link to PeopleSoft Manuals: https://

www2.hapeople.com/Procurement/Strategic%20Procurement%20Documents/Forms/PeopleSoft%20Manuals.aspx

Step 3: PO Approved Timeline for PO approval dependent on workflow

• The number of required approvals needed in PeopleSoft will depend on the dollar amount of the requested PO

• Levels of Authority Chart Link: https://www2.hapeople.com/Accounting/Level%20of%20Authority/Forms/AllItems.aspx

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Invoice Processing

Step 4: Requestor Preps Invoice / C-138 (Check Request) Link to C-138 Template & Instructions: https://

www2.hapeople.com/Accounting/SitePages/AccountingForms.aspx

Step 5: Requestor Uploads Invoice to DMS (2 Business Day Process Time)

Please remember to check the DMS Reject Queue to ensure invoice was processed

Link to DMS Site: http://203.197.69.52/OnshoreHA/InvProcessing2/Login.aspx

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Matching Process

Step 6: Once the Invoice clears DMS, PeopleSoft will match it against the PO (3 Business Day Process Time)

If the PO is sufficient, no action is necessary on the requestor’s part for this step

For invoices where the requested amount exceeds the unused amount of the associated PO, the invoice will be placed in Match Exception

Requestor should check Match Exception Query in PeopleSoft to ensure the invoice was successfully matched

If you want an automatic notification of rejections to be emailed to you, please contact People.Soft@hawaiianair.com to have that set up.

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Payment Outflow

Step 7: Payment Outflow For Checks & ACH Requests

All approved invoices in PeopleSoft as of Thursday @ 10AM (weekly) will be processed according to the invoice’s payment terms

Wire Requests Once approved in PeopleSoft, Accounting reviews and sends to Treasury

for payment (4 Business Day Process Time) Treasury sends out wire

– International wires are processed once per week– Domestic wires are processed 2-3 times per week

Foreign wire requests need to be fully approved and received by Treasury at least 10 business days before the end of the month in order to ensure same month processing

**Foreign cut-off: No foreign payments are processed in the last 6 business days of the month

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Mahalo.

Questions?